Traders were itching for a dovish Powell at the Jackson Hole Symposium on Friday.<\/p>\n
Their dreams came true.<\/p>\n
Powell said “downside risks to employment are rising” and acknowledged that the economic picture “may warrant adjusting our policy stance.”<\/p>\n
In other words, the Fed may cut if things get worse.<\/p>\n
The result?<\/p>\n
The SPX took off like a rocket to get within striking range of all-time highs.<\/p>\n
And rate sensitive stocks like small caps, regional banks, and homebuilders outperformed, big time.<\/p>\n
2. A September Rate Cut to Remember?<\/strong><\/h2>\nAs of Friday afternoon, traders were pricing in an 89.3% probability of a September rate cut, according to the CME's FedWatch Tool.<\/p>\n
This is up from 75% Thursday, and 58% one month ago.<\/p>\n
![\"\"](\"https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/08\/Economic-Data-Charts-12.png\")
<\/a><\/p>\nThis makes the next nonfarm payrolls report a critical one.<\/p>\n
The July report was a mess because of large downward revisions to the May and June readings.<\/p>\n
Another sloppy report could make traders gear up for an even more dovish Fed, and also a weaker economy.<\/p>\n
3. Housing Stocks Knew All Along<\/strong><\/h2>\nOn August 20, homebuilding stocks were ripping and I asked a simple question:<\/p>\n
Could markets be sniffing out rate cuts already?<\/a><\/strong><\/p>\nIn hindsight, the answer is yes.<\/p>\n
Because the SPDR S&P Homebuilders ETF<\/strong> (XHB) has been gently gliding higher in the face of major concerns about the housing market.<\/p>\n![\"\"](\"https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-22-at-3.15.55-PM.png\")
<\/a><\/p>\nSo that's what the smart money has been up to…<\/p>\n
4. Nvidia (NVDA) May Be in Danger.<\/h2>\n
Nvidia<\/strong> (NVDA) earnings are Wednesday after the close, and traders are bracing for an 11th straight earnings beat.<\/span><\/p>\nThe stock is up 105% from the April lows, aided by big capex spending plans from the likes of Alphabet<\/strong> (GOOGL) and Meta Platforms<\/strong> (META).<\/p>\nHowever, post-earnings reactions are all over the place the past few quarters, so tread carefully if you're placing a bet:<\/p>\n
![\"Image\"](\"https:\/\/pbs.twimg.com\/media\/Gy5Y3z9XgAEH6qz?format=jpg&name=medium\")
<\/p>\n
With expectations so skewed to the upside, there is an element of danger here.<\/p>\n
5. Nvidia's Not the Only One<\/h2>\n
Nvidia's not the only tech name reporting next week.<\/p>\n
We also have:<\/p>\n
\n- MongoDB<\/strong> (MDB)<\/li>\n
- Crowdstrike<\/strong> (CRWD)<\/li>\n
- Snowflake<\/strong> (SNOW)<\/li>\n
- Dell<\/strong> (DELL<\/li>\n
- Marvell<\/strong> (MRVL)<\/li>\n
- Alibaba<\/strong> (BABA)<\/li>\n<\/ul>\n
These names cover a decent spectrum of the tech universe, so keep 'em on your screen.<\/p>\n
Here's the full calendar for the week:<\/p>\n
![\"\"](\"https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/08\/T3-Live-Calendar-Earnings-Economics-4.png\")
<\/a><\/p>\n6. Ethereum Is THE Momentum Superstar<\/strong><\/h2>\nEthereum was up 13% on Friday, and is now up over 200% from the April lows, crushing Bitcoin:<\/p>\n
![\"\"](\"https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-22-at-1.05.19-PM.png\")
<\/a><\/p>\nThe FT reported that the EU is exploring Ethereum and Solana as a basis for a digital euro.<\/p>\n
And plenty of market strategists have been throwing out wild Ethereum price targets.<\/p>\n
Standard Chartered recently upped its forecast to $7,500, and FundStrat's Tom Lee said today that “Ethereum is arguably the biggest macro trade for the next 10-15 years.”<\/p>\n
\nEthereum is arguably the biggest macro trade for the next 10-15 years
\n\ud83d\ude0d<\/p>\n
Tickers: $BMNR<\/a> $GRNY<\/a> https:\/\/t.co\/iDXtNmoMJY<\/a><\/p>\n\u2014 Thomas (Tom) Lee (not drummer) FSInsight.com (@fundstrat) August 22, 2025<\/a><\/p><\/blockquote>\n
<\/a><\/p>\nThis makes the next nonfarm payrolls report a critical one.<\/p>\n
The July report was a mess because of large downward revisions to the May and June readings.<\/p>\n
Another sloppy report could make traders gear up for an even more dovish Fed, and also a weaker economy.<\/p>\n
3. Housing Stocks Knew All Along<\/strong><\/h2>\nOn August 20, homebuilding stocks were ripping and I asked a simple question:<\/p>\n
Could markets be sniffing out rate cuts already?<\/a><\/strong><\/p>\nIn hindsight, the answer is yes.<\/p>\n
Because the SPDR S&P Homebuilders ETF<\/strong> (XHB) has been gently gliding higher in the face of major concerns about the housing market.<\/p>\n<\/a><\/p>\nSo that's what the smart money has been up to…<\/p>\n
4. Nvidia (NVDA) May Be in Danger.<\/h2>\n
Nvidia<\/strong> (NVDA) earnings are Wednesday after the close, and traders are bracing for an 11th straight earnings beat.<\/span><\/p>\nThe stock is up 105% from the April lows, aided by big capex spending plans from the likes of Alphabet<\/strong> (GOOGL) and Meta Platforms<\/strong> (META).<\/p>\nHowever, post-earnings reactions are all over the place the past few quarters, so tread carefully if you're placing a bet:<\/p>\n
<\/p>\n
With expectations so skewed to the upside, there is an element of danger here.<\/p>\n
5. Nvidia's Not the Only One<\/h2>\n
Nvidia's not the only tech name reporting next week.<\/p>\n
We also have:<\/p>\n
\n- MongoDB<\/strong> (MDB)<\/li>\n
- Crowdstrike<\/strong> (CRWD)<\/li>\n
- Snowflake<\/strong> (SNOW)<\/li>\n
- Dell<\/strong> (DELL<\/li>\n
- Marvell<\/strong> (MRVL)<\/li>\n
- Alibaba<\/strong> (BABA)<\/li>\n<\/ul>\n
These names cover a decent spectrum of the tech universe, so keep 'em on your screen.<\/p>\n
Here's the full calendar for the week:<\/p>\n
<\/a><\/p>\n6. Ethereum Is THE Momentum Superstar<\/strong><\/h2>\nEthereum was up 13% on Friday, and is now up over 200% from the April lows, crushing Bitcoin:<\/p>\n
<\/a><\/p>\nThe FT reported that the EU is exploring Ethereum and Solana as a basis for a digital euro.<\/p>\n
And plenty of market strategists have been throwing out wild Ethereum price targets.<\/p>\n
Standard Chartered recently upped its forecast to $7,500, and FundStrat's Tom Lee said today that “Ethereum is arguably the biggest macro trade for the next 10-15 years.”<\/p>\n
\nEthereum is arguably the biggest macro trade for the next 10-15 years
\n\ud83d\ude0d<\/p>\n
Tickers: $BMNR<\/a> $GRNY<\/a> https:\/\/t.co\/iDXtNmoMJY<\/a><\/p>\n\u2014 Thomas (Tom) Lee (not drummer) FSInsight.com (@fundstrat) August 22, 2025<\/a><\/p><\/blockquote>\n
In hindsight, the answer is yes.<\/p>\n
Because the SPDR S&P Homebuilders ETF<\/strong> (XHB) has been gently gliding higher in the face of major concerns about the housing market.<\/p>\n So that's what the smart money has been up to…<\/p>\n Nvidia<\/strong> (NVDA) earnings are Wednesday after the close, and traders are bracing for an 11th straight earnings beat.<\/span><\/p>\n The stock is up 105% from the April lows, aided by big capex spending plans from the likes of Alphabet<\/strong> (GOOGL) and Meta Platforms<\/strong> (META).<\/p>\n However, post-earnings reactions are all over the place the past few quarters, so tread carefully if you're placing a bet:<\/p>\n With expectations so skewed to the upside, there is an element of danger here.<\/p>\n Nvidia's not the only tech name reporting next week.<\/p>\n We also have:<\/p>\n These names cover a decent spectrum of the tech universe, so keep 'em on your screen.<\/p>\n Here's the full calendar for the week:<\/p>\n Ethereum was up 13% on Friday, and is now up over 200% from the April lows, crushing Bitcoin:<\/p>\n The FT reported that the EU is exploring Ethereum and Solana as a basis for a digital euro.<\/p>\n And plenty of market strategists have been throwing out wild Ethereum price targets.<\/p>\n Standard Chartered recently upped its forecast to $7,500, and FundStrat's Tom Lee said today that “Ethereum is arguably the biggest macro trade for the next 10-15 years.”<\/p>\n Ethereum is arguably the biggest macro trade for the next 10-15 years Tickers: $BMNR<\/a> $GRNY<\/a> https:\/\/t.co\/iDXtNmoMJY<\/a><\/p>\n \u2014 Thomas (Tom) Lee (not drummer) FSInsight.com (@fundstrat) August 22, 2025<\/a><\/p><\/blockquote>\n<\/a><\/p>\n4. Nvidia (NVDA) May Be in Danger.<\/h2>\n
5. Nvidia's Not the Only One<\/h2>\n
\n
<\/a><\/p>\n6. Ethereum Is THE Momentum Superstar<\/strong><\/h2>\n
<\/a><\/p>\n\n
\n\ud83d\ude0d<\/p>\n