Jensen Saves The Day: Nvidia CEO Sparks Market Meltup, Sends NVDA $250 Billion Higher

Yesterday's presidential debate was perceived as a victory for Kamala Harris, leading to a surge in Democratic policy pairs and a drop in Republican policy pairs. However, a poll indicated that many undecided voters still favored Trump after the debate. The CPI report showed a hotter-than-expected core CPI print, with a surprising rise in shelter inflation. Concerns emerged about the impact of Fed rate cuts on inflation, particularly in the housing sector. Initially, the CPI report led to a sell-off in stocks, with the S&P nearing its key 100DMA support level. However, remarks by Nvidia CEO Jensen Huang about strong chip demand sparked a buying spree, erasing losses and boosting the S&P by over 1%. The rally extended to other assets, including bonds and oil, despite conflicting sentiment between stocks and fixed income markets. The cross-asset confusion suggests that markets are in disequilibrium and may experience further volatility in the near future. The market's reaction to the debate was initially influenced by online betting services, which gave Harris an advantage. However, a poll revealed that undecided voters were not swayed by Harris's performance. The debate's impact on the market was also shaped by a broader shift in election odds.