SoftBank Spooks Traders With Nvidia Exit: 3-Minute MLIV

Group 1: Depreciation of Assets - The rapid depreciation of chips used by hyperscalers raises questions about the accuracy of asset valuation [2][4] - There is a concern regarding whether hyperscalers are marking their assets correctly, particularly the accelerators and chips [2][4] - A significant investment, such as 100 billion USD in accelerators, may lose value within 6 to 12 months, prompting scrutiny from councils [3] Group 2: Treasury Market Reactions - The Treasury market is responding to weak US labor market data, leading to expectations of rate cuts from the Federal Reserve [5][6] - The market's reaction is notable as it is the first opportunity to respond to the ADP figures indicating a weakening labor market [6] - There is a split among Federal Reserve speakers regarding inflation and labor market concerns, creating uncertainty about future monetary policy [6][7] Group 3: Japanese Yen and Market Intervention - Japanese officials have specific thresholds for market intervention to stabilize the yen, which are not yet met [10] - The rhetoric from the Japanese administration regarding currency stabilization is increasing as the yen remains under pressure [11] Group 4: SoftBank and Nvidia Stake - There is uncertainty surrounding SoftBank's sale of its Nvidia stake and its implications for company valuation [12][14] - The market reaction to SoftBank's trading has been volatile, reflecting broader concerns about valuation in the tech sector [13][14]