Nvidia AI and gaming chips revenue, why the August jobs report 'cements' a September rate cut

Market Trends & Economic Indicators - Stocks reversed course sharply due to a softer-than-expected jobs report, increasing expectations of a Federal Reserve rate cut [1] - The US labor market showed signs of cooling in August, with only 22,000 jobs added, significantly below the expected 75,000 [2] - The odds of a 05% (half-point) rate cut in September increased to over 10% according to the CME watch tool [2] - The 10-year and 30-year bond yields both decreased by approximately 9 to 10 basis points, with the 30-year yield falling to 478% [1] Sector Performance - Real estate led sector gains due to falling interest rates, while energy and financials underperformed, declining by more than 2% [1] - Manufacturing sector lost jobs for the fourth consecutive month, particularly in transportation equipment manufacturing [2] Federal Reserve & Monetary Policy - A weaker jobs report is likely to solidify a Federal Reserve rate cut at the next policy meeting on September 17th [1] - Fed Governor Chris Waller had been calling for a 025% (25 basis point) rate cut, but reserved judgment to see if they could do maybe a 05% (50 basis point) rate cut [1] - The market is pricing in the possibility of not only one, but two potential rate cuts in September [1] Company Specific News - Broadcom led the NASDAQ 100 higher after earnings, up 09% (nine-tenths of a percent), while Nvidia decreased by 3% [1] - Google faces a $35 billion fine from the European Union over alleged anti-competitive practices in its ad tech business [6] - Ken View is facing scrutiny after a report linked the company's Tylenol pain medication to autism [6] - Lululemon experienced multiple analyst downgrades following a cut in its outlook for the third quarter and full year due to tariffs and weaker demand [7][8] Tesla & Executive Compensation - Tesla is proposing a new pay package for Elon Musk with ambitious benchmarks, potentially worth $1 trillion if achieved [10][11] - The targets include delivering 20 million vehicles and reaching a market capitalization of $85 trillion [11][13][14] Nvidia's Business Transformation - Nvidia's data center business, focused on AI, generated $41 to $42 billion in revenue, significantly dwarfing the gaming business which generated $4 billion [36] - AI native companies experienced a tenfold increase in revenue in their second year, reaching $20 billion [37] Energy Sector Analysis - The oil market is currently oversupplied, potentially leading to a decline in oil prices to the $50s [45][46] - US energy exports are expected to increase, particularly liquefied natural gas, benefiting companies like Cheniere (LNG) [52] - Tortoise highlights opportunities in electricity, exports, income, and AI infrastructure within the energy sector [51]