S&P 500 Faces Gap Risk With PCE, Nvidia Earnings, and Cook’s Ouster in FocusView all comments (0)0Asian equities are shuffling into the session with their shoelaces tied together, inheriting Wall Street’s stumble and staring down an inflation report that could redraw the map of Fed policy. Japan, Hong Kong, and Australia futures are limping lower, while Chinese contracts march in defiance — their Golden Dragon index clawing higher for a fourth straight night like it’s feeding on a different diet altogether.On Monday, the S&P 500 ran out of oxygen just shy of its record summit. Nvidia (NASDAQ:NVDA), the market’s lodestar, kept climbing into its midweek trial, while Alphabet (NASDAQ:GOOGL) etched fresh highs. But the broader mood soured as the Treasury market tugged harder on the leash.The 10-year crept to 4.28%, the dollar snapped higher, and the frothy optimism of Powell’s Jackson Hole pivot suddenly looked like champagne gone flat.That’s because the “why” of easing cuts deeper than the “when.” Cutting because inflation is dying is a victory lap. Cutting because the economy is cracking is a confession. Right now, the Fed is juggling both storylines — with unemployment risk flickering in one hand and a still-warm inflation flame in the other.Friday’s core PCE reading is the accelerant: consensus at 2.9%, but a three-handle would be a firecracker under the curve. Powell can call tariff effects “one-off” if he likes, but traders still hear echoes of the “transitory” fumble.Dare I say, we’re still not out of the woods, folks!And just as the market tightens its chinstrap for PCE, it’s being force-fed $183 billion of fresh Treasuries this week. Even a beast of a market can choke on that kind of supply.Then comes Nvidia — the $4 trillion colossus that now weighs as much as the entire Nikkei index. Expectations are ludicrously high: nearly 50% EPS growth on revenues kissing $46 billion. Options markets are braced for a 6% swing either way, like the crowd waiting for the cannon to fire. If Nvidia shoots the lights out, AI euphoria holds the stage. If not, the whispers about dot-com déjà vu will echo louder. Last week’s stumble in tech was the first crack in that immaculate surface.As if the macro script weren’t crowded enough, Europe is adding background static. Prime Minister François Bayrou has scheduled a September 8 vote of confidence, with his government hanging by a thread and unions threatening a nationwide blockade. These storms seldom have long legs in markets, but they give EUR/USD longs an excuse to lighten up just as the dollar gathers reinforcements from U.S. yields.The irony is rich: Wall Street is flirting with all-time highs, financial conditions are as loose as a gambler’s tie at 3 a.m., yet the economy beneath is groaning under the weight of slowing growth, a creaking labor market, and inflation that refuses to quit. Powell has cracked open the door to rate cuts, but traders are left wondering whether it’s an invitation to fresh liquidity or a smoke signal that something is breaking.This week the market is a stage lit with three spotlights — a massive Treasury calendar, a PCE print that could tilt the curve, and Nvidia standing trial at center stage. Asia has no choice but to shuffle on under that glare, waiting to see if the script plays as comedy, tragedy, or farce.Of course, it wouldn’t be a day under the White House Big Top without Trump lobbing another grenade at the Fed. But this time it’s no dud — it’s live ordnance. President Trump announced the immediate removal of Fed Governor Lisa Cook, accusing her of falsifying mortgage documents and declaring that “the American people must be able to trust the honesty of those steering the central bank.”The move, posted to Truth Social like a cannon blast, comes just as the Department of Justice begins probing Cook following a referral from FHFA Director Bill Pulte, who alleged possible mortgage fraud.For Trump, the timing is no coincidence. He’s been steadily tightening the vice on Democratic figures while also putting the squeeze on Powell’s Fed, and this is his boldest strike yet. Cook, who just days ago dismissed the uproar as little more than bullying over a tweet, now finds herself ejected from the policy table she vowed not to abandon.Markets felt the shock immediately. The Dollar Index buckled, Treasury yields slipped, and S&P 500 futures sagged under the weight of the uncertainty. Traders know when a White House circus becomes a market event — and today, the tent poles rattled. The independence of the Fed, already a fraying banner, looks tattered against the gusts of politics.What’s left is a central bank suddenly with a missing vote, a looming inflation test on Friday, and a president willing to make personnel changes with the flair of a ringmaster cracking the whip. For the market, the question isn’t just about Lisa Cook — it’s about how many more grenades are stuffed inside Trump’s jacket.S&P 500 Faces Gap Risk With PCE, Nvidia Earnings, and Cook’s Ouster in FocusView all comments (0)0