April 16, 2025
Market Reaction
The news triggered an 8% drop in Nvidia (NVDA) shares to $89.10 in after-hours trading, confirming bearish activity in NVDA put options the day before.
Cryptocurrencies linked to AI also struggled, with Bitcoin (BTC) sliding from a two-week high of $86,440 to around $83,600. Other major cryptocurrencies like XRP and ADA also saw declines.
Source: Jerome Powell
The risk-off sentiment spread to traditional equity futures, with Nasdaq contracts falling over 1%. Still, the U.S. retail sales report for March, expected to show a 1.2% rise in consumer spending, could ease recession fears.
However, analysts caution that the data might not fully reflect the ongoing trade tensions.
Powell’s Economic Outlook
Federal Reserve Chairman Jerome Powell’s upcoming speech will be closely watched for any hints on future monetary policy.
Amid concerns over the trade war and recession risks, traders are looking for signs that the Fed may need to cut rates sooner than expected, especially amid escalating trade tensions.
