Markets on Edge Ahead of Tech Test, Fed Decision | Open Interest 7/27/2026

NVIDIA's Ambitious AI Deals [00:00:00]

• NVIDIA is reportedly working on AI infrastructure deals potentially worth over $750 billion.
• This includes a $500 billion initiative with SK Hynix and a $250 billion data center project with OpenAI.
• NVIDIA CEO Jensen Huang discussed the future of computing, envisioning a world with AI agents and robots using computers.

  "But in the future, we also have AI agents and robots and they're going to be using computers."

Big Tech Earnings Week Kicks Off [00:00:00]

• This week marks the biggest for earnings season, with $24 trillion worth of companies reporting.
• Apple, Amazon, Microsoft, and Meta, representing 17% of the S&P 500, are among those reporting.
• The index is coming off its first two-week loss since March, potentially lowering expectations.

  "Big tech is going to be earning tech alone."

Federal Reserve Policy Meeting Looms [00:00:00]

• Fed officials are heading into a potentially contentious policy meeting.
• Markets are pricing in a 30% chance of an interest rate hike.
• Renewed tensions in the Middle East and soaring oil prices were overshadowed by a tamer than expected inflation print for June.

  "Fed officials head into a potentially contentious policy meeting as price pressures rebound."

Easing Geopolitical Tensions and Oil Prices [00:00:00]

• Geopolitical tensions between the U.S. and Iran have eased for now, with both sides pausing further strikes.
• Oil prices have dropped as a result, with Brent crude falling below $91 a barrel.
• This pause in attacks has created room for diplomacy, though the threat of escalation has not been entirely removed.

  "Oil drops as the U.S. and Iran hit pause on further strikes."

Concerns Over Circular Financing [00:00:00]

• NVIDIA's large deals, particularly with OpenAI, have raised concerns about circular financing.
• Sources suggest NVIDIA will backstop $250 billion of leases for an OpenAI data center.
• NVIDIA's argument is that there is no quid pro quo, and they are supporting the ecosystem to move faster.

  "And that's where the concern on circular financing probably is more concentrated."

New Financial Products Emerge [00:00:00]

• CME is set to launch single-stock futures, allowing investors to hedge or speculate on over 50 U.S. companies.
• Fanatics is acquiring a license from BGC to operate its own prediction market exchange, starting with sports.
• These moves aim to provide new tools for investors and expand business avenues.

  "This is another tool in the toolbox."

Market Performance and Analyst Outlook [00:00:00]

• Markets are rebounding after two consecutive weeks of losses for the S&P 500.
• Tech stocks are leading the gains, with the Nasdaq outperforming.
• Citi Wealth favors equities, particularly U.S. large caps, citing strong earnings fundamentals.

  "The things I love about equities so far in 2026, it's that it's been earnings, not price, that is really kind of driven things."

China's AI Ambitions and Chip Market [00:00:00]

• China is producing a large number of AI researchers, posing a significant challenge in the AI race.
• Chipmaker CXMT surged on its Shanghai trading debut, highlighting China's push for AI independence.
• Concerns exist about American companies facing threats from cheaper Chinese chip production.

  "In the case of China they're producing more AI researchers than probably all of the world has you know in any given year."