Envidia’s earnings results, which were the focus of attention last week, exceeded market expectations.

Net sales were $30.04 billion, 2.2 times higher than the same period last year, and net income was $16.599 billion, 2.7 times higher than market expectations of $28.7 billion. The next sales forecast for the August-October period was $32.5 billion, above the market estimate of $31.7 billion. Both were above market expectations. However, some bullish sources may have expected stronger numbers, and profit-taking selling prevailed immediately after the announcement. After-hours trading ended at -6.86%, or $116.99. However, the financial results are by no means pessimistic, so I think everyone should head to where NVIDIA fell.

Chairman Powell’s speech in Jackson Hole dared to meet market expectations and clearly communicated policy changes. It was understood that inflation was not important and that it was more important to reduce the deterioration in employment. The speed of future interest rate cuts will depend on the data, but the policy was to avoid worsening employment rather than inflation. Earlier in the day, BOJ Governor Ueda’s statement to the Diet that “our basic stance of adjusting the degree of easing remains unchanged,” was perceived by the market as somewhat hawkish.

In the Tokyo market, the Nikkei 225 and the dollar-yen were expected to be affected. The dollar-yen fell to around 144.22 yen and the Nikkei dropped to around 37860 yen, but was eventually pushed up by waiting buyers. However, we thought the dollar would also be pushed up to the 150-yen level, but it has surprisingly held up. Although the market is in a stalemate, it is easy to hold dollar shorts as the policy direction is clear with the U.S. lowering interest rates and Japan raising interest rates. The dollar may not break below ¥140 immediately, but we would like to see a return to the dollar.