BESSENT, WARSH, NVIDIA DOMINATE MARKET FOCUS

Markets are recalibrating around three competing narratives this week. Bessent's surprise bond-buying expansion has sparked debate among strategists—Stan Druckenmiller called it a mistake, but key metrics show the plan is moving markets. Meanwhile, Treasury yields extended their rally as traders game out the Treasury chief's next moves ahead of Jackson Hole. Nvidia dominates the earnings calendar, with the chip giant's results potentially reshaping AI investment sentiment. Rising costs loom over the numbers, creating uncertainty for a stock that's already faced recent pressure. Elsewhere, bond investors remain unconvinced about Warsh's readiness to raise rates, signaling potential headwinds for tightening expectations. Trade tensions with Canada intensify as Washington signals economic pressure on Iran, adding geopolitical risk to the mix. Manufacturing remains a bright spot, with defense and aerospace sectors driving strong demand growth.