One Comment Changes Everything

John Williams, the head of the Federal Reserve Bank of New York, dropped a market-moving statement when he described current policy as "modestly restrictive" and suggested there's "room for a further adjustment in the near term." Translation: rate cuts might be back on the menu sooner than anyone thought.

The market reaction was immediate and dramatic. December rate cut odds rocketed from under 29% to about 71%. Treasury yields dropped, stocks caught a bid, and the entire mood shifted from defensive positioning to risk-on enthusiasm. When the narrative flips this fast, it matters beyond just the numbers. Lower rates mean cheaper borrowing costs, more liquidity sloshing around, and typically stronger performance from risk assets across the board.

Is Crypto Finding Its Floor?

Bitcoin (BTC) briefly touched around $80k, marking a seven-month low, before bouncing back toward $86k. Ethereum (ETH) followed a similar pattern, dropping toward $2,620 before recovering to $2,850.

For investors watching the crypto space, these price levels are starting to look like potential bottoming territory. If the Fed actually follows through with rate cuts, the entire crypto ecosystem could benefit significantly. Lower rates historically drive capital toward higher-risk, higher-return assets, and crypto fits that profile perfectly.

The coins worth watching if this rate cut narrative plays out include Bitcoin, Ethereum, Chainlink (LINK), Solana (SOL), and Ripple (XRP). BlackRock's IBIT Trust holdings suggest institutional interest remains strong even through the recent downturn.

Nvidia's Surprise China Opportunity

Here's an interesting development that could reshape Nvidia's (NVDA) growth trajectory: the Trump administration is reportedly considering allowing the chipmaker to sell its H200 AI chips to China. This would crack open access to one of the largest underserved markets for cutting-edge AI hardware.

Think about the timing here. Nvidia just delivered another blowout earnings quarter, and now there's a potential policy shift that could add an entirely new growth vector. China represents massive untapped demand for high-performance AI chips, and the H200 is exactly the kind of advanced hardware that Chinese tech companies need but haven't been able to access.

If this policy change gets approved, it's the kind of upside surprise that keeps Nvidia in the category of stocks with essentially uncapped growth potential. The company's story was already compelling, but adding the world's second-largest economy as a major customer? That changes the calculus entirely.