Nvidia’s stock dropped from $229 to $217.55 on Friday, erasing more than half of the nearly 9% gain posted the day before. The author attributes this correction to remarks made by Kevin Warsh at the Federal Reserve’s annual Jackson Hole symposium, during which he suggested interest rates may need to rise to curb inflation if current trends do not improve. According to the CME Group’s FedWatch tool, the odds of a rate hike at the Fed’s September meeting increased significantly. Nvidia trades at 14 times estimated earnings for fiscal year 2028, and the author emphasizes that the company’s growth heavily depends on financing for data center expansion, which is highly sensitive to credit conditions.
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