Summary:
1. Nvidia announced excellent results, but its revenue forecasts fell short of expectations.
2: The U.S. Department of Labor acknowledged a mistake in its job data release.
3: Federal Reserve member Bostic wants more data to confirm the need for interest rate cuts.
4: Mortgage rates in the United States have dropped to their lowest levels since April 2023.
Nvidia announced excellent results, but its revenue forecasts fell short of expectations.
On Thursday, Nvidia released a report detailing the company's earnings for the second quarter of fiscal year 2025. The report shows that Nvidia's revenue for the second quarter reached $30.04 billion, an increase of 122% from $13.507 billion in the same period last year and a 15% increase from $26.044 billion in the previous quarter, achieving a new record. The company's net profit stood at $16.599 billion, a 168% increase compared to $6.188 billion in the same period last year and up 12% from $14.881 billion in the previous quarter.
The U.S. Labor Department acknowledged an error in releasing job data.
A spokesperson for the U.S. Labor Department stated that a technical glitch prevented the government from sharing key non-farm payroll data on time last week, admitting that employees provided the figures to callers before the official release. The spokesperson mentioned that in the future, the Bureau of Labor Statistics (BLS)—which is overseen by the Labor Department—will release data through multiple platforms, including social media, to ensure that information is available at the time of the release. The agency has implemented a new policy stating that employees who handle data inquiries are not permitted to share the figures with clients until senior BLS officials confirm that the release is widely available to the public. The spokesperson for the Bureau of Labor Statistics noted that a delay of more than half an hour in publishing the preliminary payroll numbers on August 21 forced employees to upload the data manually. While the figures were not available to external web users until around 10:32 AM in Washington State, BLS staff were able to see them internally on the website by 10:10 AM, according to the spokesperson. The spokesperson explained that the issue was exacerbated by a lack of communication within the office regarding how employees should respond to public inquiries. Because the embargo on publication at 10 AM had ended, some office employees who had the information shared it with those who reached out to them for it.
Federal Reserve Board Member Bostic wants more data to confirm the need for interest rate cuts.
Atlanta Federal Reserve Bank President Raphael Bostic said on Wednesday that the anticipated timeline for lowering interest rates has been moved forward due to the quicker-than-expected drop in inflation and the faster-than-expected rise in unemployment. However, he stated that he would remain cautious regarding this matter. Bostic said, "I don’t want us to be in a position where we lower and then have to raise rates again." Upcoming reports on inflation and employment will be crucial for policymakers to determine whether the current trend will continue.
Mortgage rates in the United States fall to their lowest level since April 2023.
Data released on Wednesday showed that the 30-year fixed mortgage rates in the United States weakened for the fourth consecutive week to 6.44%, the lowest level since April 2023. This provided a slight boost to home purchase applications the previous week after a period of sharp declines. Mortgage rates moved in tandem with Treasury yields, which recently declined in anticipation of the Federal Reserve starting to cut interest rates in September.
