(The opinions expressed here are those of the author, a

columnist for Reuters.)

By Mike Dolan

LONDON, Aug 28 (Reuters) - What matters in U.S. and

global markets today

By Mike Dolan, Editor-At-Large, Finance and Markets

Sky-high expectations left Nvidia shares in the red overnight

despite another earnings beat from the world's most valuable

company, as the market grumbled about slowing growth in core

areas and ongoing geopolitical obstacles.

* The chip giant's shares were down about 2% ahead of Thursday's

open. Doubts about the fate of Nvidia's China business amid the

U.S.-China trade war overshadowed the company's outlook for a

still whopping $54 billion of third quarter sales. The firm said

its outlook assumed no shipments of its H20 chips to China

despite having received some licenses to sell them. Ripples from

the AI behemoth's share price stumble were limited across the

global chip sector, with Nvidia boss Jensen Huang saying the

artificial intelligence spending boom was far from over. And S&P

500 futures remained steady after a record close for the index

on Wednesday.

* Federal Reserve board governor Christopher Waller, tipped by

many as President Donald Trump's pick for the next Chair and

advocate of immediate Fed rate cuts, is due to speak later today

with intensifying political pressure on the central bank the

main focus. With Fed futures pricing for a rate cut next month

creeping back up toward 90%, two-year Treasury yields slipped

further to four-month lows of 3.61% and two-year

inflation-linked swaps closed in on 3% for the first time in

three months. Yields across the curve fell back too after a

reasonable 5-year note auction, with the dollar under renewed

pressure as China's offshore yuan surged to its highest levels

of the year and Chinese stocks rallied.

* Elsewhere, what's almost become an annual budget-related

crisis for the French government - one that could see it

collapse next month - smouldered but French and euro zone stocks

rallied and 30-year French government debt yields fell back from

Wednesday's 13-year high. U.S. second-quarter GDP revisions and

weekly jobless updates top the economic diary later, with more

big retailers reporting earnings.

Today's column looks at the Fed independence row and how

Trump's growing control of the central bank could result in a

resumption of dollar weakness that the administration would

likely welcome.

Today's Market Minute

* Nvidia (NVDA.O) shares dipped on Wednesday as the fate of its

China business hung in the balance, caught up in the trade war

between Washington and Beijing.

* The U.S. government's new stake in Intel (INTC.O) is making

some investors nervous that President Donald Trump's deal

heralds an era of government meddling in private industry,

particularly as the arrangement followed Trump's call for the

resignation of the computer chip maker's CEO.

* Nvidia (NVDA.O) CEO Jensen Huang on Wednesday dismissed

concern about an end to a spending boom on artificial

intelligence chips, projecting opportunities will expand into a

multi-trillion-dollar market over the next five years.

* European gas traders have faced a stressful race against the

clock in recent summers as they have scrambled to refill

depleted gas storage facilities ahead of winter. But, writes ROI

energy columnist Ron Bousso, the continent's traders and

governments should have a lot more breathing room this year.

* Almost everyone agrees that overt politicization of monetary

policy is dangerous. Why is that? ROI markets columnist Jamie

McGeever's provides five examples of where excessive political

interference in central banking can lead.

Chart of the day

Nvidia's stellar earnings beats are almost inevitably

becoming less meaty. The chipmaker expects revenue of $54

billion, plus or minus 2%, in the third quarter, compared with

average estimates of $53.14 billion. But its fiscal

second-quarter results came up short of some analyst

expectations in its important data center segment, with some

analysts suggesting cloud computing providers may be more

cautious about spending.

Nvidia also said it has not assumed any shipments of its H20

chips to China in its outlook, despite having earlier this month

received some licenses to sell them. If geopolitical issues

subside and it gets more orders, Nvidia said it could add $2

billion to $5 billion in H20 revenue in the third quarter. The

overall picture sent its shares down 2-3% in after-hours

trading, clipping about $110 billion from Nvidia's unrivalled

$4.4 trillion market capitalization.

Today's events to watch

* U.S. Q2 GDP revision, Q2 corporate profits (8:30 AM EDT),

weekly jobless claims (8:30 AM EDT), July pending home sales

(10:00 AM EDT), Kansas City Fed's August business surveys (11:00

AM EDT)

* Federal Reserve Board Governor Christopher Waller speaks

* U.S. corporate earnings: Best Buy, Dollar General, Dell,

Autodesk, Hormel Foods, Ulta Beauty, Brown-Forman

* U.S. Treasury sells $44 billion of 7-year notes

* 25th Franco-German Council of Ministers in Toulon

Want to receive the Morning Bid in your inbox every weekday

morning? Sign up for the newsletter

here

. You can find ROI on the

Reuters website

, and you can follow us on

LinkedIn

and

X.

Opinions expressed are those of the author. They do not

reflect the views of Reuters News, which, under the

Trust Principles

, is committed to integrity, independence, and freedom from

bias.