Nvidia's financial report exceeds expectations, the Federal Reserve turns hawkish, Binance admits guilt, and the cryptocurrency market plunges across the board.

The U.S. stock market closed lower yesterday, ending a five-day winning streak, as the Federal Reserve meeting minutes reiterated the need to proceed cautiously on interest rate policies. Meanwhile, AI giant Nvidia announced astonishing profits after hours, but its stock price fell in after-hours trading and did not reach a new all-time high. Cryptocurrencies, on the other hand, experienced across-the-board declines influenced by the news of Binance's plea negotiations.

Nvidia's Third-Quarter Revenue Doubles, Stock Price Slides from High

As the earnings season winds down, investors are skeptical about whether the rally driven by the "Big Seven" mega-cap stocks can continue, and Nvidia has retreated from its all-time high.

Nvidia's third-quarter performance exceeded Wall Street expectations, with revenue increasing by 206% to $18.12 billion and net profit soaring from $680 million to $9.24 billion. The company also expects fourth-quarter revenue to increase to $20 billion, a growth of 231%. However, their CFO, Colette Kress, warned that export restrictions would lead to a "significant decline" in sales to China. The company's stock fell 1.78% in after-hours trading on Tuesday, sliding from the previous day's all-time high of $505. Nvidia's stock price has risen by 236% this year.

Fed Continues Hawkish Stance, U.S. Stocks End Five-Day Rally

The latest Federal Reserve meeting minutes released last night indicated that Fed officials showed little interest in cutting interest rates in the short term, especially with inflation still well above the target. Monetary policy needs to remain "restrictive" until data convincingly shows inflation returning to the Fed's 2% target. All members agreed that the rate policy needs to be "carefully advanced."

The yield on the U.S. 10-year Treasury note closed at 4.417% on Tuesday, lower than Monday's 4.421% and significantly below the peak of 5% a month ago.

Following the all-time highs set by Nvidia and Microsoft the day before, the three major U.S. stock indices ended their five-day rally, leaving investors wondering if the rally driven by the "Big Seven" mega-cap stocks can sustain.

Binance Agrees to $4.3 Billion Settlement, Cryptocurrency Prices Plunge Across the Board

Binance founder Zhao Changpeng, CZ, has agreed to resign and plead guilty in a settlement early this morning, with Binance agreeing to pay a $4.3 billion fine and former Regional Market Head Richard Teng taking over as CEO.

Yesterday, the top ten cryptocurrencies by market value experienced a broad decline, especially Binance's platform coin BNB, which fell by over 10%, trading at $228 before the deadline.