Analyst: Investors are shifting to a risk-off mode, significantly reducing risk exposure. The Federal Reserve's meeting minutes and Nvidia's earnings report will influence the short-term direction

Cryptoquant analyst Axel posted on social media that the current volatility in the stock market is rising in sync with the volatility in the interest rate/credit markets, indicating that the market is fully shifting to a risk-off mode. In this environment, funds and institutional investors are beginning to significantly reduce their portfolio risk exposure.

Gold prices have fallen for four consecutive trading days and are currently retreating to the level of $4,033. Investors are closely watching several delayed U.S. economic data releases scheduled for this week.

The Federal Reserve's meeting minutes, set to be released at 3 AM Beijing time on Thursday, will be a key catalyst. This document will not only provide forward guidance on the interest rate path but also help the market assess the short-term direction of monetary policy.

Additionally, the artificial intelligence sector is putting extra pressure on the market. Ahead of Nvidia's third-quarter earnings report, which will be released after the market closes on Wednesday (5 AM Beijing time on Thursday), investor sentiment is becoming tense, as this company has always been a core market barometer for the entire AI field.