ADDX GO Market Morning Wrap - 14th May

Stock Market

On Tuesday (May 13), the three major U.S. stock indexes showed mixed performances. The Dow Jones Industrial Average declined, while the S&P 500 Index recouped all of its year-to-date losses.

 

At the close, the S&P 500 Index increased by 0.72%, closing at 5,886.55 points, hitting its highest level since early March. Its year-to-date performance shifted from a loss to a gain, with an accumulated increase of 0.08%. The index had previously suffered an accumulated loss of over 17% this year.

 

The Nasdaq Composite Index rose by 1.61%, closing at 19,010.08 points. The last time it closed above the 19,000-point mark was on February 26.

 

The Dow Jones Industrial Average fell by 0.64%, closing at 42,140.43 points. Among its components, UnitedHealth Group plummeted by 17.79%, weighing down the index. Ahead of the market opening, UnitedHealth announced the suspension of its 2025 outlook, and its Chief Executive Officer, Andrew Witty, stepped down immediately due to personal reasons.

 

On Tuesday, the meeting between U.S. President Trump and Saudi Arabia's Crown Prince and Prime Minister Mohammed bin Salman further boosted the stock market. Jensen Huang, CEO of NVIDIA, announced at the Saudi-US Investment Forum that the company would sell more than 18,000 artificial intelligence (AI) chips to Saudi company Humain. NVIDIA soared by 5.63% in a single day, closing at its highest level since February 27.

 

Cryptocurrency-related stocks were among the top gainers. Coinbase rose by 23.97% after the company was included in the S&P 500 Index.

Key Events

• The U.S. is considering allowing the UAE to purchase over one million advanced NVIDIA chips: According to informed sources, the Trump administration is considering an agreement that would allow the United Arab Emirates (UAE) to import more than one million advanced NVIDIA chips, a quantity far exceeding the restrictions of the artificial intelligence chip regulations during the Biden era. Informed sources said the agreement is still under negotiation and is subject to change. From now until 2027, the UAE could import 500,000 of the most advanced chips on the market each year. One-fifth of these chips would be allocated to Abu Dhabi's artificial intelligence company G42, and the rest would go to U.S. companies building data centers in the UAE.
• OpenAI is considering building a data center in the UAE and an official announcement may be made during Trump's Middle East trip: OpenAI is considering building a new data center in the UAE, a move that could significantly expand its business layout in the Middle East. The agreement has not been finalized yet and is still subject to change. It could be announced as early as during U.S. President Trump's visit to the Middle East this week. Trump plans to visit the UAE on Thursday. Sam Altman, CEO of OpenAI, is also currently visiting the region as part of a collective visit by technology leaders.
• AMD reaches a $10 billion strategic cooperation with Saudi artificial intelligence company Humain: AMD has reached a $10 billion strategic cooperation with Saudi artificial intelligence company Humain to advance global artificial intelligence. According to the agreement, the two parties will invest up to $10 billion to deploy 500 megawatts of artificial intelligence computing power over the next five years.
• General Motors and LG Energy Solution disclose progress on new lithium-rich manganese-based prismatic batteries and aim for mass production in 2028: On Tuesday, General Motors of the United States announced that it will cooperate with its partner LG Energy Solution to launch new lithium-rich manganese-based (LMR) prismatic batteries and strive to be the first automaker to deploy such batteries in electric vehicles.
• Microsoft announces global layoffs of 3%: U.S. technology giant Microsoft recently announced that it will lay off 6,000 employees across the company to streamline its management hierarchy. A Microsoft spokesperson told the media that the planned layoffs account for less than 3% of the company's total workforce and will cover employees at various levels in multiple regions, including its professional networking site LinkedIn.

Forex & Commodities

The settlement price of COMEX gold futures rose by $19.80, or 0.61%, to $3,247.80 per ounce.

 

The price of light crude oil futures for delivery in June on the New York Mercantile Exchange rose by $1.72 to close at $63.67 per barrel, an increase of 2.78%.

 

The price of London Brent crude oil futures for delivery in July rose by $1.67 to close at $66.63 per barrel, an increase of 2.57%.

 

The U.S. dollar index accelerated its decline from its four-week high. The U.S. dollar index, which measures the dollar against six major currencies, fell 0.77% on the day and closed at 101 in the currency market at the end of trading.

Key Events

• The price of eggs in the U.S. has dropped from its historical high, and the shortage problem is being alleviated: With the increase in supply and the easing of the avian influenza epidemic, the price of eggs in the U.S. has dropped significantly by 18% from its historical high last month, and the problem of egg shortage in the U.S. is being alleviated.
• The U.S. CPI in April unexpectedly dropped to its lowest level since 2021, and the market expects the impact of tariffs is yet to come: The U.S. Bureau of Labor Statistics released April CPI data that was slightly lower than market expectations. However, the market unanimously believes that although the CPI data has dropped to the level before the last severe inflation outbreak in the U.S., the impact of the "Trump tariffs" will sooner or later appear in the data of the following months.

Cryptocurrency

Bitcoin rose by 2.9% to $104,798, and the 24-hour trading volume of the cryptocurrency fell by 15.7% to $52.43 billion.

 

Ethereum (ETH-USD), the second-largest digital asset by market value, soared by 9.5% to $2,695.

 

XRP (XRP-USD) increased by 2.9%, BNB (BNB-USD) climbed by 1.2%, and Solana (SOL-USD) jumped by 6.5%.

 

Dogecoin (DOGE-USD) gained 5.3%, while Cardano (ADA-USD) added 3.7%.

 

The total market value of the cryptocurrency industry rose by 3.6% in the past 24 hours to $3.4 trillion, with the trading volume down 18.6% to $144.19 billion.

Key Events

• The Dubai government partners with the Crypto platform and allows cryptocurrency payments: the Dubai government announced a partnership with the cryptocurrency platform Crypto on Tuesday, allowing the use of cryptocurrencies to pay for government service fees. This cooperation aims to achieve Dubai's "cashless strategy" with the goal of achieving 90% cashless transactions by 2026.
• A milestone in the cryptocurrency world! Next week, Coinbase will be included in the S&P 500 Index: The cryptocurrency industry has reached a milestone. According to a press release from S&P Dow Jones Indices, Coinbase Global, the largest cryptocurrency exchange in the United States, will be included in the S&P 500 Index, replacing Discover Financial Services, which is about to be acquired by Capital One Financial. This change will take effect before the start of trading on May 19. Industry insiders believe that this move represents the recognition of the digital asset field by the mainstream on Wall Street and may drive more index funds and institutional capital to flow into related stocks and the cryptocurrency market.