ADDX GO Market Morning Wrap - 17th June

Stock Market  

Last night and into this morning, the U.S. stock market weathered brief volatility from the rollercoaster “fire Powell” drama before resuming gains, with all three major indices closing slightly higher.  

 

At the close, the S&P 500 rose 0.32% to 6,263.7, the Nasdaq Composite gained 0.25% to 20,730.49, and the Dow Jones Industrial Average increased 0.53% to 44,254.78.  

 

Chip stocks declined, with ASML dropping over 8%. Bank stocks were mixed, with Goldman Sachs up 0.9%, Bank of America down 0.3%, and Morgan Stanley down 1.3%. U.S. crypto-related stocks rose, with Circle up over 19%, Robinhood up more than 3%, and Coinbase up over 2%.

 

Individually, Tesla rose over 3%, with reports suggesting Tesla China will “restore” the longest-range Model 3, priced at around 270,000 yuan, potentially launching as early as September as Tesla’s longest-range model yet.  

According to media reports and Trump’s account, the saga began Tuesday evening local time.

 

To push crypto legislation, Trump hosted conservative Republican lawmakers at the White House, where the topic somehow shifted to “firing Powell.” Some attendees posted on social media that night, claiming “Powell is getting fired.”  

 

By Wednesday morning, as more media confirmed the news, financial markets dipped. Trump later clarified he has no intention to fire Powell, describing it as a “conceptual” discussion with lawmakers. He hinted that while it’s “highly unlikely” he’d initiate Powell’s removal, it couldn’t be ruled out if the Fed chair were held accountable for overspending on renovations.  

 

Trump stated at the White House: “We have no plans to take action… I don’t rule anything out, but I think it’s highly unlikely unless he (Powell) must resign for fraud.”  

 

Amid this bizarre market turbulence, Wall Street ramped up support for Powell. Following JPMorgan CEO Jamie Dimon’s Tuesday warning that meddling with the Fed could backfire, Bank of America CEO Moynihan, Goldman Sachs CEO David Solomon, and Citigroup CEO Jane Fraser collectively voiced opposition to White House interference on Wednesday.  

 

Notably, Wednesday’s “minor” market jolt itself reflects skepticism that Trump would fire Powell. If it were to happen, market swings would likely be far more severe.  

 

Deutsche Bank forex research head George Saravelos recently predicted that if Trump forcibly removes Powell, the trade-weighted dollar could drop 3-4% within 24 hours, with U.S. Treasury markets potentially seeing a 30-40 basis point sell-off.  

Global Hotspots  

U.S. June PPI Inflation Unexpectedly Below Expectations: Tariff Impact Emerges but Not Fully Unfolded

 

Despite Trump’s tariff hikes on many trading partners, U.S. June wholesale inflation remained mild, beating market forecasts, suggesting inflationary pressure hasn’t fully erupted. Analysts note, however, that sharp declines in travel and other service prices masked rising goods costs.  

 

White House and Lawmakers Hint at “Soon Firing Powell,” Trump Responds: No Action Planned  

 

A White House official claimed President Trump may soon fire Fed Chair Powell. The official noted Trump discussed this possibility with congressional Republicans Tuesday evening. Post-meeting, Florida Republican Rep.

 

Anna Paulina Luna posted on social media: “Powell is about to be fired, and it’s happening soon.” Trump reiterated Powell “is terrible, not doing his job,” but said no action is planned, denying reports of a drafted dismissal letter.  

Company News  

Google to Host New Product Launch on August 20  

 

Google sent invitations Wednesday, confirming a launch event on August 20 to unveil new Pixel hardware. Market expectations include four new smartphones—Pixel 10, Pixel 10 Pro, Pixel 10 Pro XL, and Pixel 10 Pro Fold—plus smartwatches and earbuds, with AI as a key focus.  

 

South Korea’s Top Entertainment Mogul Faces IPO Fraud Scandal, Risks Life Imprisonment  

 

HYBE’s billionaire founder Bang Si-hyuk faces a criminal investigation by Korean prosecutors for allegedly deceiving investors before its 2020 IPO.  

 

Goldman Sachs Dominates Wall Street with Record-Breaking Stock Trading Revenue

 

Fueled by market volatility from Trump’s tariffs, Goldman Sachs’ stock trading business set a second consecutive quarterly record.

 

Wednesday’s earnings showed $4.301 billion in Q2 stock revenue, up 36% year-over-year and $600 million above estimates, driving overall profits beyond expectations.  $GS 

 

ASML Q2 Revenue Beats but Stock Plummets  

 

The world’s top chip equipment supplier ASML reported better-than-expected Q2 earnings but warned of potential 2026 growth challenges amid uncertainties. Its U.S. stock fell 8.33% on Wednesday.  $ASML 

Forex & Commodities  

International oil prices declined.  

 

At the close, WTI crude futures for the front month on NYMEX fell $0.14 to $66.38 per barrel, down 0.21%, while Brent crude futures dropped $0.19 to $68.52 per barrel, a 0.28% decline.  

 

COMEX gold futures for the front month rose $22.40, or 0.67%, to $3,359.1 per ounce.

 

The U.S. Dollar Index, measuring the dollar against six major currencies, fell 0.23% to close at 98.392 in late forex trading.  

Key Events  

Citi: Gold May Have Peaked, Expected to Fall Below $3,000 by 2026  

 

On July 16, Citigroup reported that tight physical supply and rising investment demand could push silver above $40 per ounce in coming months, raising its three-month forecast from $38 to $40 and six-to-twelve-month target from $40 to $43. It maintains its gold outlook, suggesting a peak with a projected drop below $3,000 by 2026.  

Cryptocurrency  

Major digital assets rose late Wednesday.  

 

Bitcoin gained 2.5% to $119,333, with 24-hour trading volume down 26% to $70.62 billion.  

 

Ethereum (ETH-USD), the second-largest digital asset by market cap, rose 11% to $3,362.  

 

XRP (XRP-USD) gained 6.1%, BNB (BNB-USD) climbed 3.3%, Solana (SOL-USD) jumped 8.4%, Dogecoin (DOGE-USD) advanced 8.7%, and Cardano (ADA-USD) rose 5.1%.  

 

The total market value of the cryptocurrency industry rose 3.5% in the past 24 hours to $3.8 trillion, with trading volume down 7.7% to $187.1 billion.  

Key Events  

Bank of America Prepares to Launch Stablecoin

 

Bank of America CEO Brian Moynihan said Wednesday the bank is actively planning its own stablecoin launch, with investor action expected, though no specific timeline was provided.  

Market Events and Most Anticipated Earnings Releases