ADDX GO Market Morning Wrap - 25th July
Stock Market
Major indices were mixed, with Nasdaq and S&P 500 hitting new highs. Alphabet’s earnings showed robust AI demand, boosting investor confidence. Tech stocks were mixed: Tesla down over 8%, IBM down over 7%, Nvidia, Amazon, and Broadcom up over 1%.
Semiconductors and oil/gas gained, with Pixelworks up over 7%, AMD up over 2%, ASML and Micron up over 1%. Auto and space stocks led losses, Lotus down over 5%, Honda and Virgin Galactic down over 2%.
Data showed U.S. initial jobless claims fell for the sixth straight week, the longest drop since 2022, making labor market trends a key Fed focus next week. Morgan Stanley’s Chris Larkin said, “No major labor cracks yet; if this holds, it weakens the case for Fed rate cuts.”
Trade optimism lifted markets as EU-U.S. deal hopes grew, despite a $93B EU tariff vote. Baird’s Ross Mayfield noted Alphabet’s earnings, given tech’s scale, offer timely AI return proof amid market doubts.
Investors also watched the Trump-Fed tug-of-war. The White House announced Trump’s Thursday Fed visit post-market, seen as pressure on Powell. Trump called talks productive, ruling out Powell’s firing. Markets expect no rate change next week, with a 60% September cut chance per CME’s FedWatch.
Global Hotspots
Trump Visits Fed, Pushes Powell for Rate Cuts
President Trump visited the Fed on July 24, calling talks with Powell “productive.” He urged a 3% rate cut to 1%, saving $1T, and will monitor the committee’s rules.
Putin: Russia to Modernize Navy Fully
Per Xinhua, Putin said at a submarine flag-raising in Arkhangelsk on July 24 that Russia will fully modernize its navy to secure global interests.
Macron: France to Recognize Palestine in September
President Macron announced on July 24 that France will formally recognize Palestine in September at the UN, urging a Gaza ceasefire and hostage release.
Poland Exits Ottawa Landmine Treaty
President Duda signed a bill on July 24 to exit the 1999 Ottawa Treaty banning landmines, passed unanimously last week.
Company News
Rumor: GPT-5 May Launch Early August
Amid OpenAI CEO Altman’s hints, reports suggest GPT-5, including mini and nano versions, could debut by early August, with full and mini via ChatGPT/API, nano via API only.
LVMH Q2 Sales Slump Signals Luxury Slowdown
LVMH reported a 4% organic revenue drop to €19.5B in Q2, with fashion/leather down 9% to €9B, warning the luxury sector.
BP Ditches $36B Green Hydrogen Project for Profits
BP will exit its planned Australian hydrogen project, prioritizing fossil fuels and profitability.
Forex & Commodities
WTI crude up 1.2% to $66.03/barrel; Brent up 1% to $69.18/barrel.
COMEX gold down 0.77% to $3,371.3/oz; silver down 0.55% to $39.285/oz.
Dollar index up 0.29% to 97.49, most non-U.S. currencies down.
Key Events
World Gold Council: Sovereign Funds Join Gold Buying
EMEA analyst Krishan Gopaul said Azerbaijan’s SOFAZ bought 16 tons in Q2, totaling 35 tons this year, reaching 181 tons (29% of portfolio).
Cryptocurrency
Major digital assets rose broadly Thursday.
Bitcoin up 0.6% to $119,097, volume up 11.9% to $74.49B.
Ethereum up 3.9% to $3,746.
XRP up 0.7%, BNB up 1%, Solana down 0.2%. Dogecoin down 1.5%, Cardano up 0.4%.
Crypto market cap up 0.8% to $3.89T, volume up 6.8% to $212.1B.
Key Events
Tesla Offloads 75% of Bitcoin at Low, Misses $B Gain
Tesla sold 75% of its $1.5B Bitcoin in 2022’s crash, missing an 80% rally. Holdings rose to $1.24B from $722M, per Wednesday’s earnings.
