ADDX GO Market Morning Wrap - 5th Aug

Stock Market  

On Monday (August 4), U.S. stocks opened higher and closed with gains, with all three major indices posting increases.

By the close, the Dow Jones Industrial Average rose 1.34% to 44,173.64 points, the Nasdaq Composite Index gained 1.95% to 21,053.58 points, and the S&P 500 Index climbed 1.47% to 6,329.94 points, marking the largest single-day gain since May.  

 

All three indices recouped most of Friday’s losses. Of the 30 Dow components, 28 rose, with only Amazon and Chevron declining. Among S&P 500 stocks, the advance-decline ratio exceeded six to one.  

 

Hot tech stocks rallied, with Nvidia, Google, Meta, and Broadcom up over 3%, and Tesla and Microsoft gaining more than 2%.

 

Precious metals, coking coal, and cryptocurrencies led the gains, with Gold Fields up over 10%, U.S. Gold Corp and  Americas Gold And Silver over 8%, Robinhood, Strategy, and Coeur Mining up over 6%, and Pan American Silver up over 4%.  

 

Sam Stovall, chief investment strategist at CFRA Research, commented, “Today was a rebound day—stocks often bounce back after a drop, and that’s what we saw today.”  

 

Stovall noted, “We need to watch closely to see what happens tomorrow, as investors might think, ‘You know, we really need to take some profits off the table.’”  

 

Chris Larkin, head of trading at Morgan Stanley, said this week’s economic data is relatively quiet, so traders may look to corporate earnings and new developments in tariffs and trade for cues.  

 

Early in the session, U.S. President Trump posted on social media, claiming India is buying large amounts of Russian oil and reselling most of it on the open market for profit. He stated he would significantly increase tariffs on India’s exports to the U.S.  

 

India’s Ministry of External Affairs spokesperson Randhir Jaiswal issued a statement, saying, “The accusations against India are manifestly unfair. India, like all major economies, will take all necessary measures to safeguard its national interests and economic security.”  

 

Larkin also pointed out a key question now is whether traders will view any signs of economic weakness as a market negative or as a catalyst for earlier Fed rate cuts.  

 

Shortly before publication, San Francisco Fed President Mary Daly said the time for rate cuts is nearing, with two cuts this year remaining an appropriate adjustment. She expressed satisfaction with the Fed’s July decision but would be less satisfied with repeating it.  

Global Hotspots  

Texas GOP Governor Orders Arrest of Democrat Lawmakers Fleeing State  

 

Texas Republican Governor Greg Abbott ordered the arrest of Democratic lawmakers who fled the state to block a new congressional redistricting map, which could affect Republican chances in next year’s midterms.  

 

Trump Vows Steep Tariff Hike on India  

 

U.S. President Trump posted on social media, alleging India buys large quantities of Russian oil and resells most of it for profit, announcing plans to significantly raise tariffs on Indian exports to the U.S.  

 

India Responds to Trump’s Threat  

 

Regarding U.S. President Trump’s threat to sharply increase tariffs on India and U.S.-EU accusations of India importing and reselling Russian oil post-Russia-Ukraine conflict, India’s Ministry of External Affairs spokesperson Randhir Jaiswal issued a statement on August 4, saying, “The accusations against India are manifestly unfair.

 

India, like all major economies, will take all necessary measures to safeguard its national interests and economic security.”

 

The statement noted India’s shift to Russian oil was a passive choice—traditional suppliers diverted to Europe after the conflict, and the U.S. had previously supported this to stabilize global energy markets.

 

It emphasized India’s imports aim to ensure affordable energy for its citizens, a necessary move amid global market volatility.  

 

Trump Claims Jobs Report Data Fabricated to Favor Democrats  

 

U.S. President Trump posted on Truth Social, alleging last week’s jobs report was manipulated.

 

He claimed both reports underwent massive, record-breaking revisions favoring Democrats, suggesting these adjustments masked fabricated political data to downplay Republican victories.  

 

Brazil Supreme Court Orders House Arrest for Former President Bolsonaro  

 

On August 4, Brazilian Federal Supreme Court Justice Alexandre de Moraes ordered former President Jair Bolsonaro placed under house arrest for illegally using his three sons’ and other congressional allies’ social media accounts to spread content “clearly encouraging and inciting attacks on the Federal Supreme Court and openly supporting foreign interference in Brazil’s judicial system.”  

Company News  

Tesla Approves 96 Million Share Award for Elon Musk  

 

SEC filings show Tesla approved a 96 million share award for Musk, who will purchase the granted shares at $23.34 each.  

 

Apple’s ‘Mind-Controlled’ iPad Tech Unveiled in Real Demo  

 

Apple’s brain-computer interface partner Synchron released a video on Monday, showcasing the first real-world use of BCI human-machine interaction standards. The demo featured an ALS patient controlling an iPad with their mind, including using “Shortcuts” via the brain-computer interface.  

 

Google Signs Deal to Cut AI Data Center Power During Peaks  

 

Google has agreed with Indiana Michigan Power (I&M) and the Tennessee Valley Authority (TVA) to reduce power usage at its data centers when requested by these utilities.  

 

Lyft Partners with Baidu to Launch Robotaxi in Europe Next Year  

 

U.S. ride-hailing company Lyft and Baidu announced a partnership on Monday to deploy autonomous taxis in Europe starting next year, beginning in the UK and Germany, with Baidu’s sixth-generation mass-produced RT6 vehicle operating on Lyft’s platform pending regulatory approval.  

Forex & Commodities  

WTI crude futures fell 1.54% to $66.29 per barrel. Brent crude futures dropped 1.31% to $68.76 per barrel.  

 

COMEX gold futures rose 0.85% to $3,428.6 per ounce. COMEX silver futures gained 1.4% to $37.445 per ounce.  

 

The U.S. Dollar Index rose 0.04% to 98.738 points.  

Key Events  

Survey Shows OPEC Output Stable as Saudi Cuts Offset UAE Gains  

 

A survey indicates OPEC crude output remained stable last month, as Saudi cuts offset further UAE production increases. Output averaged 28.31 million barrels per day in July, unchanged from the prior month. Saudi reduced output by 220,000 barrels per day to 9.53 million, partially offsetting June’s increase to shift supply during the Israel-Iran conflict.

 

UAE’s increase was about half of Saudi’s cut. OPEC and its allies have rapidly restored paused output in recent months to reclaim global market share, driving crude prices lower, with Brent futures hovering near $68 per barrel.  

Cryptocurrency  

Major digital assets rose on Monday.  

 

Bitcoin gained 0.3% to $114,762, with its 24-hour trading volume up 6.5% to $54.39 billion.  

 

Ethereum (ETH-USD) climbed 4.9% to $3,670.  

 

XRP (XRP-USD) rose 4.3%, BNB (BNB-USD) gained 1%, and Solana (SOL-USD) increased 2.1%. Dogecoin (DOGE-USD) rose 2.6%, and Cardano (ADA-USD) added 2.4%.  

 

The total market value of the cryptocurrency industry rose 1.3% in the past 24 hours to $3.75 trillion, with trading volume up 18% to $133.8 billion.  

Key Events  

Strategy Adds to Bitcoin Holdings, Total Exceeds $71 Billion  

 

Strategy disclosed in an 8-K filing on Monday that it added 21,021 Bitcoin from July 28 to August 3, bringing its total holdings to 628,791 Bitcoin, valued at over $71 billion at current prices.  

Market Events and Most Anticipated Earnings Releases