ADDX GO Market Morning Wrap - 6th Aug
Stock Market
On Tuesday, the three major U.S. stock indices closed lower.
By the close, the Dow Jones Industrial Average fell 0.14% to 44,111.74 points, the S&P 500 Index dropped 0.49% to 6,299.19 points, and the Nasdaq Composite Index declined 0.65% to 20,916.55 points.
Most hot tech stocks fell, with Microsoft, Meta, and Broadcom down over 1%, Nvidia nearly 1%, while Intel rose over 3% and Amazon gained nearly 1%.
Precious and industrial metal raw materials led the gains, with Gold Fields up over 6%, Kinross Gold over 5%, Pan American Silver and Century Aluminum over 3%.
Semiconductors and stablecoin concepts weakened, with KLA Corp down over 8%, Coinbase and Circle over 6%, Lam Research over 3%, and ASML over 1%.
Early in the session, data from the Institute for Supply Management (ISM) showed the U.S. July Services PMI at 50.1, below the expected 51.5 and the previous month’s 50.8, indicating near-stagnation in services growth.
Sub-indices saw the employment indicator drop from 47.2 to 46.4, near its lowest level since the pandemic, while the index measuring prices paid for materials and services climbed to 69.9, the highest since October 2022.
Analysts suggest this report paints a picture of weak services growth under high tariffs, compounded by cautious consumer sentiment and uncertainty from Trump policies.
Chris Senyek, chief investment strategist at Wolfe Research, expects market volatility to persist through late summer, especially given unclear interest rate direction and sensitivity to upcoming economic data.
Alexandra Brown, an economist at Capital Economics, noted the ISM services survey highlights challenges the Fed will face in coming months, with a rising price index at a new cyclical high but weakening activity and employment indicators.
Additionally, U.S. stocks were hit by new tariff news. Pre-market, Trump stating he would impose “small tariffs” on imported drugs, with rates to rise to 250% later. He also plans to announce tariffs on semiconductors and chips “next week or so” without specifics.
Trump said, “In a year, at most a year and a half, the rate will rise to 150%, then to 250%, because we want drugs made in our country.” He did not disclose the initial drug tariff rate.
Global Hotspots
Up to 250%! Trump Announces ‘Small Tariffs’ on Imported Drugs
Trump issued a sudden threat. On August 5 evening, U.S. President Trump said in an interview that the U.S. will first impose “small tariffs” on imported drugs, with rates to rise to a maximum of 250% within about a year.
Israel Reportedly Considers Full Takeover of Gaza
Israel is considering expanding its military presence in Gaza, despite opposition from military leaders and most of the public due to concerns over hostages held by Hamas.
An Israeli official familiar with the matter, speaking anonymously due to sensitivity, revealed Prime Minister Benjamin Netanyahu is weighing deploying the Israel Defense Forces to the 25% of Gaza not yet under Israeli control.
Some military leaders expressed concerns, particularly about sending troops to areas believed to hold hostages.
U.S. Low-Altitude Economy Takes Key Step! Trump Admin Proposes Easing BVLOS Drone Flight Rules
The Trump administration has proposed revising current drone regulations to allow more beyond-visual-line-of-sight (BVLOS) flights for commercial drones, a boon for companies like Alphabet’s Wing and Walmart.
U.S. Transportation Secretary Sean Duffy unveiled the proposal on Tuesday, aiming to end the current case-by-case federal approval process for remote drone flights, clearing a long-standing hurdle for drone delivery businesses.
Despite Trump Tariff Threats, Indian Senior Officials to Visit Russia
Despite U.S. President Donald Trump ramping up tariff threats over New Delhi’s close ties with Moscow, informed officials revealed that senior aides to Indian Prime Minister Modi will proceed with a planned visit to Russia in the coming days.
Anonymous Indian officials disclosed that National Security Advisor Ajit Doval will visit Russia this week, with Foreign Minister S Jaishankar following later this month. The *Times of India* first reported Doval’s trip on Tuesday.
Company News
OpenAI, Google, and Anthropic Win U.S. Civilian Contract Approvals
The U.S. government’s central procurement office is adding OpenAI, Google, and Anthropic to its approved AI vendor list, accelerating AI tool adoption in federal agencies.
AMD Q2 Net Profit $781 Million, Down 31% Year-over-Year
AMD reported Q2 revenue of $7.69 billion, up 32% year-over-year, beating the $7.43 billion estimate, with an adjusted gross margin of 43%, down from 53% last year and slightly below the 43.1% forecast.
Q2 net profit was $781 million, down 31%, with adjusted EPS at $0.48, compared to $0.69 last year and below the $0.49 estimate. The company forecasts Q3 2025 revenue at approximately $8.7 billion, plus or minus $300 million.
Super Micro Computer Q4 Profit Outlook Misses Expectations
Super Micro Computer (SMCI) reported Q4 net sales of $5.76 billion, below the $6.01 billion analyst estimate, with a gross margin of 9.6% versus the 10% forecast, and adjusted EPS of $0.41, missing the $0.44 estimate.
The company projects FY 2026 net sales of at least $33 billion, above the $30.03 billion estimate, and Q1 net sales of $6 billion to $7 billion, compared to the $6.59 billion forecast.
Lucid Q2 Adjusted Loss $632.1 Million, Down 2.4% Year-over-Year
Lucid reported Q2 revenue of $259.4 million, up 29% year-over-year but below the $262.2 million estimate, with an adjusted EPS loss of $0.24 versus the $0.22 forecast, and an adjusted EBITDA loss of $632.1 million, down 2.4% from the $605.2 million estimate.
The company expects full-year vehicle production of 18,000 to 20,000 units, with actual output around 20,000.
Forex & Commodities
WTI crude futures fell 1.70% to $65.16 per barrel. Brent crude futures dropped 1.63% to $67.64 per barrel.
COMEX gold futures rose $8.30, or 0.24%, to $3,434.7 per ounce.
The U.S. Dollar Index rose 0.01% to 98.751 points.
Key Events
Wall Street ‘Gold Bears’ Rare Shift to Bullish, Gold Prices May Hit New Highs?
With rising Fed rate cut expectations, gold is regaining favor as a safe-haven asset.
Recently, Citi, long dubbed a “gold bear” on Wall Street, reversed its bearish stance, raising its three-month gold price forecast from $3,300 per ounce in June to $3,500, with a trading range adjusted from $3,100-$3,500 to $3,300-$3,600.
Cryptocurrency
Major digital assets fell on Tuesday.
Bitcoin shed 1.1% to $113,419, with its 24-hour trading volume surging 9.1% to $60.32 billion.
Ethereum (ETH-USD) fell 2.9% to $3,563.
XRP (XRP-USD) lost 2.9%, BNB (BNB-USD) declined 1.6%, and Solana (SOL-USD) fell 1.7%.
Dogecoin (DOGE-USD) shed 3.2%, and Cardano (ADA-USD) dropped 3.1%.
The total market value of the cryptocurrency industry declined 1.4% in the past 24 hours to $3.7 trillion, with trading volume up 10.3% to $147.52 billion.
Key Events
Crypto Giant Coinbase Plans $2 Billion Convertible Bond, Stock Plunges
U.S.’s largest crypto exchange Coinbase announced plans to issue $2 billion in convertible bonds to raise funds, the latest in a wave of crypto financing.
The proceeds are intended for stock buybacks or debt repayment. The news triggered a 5.7% pre-market drop in Coinbase’s stock, hitting a low below $300, the weakest since June 24.
Strategy Unfazed by Highs, Buys More Bitcoin, Holdings Top $71 Billion
Billionaire Michael Saylor strikes again, with his software firm Strategy (formerly MicroStrategy) buying Bitcoin near record highs, wielding capital unmatched by other crypto firms.
Strategy’s 8-K filing on Monday (August 4) revealed a $2.46 billion Bitcoin purchase last week, the third-largest since starting acquisitions five years ago.
The SEC filing shows the company added 21,021 Bitcoin from July 28 to August 3, bringing its total to 628,791, valued at over $71 billion at current prices.
Market Events and Most Anticipated Earnings Releases
