ADDX GO Market Morning Wrap - 7th Aug

Stock Market  

On Wednesday, influenced by Apple’s strong performance, the three major U.S. stock indices closed higher.  

By the close, the Dow Jones Industrial Average rose 0.18% to 44,193.12 points, the S&P 500 Index gained 0.73% to 6,345.06 points, and the Nasdaq Composite Index climbed 1.21% to 21,169.42 points.  

 

Most hot tech stocks rose, with Apple up over 5%, Amazon up 4%, Tesla up over 3%, and Broadcom up nearly 3%. Leading retailers and consumer electronics sectors saw gains, with Shopify up over 21%, Walmart up over 4%, Ross Stores up over 3%, and Costco and Kohl’s up over 2%.

Weight-loss drugs and chemicals lagged, with Dow Chemical down over 4%, Novo Nordisk down nearly 4%, and Eli Lilly down over 2%. Due to disappointing results, AMD fell over 6%, Super Micro Computer dropped over 18%, and Snap plummeted over 17%.  

 

Jose Torres, senior economist at Interactive Brokers, said, “As investors shift focus from turbulent trade dynamics and weak economic data to robust corporate earnings, the market is thriving with a risk-on attitude.”  

 

Torres added, “Apple’s announcement of a $100 billion U.S. investment has further ignited ‘animal spirits,’” referring to excessive optimism or pessimism in market sentiment.  

Meanwhile, financial markets are anticipating an imminent Fed rate cut. The CME FedWatch Tool shows a 93.6% probability of a 25-basis-point cut in September, with less than a 7% chance of no action.  

 

Earlier in the session, Minneapolis Fed President Neel Kashkari noted the U.S. economy is slowing, suggesting, “In the short term, adjusting the federal funds rate might be appropriate.”  

 

San Francisco Fed President Mary Daly indicated policymakers may need to adjust rates “in the coming months” to prevent further deterioration in hiring.  

Global Hotspots  

Trump Says U.S. Will Impose ~100% Tariffs on Chips and Semiconductors  

 

On August 6 local time, U.S. President Trump stated the U.S. will impose approximately 100% tariffs on chips and semiconductors.  

 

Trump added that no fees will apply if manufactured in the U.S.  

 

Insiders: Trump Plans Meetings with Putin and Zelensky Next Week  

 

Two informed sources revealed that U.S. President Trump informed European leaders he plans to meet Russian President Putin face-to-face as early as next week, followed by a trilateral meeting with Putin and Ukrainian President Zelensky.

 

Sources say Trump disclosed this during a call with European leaders on the 6th, with the talks limited to the three leaders, excluding any European representatives.  

 

Trump Promises More Secondary Sanctions on Russia  

 

Trump announced plans for additional secondary sanctions on Russia.

 

On July 29, he set a 10-day deadline for Russia and Ukraine to reach a peace deal, starting that day, with new U.S. sanctions looming if no progress is made. The current deadline for completing Russia-Ukraine talks is August 8.  

 

Trump Imposes Additional 25% Tariff on India  

 

The White House stated that U.S. President Trump signed an executive order imposing an additional 25% tariff on goods from India, citing India’s continued “direct or indirect importation of Russian oil.” On August 4, Trump said the U.S. will significantly raise tariffs on Indian imports due to India’s large purchases of Russian oil for profit.  

 

Fed’s Kashkari: Rate Cut May Be Appropriate Soon, Waiting for Tariff Clarity Unrealistic  

 

Minneapolis Fed President Neel Kashkari said the U.S. economy is slowing, making a rate cut in the short term an appropriate option. In an interview on August 6, he stated, “The economy is slowing. In the short term, adjusting the federal funds rate might be appropriate.”  

Company News  

Apple to Hire 20,000 in U.S., Accelerates Production via New ‘Made in America’ Plan  

 

Apple announced it will hire 20,000 people in the U.S. over the next four years, part of a $25 billion commitment within a $600 billion expansion plan.

 

Collaborating with suppliers, the new “Made in America” initiative accelerates domestic production, with initial partners including Corning, GlobalWafers, Applied Materials, Texas Instruments, and Samsung.

 

Corning will dedicate its Harrodsburg plant to Apple, increasing Kentucky staff by 50%.

 

Applied Materials Joins Apple and Texas Instruments to Strengthen U.S. Chip Industry  

 

Applied Materials announced it will partner with Apple and Texas Instruments to bolster U.S. chip manufacturing, supplying U.S.-made equipment from its Austin facility to TI’s domestic production sites for Apple product semiconductors.

 

The company plans a $200 million+ investment in Arizona for an advanced manufacturing plant to produce key semiconductor equipment components.  

 

Novo Nordisk Addresses Market Share Drop: Weight-Loss Drug Sales Growing in China  

 

During a post-earnings investor call, Novo Nordisk’s current international business VP and incoming CEO (effective August 7) Maziar Mike Doustdar responded to concerns about competition for semaglutide in China.

 

He noted a decline in GLP-1 diabetes drug sales but said weight-loss drug sales are steadily increasing. He attributed the diabetes drug drop to dealer inventory shifts, while the recently approved semaglutide weight-loss drug is still ramping up, not yet penetrating tier-2, -3, and -4 cities.  

 

Blackstone Strikes $500 Million Strategic Financing Deal with MannKind  

 

On August 6, Blackstone announced a strategic financing agreement with biopharma firm MannKind for up to $500 million in non-dilutive capital to support its short- and long-term growth strategies.  

Forex & Commodities  

COMEX gold futures fell 0.08% to $3,431.8 per ounce. COMEX silver futures rose 0.3% to $37.935 per ounce.  

 

WTI crude futures dropped 1.24% to $64.35 per barrel. Brent crude futures fell 1.11% to $66.89 per barrel.  

 

The U.S. Dollar Index declined 0.53% to 98.229.

Key Events  

India Rejects U.S. Tariff Hike Over Russian Oil Imports  

 

Indian Ministry of External Affairs spokesperson Randhir Jaiswal issued a statement, again refuting U.S. tariff increases on Indian exports citing Russian oil imports. The statement noted the U.S. has recently targeted India’s oil purchases, but India’s stance is clear—imports are market-driven to ensure energy security for its 1.4 billion people.  

Cryptocurrency  

Major digital assets rose on Wednesday.  

 

Bitcoin rose 1.5% to $115,181, with its 24-hour trading volume down 5.6% to $57 billion.  

 

Ethereum (ETH-USD) rose 3.1% to $3,674.  

 

XRP (XRP-USD) gained 1.7%, BNB (BNB-USD) climbed 3.2%, and Solana (SOL-USD) was up 3.4%.  

 

Dogecoin (DOGE-USD) surged 3.8%, and Cardano (ADA-USD) increased 3%.  

 

The total market value of the cryptocurrency industry rose 1.8% in the past 24 hours to $3.76 trillion, with trading volume down 10.7% to $131.96 billion.  

Key Events  

Wall Street Bull Predicts: Bitcoin ‘Whale’ Strategy Could Be U.S.’s Largest Company  

 

Tom Lee, a top Wall Street bull and former JPMorgan chief equity strategist, predicted on Tuesday that Michael Saylor’s Bitcoin-heavy firm Strategy could become the U.S.’s largest company, especially if Bitcoin hits $1 million.