ADDX GO Market Morning Wrap - 13th Aug

Stock Market  

Fueled by a well-balanced CPI report, all three major U.S. stock indices rose more than 1%, with the S&P 500 and Nasdaq hitting all-time highs.

 

At close, the S&P 500 rose 1.13% to 6,445.76 points, the Nasdaq Composite gained 1.39% to 21,681.9 points, and the Dow Jones Industrial Average increased 1.1% to 44,458.61 points.

 

Major tech stocks broadly advanced, with Intel up over 5%, Meta rising more than 3% and nearing a $2 trillion market cap, and Apple, Microsoft, and Google up over 1%. Tesla, NVIDIA, Amazon, and Netflix saw modest gains, with Meta and NVIDIA both hitting new closing highs.  

 

Alexandra Wilson-Elserdo, co-CIO of Multi-Asset Solutions at Goldman Sachs Asset Management, commented: “The Fed’s policy stance is highly data-dependent; with inflation under control and growing signs of a softening labor market in employment data, the focus will now shift more toward jobs.

 

This inflation data supports a precautionary rate cut in September, which will be a key market driver.” In Tuesday’s trading, small-cap stocks, seen as primary beneficiaries of rate cuts, led gains, with the Russell 2000 index up nearly 3%.  

 

However, July was far from the end of this round of tariff disruptions, and today’s rally cannot mask looming concerns. Even if the Fed cuts rates in September, the situations in October and December remain uncertain.  

 

(After Tuesday’s CPI data release, traders’ bets on a September rate cut exceed 90%, source: CME)  

 

Greg McBride, chief financial analyst at Bankrate, said: “This could be the calm before the storm. A series of tariffs take effect this month, and it may take months for those costs to fully pass through to consumers, with inflation likely to rise further in the remainder of 2025.”  

Global Hotspots  

White House: U.S. and Russian Presidents to Meet One-on-One in Anchorage

 

On August 12 local time, the White House announced that U.S. President Trump and Russian President Putin will meet in Anchorage, Alaska, on August 15. The White House noted the meeting will be one-on-one, with potential future plans for Trump to visit Russia.  

 

Trump Fires Shots at Powell Post-CPI

 

On Tuesday, August 12 local time, President Trump posted on Truth Social, demanding Federal Reserve Chair Powell cut rates immediately and accusing him of “always acting too late.” Trump claimed the damage to the U.S. economy is immeasurable, adding, “Fortunately, we’ve broken through Powell and the complacent board.”

 

Last week, Trump nominated Stephen Milan to fill the vacancy left by Kugler’s sudden resignation.  

 

Statistical Process Concerns: Nominee BLS Chief Suggested Pausing Monthly Nonfarm Reports

 

With President Trump nominating conservative economist E.J. Anthony as BLS chief, debates over nonfarm data accuracy have resurfaced. In pre-confirmation talks on Tuesday, Anthony hinted at pausing monthly nonfarm data releases, proposing quarterly updates during a revision of compilation methods.  

Company News  

Following OpenAI’s Lead! Anthropic Offers Claude Enterprise to U.S. Government for $1

 

On Tuesday local time, AI startup Anthropic announced it will provide its Claude Enterprise version to U.S. government agencies for a symbolic $1 per year, removing barriers to AI adoption.

 

This follows OpenAI’s similar move last week to offer ChatGPT Enterprise to federal agencies for $1. Large AI firms have been deepening ties with policymakers and regulators in recent months.

 

AI Upstart Perplexity Makes Bold Move: Eyes $34.5B Chrome Acquisition

 

U.S. AI startup Perplexity AI confirmed it has made a $34.5 billion offer to Alphabet, Google’s parent, to acquire the Chrome browser. Perplexity did not disclose funding plans, though the bid—modest yet daring—far exceeds its own valuation, signaling a high-risk strategy.  

 

AI Disruption Sparks Software Industry Fears! “Europe’s Stock King” Leads Plunge, $163B Wiped Out

 

On Tuesday local time, after SaaS firm Monday.com Ltd. reported earnings and plummeted 30%, European investors dumped local software stocks.

 

SAP, Europe’s highest-valued company and one of Germany’s “Big Seven,” dropped 6.76%, erasing €19.5 billion  in market value. Sage Group in the UK fell nearly 5%, and France’s Dassault Systèmes declined 1.62%.  

 

Kodak Century-Old Giant: “We May Not Last Much Longer”

 

In its post-market earnings release on Monday, the 133-year-old imaging giant Eastman Kodak warned of no viable financing or liquid assets to cover its $500 million in maturing debt, raising serious doubts about its ongoing viability. Kodak shares crashed 19.91% on Tuesday.  

 

Circle’s First Post-IPO Report Beats Expectations

 

Pre-market on Tuesday, “the first stablecoin stock” Circle released its initial earnings since its U.S. listing, posting a Q2 loss but revenue growth exceeding forecasts. Revenue hit $658 million, up 53% year-over-year, beating the $647.3 million analyst estimate.

 

Despite a solid report and a 1.27% daily gain, Circle fell over 6% post-market after announcing a sale of 10 million shares.  

 

CoreWeave Losses Widen Significantly

 

Post-market on Tuesday, NVIDIA-backed data center operator CoreWeave reported a Q2 adjusted net loss of $130.8 million, up from $5 million last year, far exceeding the $96.3 million analyst loss forecast. Revenue tripled to $12.1 billion, topping the $10.8 billion expectation. As of writing, CoreWeave shares dropped over 10% post-market, with a call scheduled to discuss guidance.  

Forex & Commodities  

WTI crude futures fell 1.24% to $63.17 per barrel. Brent crude futures dropped 0.77% to $66.12 per barrel.  

 

COMEX gold futures for the current month fell $5.70, or 0.17%, to $3,399.0 per ounce.  

 

At New York’s close, the U.S. Dollar Index dropped 0.44% to 98.07, with most non-U.S. currencies gaining.  

Key Events  

OPEC Monthly Report Adjusts 2026 Global Oil Demand Growth to 1.38M B/D

 

OPEC maintained its 2025 global oil demand growth forecast at 1.29 million barrels per day but raised the 2026 forecast from 1.28 million to 1.38 million barrels per day. It also upped its 2025 global GDP growth projection to 3% from 2.9%, keeping 2026 at 3.1%.  

Cryptocurrency  

Bitcoin edged up to $120,099.99.

 

Ethereum (ETH-USD) surged 8.43% to $4,576.40. XRP (XRP-USD) rose 4.37%, BNB (BNB-USD) gained 4.00%, and Solana (SOL-USD) jumped 9.71%.

 

Dogecoin (DOGE-USD) climbed 5.26%, and Cardano (ADA-USD) rose 9.06%. 

Key Events  

Man Behind Last Crypto Crash Pleads Guilty, Faces Over a Decade in Prison

 

On Tuesday local time, infamous former crypto mogul Do Kwon pleaded guilty to two fraud charges in a New York federal court.

 

The 33-year-old founder of algorithmic stablecoin TerraUSD (UST) and sister token Luna saw a $40 billion market value evaporate in a week in May 2022, triggering the “crypto winter”—a collapse of wild-west-era assets that lasted until FTX’s November downfall.