ADDX GO Market Morning Wrap - 14th Aug

Stock Market  

The U.S. stock market experienced an intriguing night: most major tech stocks, including Nvidia, weakened, while small-cap stocks enjoyed a collective rally. The offsetting movements led to slight new highs for the S&P 500 and Nasdaq.  

 

 

At close, the S&P 500 rose 0.32% to 6,466.58 points, the Nasdaq Composite gained 0.14% to 21,713.14 points, and the Dow Jones Industrial Average, boosted by UnitedHealth, rose 1.04% to 44,922.27 points, just shy of its record high set last December.  

 

Most major tech stocks declined, with Microsoft, Netflix, and Meta dropping over 1%, and Google, Tesla, and Nvidia seeing modest declines. AMD rose over 5%, while Intel, Apple, and Amazon gained more than 1%. Bullish (BLSH), the parent company of CoinDesk, surged over 83% on its U.S. IPO debut, while CoreWeave fell nearly 21%, marking the worst single-day performance for a U.S. IPO to date.  

 

As large-cap stocks quieted, small-cap stocks continued their rally fueled by rate cut expectations, with the Russell 2000 index closing up 1.98%. Small-caps benefit from lower rates, as declining interest rates reduce funding costs and may boost consumer spending.  

 

With July employment and inflation data released, the market on Wednesday fully priced in a 25-basis-point Fed rate cut for September and began anticipating a larger 50-basis-point cut. U.S. Treasury Secretary Scott Bessent publicly called for “a series of rate cuts starting with a 50-basis-point reduction in September.”  

 

Ulrike Hoffmann-Burchardi, Chief Investment Officer for the Americas and Global Equity Head at UBS Wealth Management, expects the Fed to cut rates by 25 basis points at each meeting from September to January next year, totaling 100 basis points.  

 

Rick Rieder, BlackRock’s Global Fixed Income CIO and a name on the “Fed Chair shortlist,” wrote in a Tuesday client report that the latest economic data supports an aggressive easing policy by the Fed. He also believes a 50-basis-point cut in September is justified.  

Global Hotspots  

U.S. Treasury Secretary: Increased Sanctions on Russia Possible if U.S.-Russia Summit Fails

 

U.S. Treasury Secretary Scott Bessent said on August 13 local time that if the upcoming meeting between U.S. President Trump and Russian President Putin does not go well, the U.S. might impose additional sanctions or secondary tariffs on Russia.

 

In response to U.S. sanction threats, Russian Presidential Spokesman Peskov previously stated that the Russian economy has developed an “immunity” to sanctions over the years.  

 

Goldman Economist Counters Trump’s Criticism

 

Facing fierce criticism from U.S. President Trump, Goldman Sachs Chief U.S. Economist David Mericle stood by the firm’s forecast that tariffs will begin to significantly impact American consumers’ wallets. In an interview, Mericle expressed confidence in their research, stating, “We stand firmly behind the results of this study, regardless of Trump’s objections.”  

 

U.S. Treasury Secretary Bessent: Fed September Rate Cut Nearly Certain, 50 bps Highly Likely

 

On Wednesday local time, U.S. Treasury Secretary Scott Bessent indicated that, given recent weak employment data, the Fed might implement a significant 50-basis-point rate cut in September. In an interview, he said, “If we had seen these revised nonfarm payroll data in May or June, I suspect the Fed might have cut rates in June and July. This suggests a 50-basis-point cut in September is highly likely.”  

 

Bessent Confirms Fed Chair Candidate List Expanded to 11, Wall Street Titans Included

 

White House officials revealed that the Trump administration has expanded the list of potential Fed Chair successors to Powell to 11, including three previously undisclosed candidates. According to Xinhua Finance, earlier on Wednesday, U.S. Treasury Secretary Scott Bessent acknowledged in an interview that there are 10-11 candidates under consideration for the Fed Chair role.  

Company News  

Apple Plans to Launch AI Robot and New Products

 

Renowned tech leaker Mark Gurman revealed on Wednesday that a desktop robot positioned as a “virtual companion” is central to Apple’s AI strategy. The device, resembling an “iPad on a movable robotic arm” that rotates to track users in a room, is slated for a 2027 release, preceded by a smart home display launch mid-next year.

 

Amazon Enters Fresh Delivery War

 

U.S. e-commerce giant Amazon announced on Wednesday same-day delivery of fresh perishables to over 1,000 U.S. cities and towns, planning to expand to over 2,300 regions by year-end. This hit Instacart, which fell 11.51%, and DoorDash, down 3.83%. Major retailers Kroger dropped 4.38%, and Walmart fell 2.54%, while Amazon rose 1.40%.  

 

RISC-V Star Startup Backed by Chen Lizhi Raises Funds

 

Latest reports on Wednesday indicate that Rivos, a California-based chip startup, is seeking $4-5 billion to fund its first GPU launch as early as 2026. Shareholders include Intel, TSMC, MediaTek, BlackRock, Dell, and other industry giants and financial players. Rivos’ board chair is Chen Lizhi, a chip industry leader who recently countered Trump’s criticism.  

 

Bullish Surges 83% on IPO Debut

 

The cryptocurrency exchange and media company Bullish, backed by Peter Thiel, completed its IPO on Wednesday. Opening at a high of $118 (over 200% above the $37 issue price), it later moderated to close at $68 (+83.78%). As of press time, Bullish rose over 10% in after-hours trading.  

Forex & Commodities  

International oil prices fell on August 13. At close, NYMEX WTI crude futures for the current month settled down $0.52 to $62.65 per barrel, a 0.82% drop, while London Brent crude futures fell $0.49 to $65.63 per barrel, down 0.74%.  

 

COMEX gold futures for the current month rose $9.30, or 0.27%, to $3,408.3 per ounce.  

 

At New York’s close, the U.S. Dollar Index fell 0.28% to 97.80, with most non-U.S. currencies gaining.  

Key Events  

U.S. Treasury Calls for 50 bps Rate Cut in September, Futures Market Sees 0.1% Chance

 

After July inflation showed no significant rebound, U.S. Treasury Secretary Bessent urged a 50-basis-point rate cut at the Fed’s upcoming September meeting, initiating a series of cuts. He said, “Any model shows rates should be 150-175 basis points below current levels.”

 

His comments slightly raised market expectations for a 50-basis-point cut, though it remains low. The CME FedWatch tool assigns a 0.1% probability, with media estimates at 1.4%, while a 25-basis-point cut is nearly fully priced in. Louis Navellier of Navellier & Associates supports Bessent but warns the Fed may avoid a large cut to avoid signaling panic.  

Cryptocurrency  

Bitcoin (CRYPTO: BTC) surged to a new weekly high of $122,026 on Wednesday before retreating below $121,000, capping a broad crypto market advance that pushed total capitalization to $4.189 trillion.  

 

The latest milestone came as major altcoins posted double-digit gains, led by Ethereum’s (CRYPTO: ETH) strong rally toward its all-time high.

 

Ethereum was the day’s top performer, rising 10% to $4,692, just 4% below its November 2021 peak of $4,861.  

 

Solana jumped 15% to reclaim the $200 mark for the first time since late July, boosting its market cap to around $109 billion, within $10 billion of fifth-ranked BNB (CRYPTO: BNB), which rose 6% to $856.  

 

Cardano’s ADA climbed 11.7%, while Dogecoin gained 9.1%.  

Key Events  

Corporate Coin Hoarding Sparks Crypto Surge, Bitcoin and Ethereum Near All-Time Highs

 

Bitcoin and Ethereum neared record highs on Wednesday, with investors pouring unprecedented enthusiasm into these two cryptocurrencies, with recent capital flows tilting toward the latter.

 

Ethereum’s rise is driven by record inflows into funds directly investing in the token and a mushrooming of Ethereum-specific treasury institutions—companies mimicking Michael Saylor’s Bitcoin hoarding strategy, which, per StrategicEthReserve.xyz, have accumulated $17 billion in Ethereum.