ADDX GO Market Morning Wrap - 19th Aug

Stock Market  

On Monday Eastern Time, the three major U.S. stock indexes closed nearly flat, lacking a clear direction throughout the day.

 

 

Investors are awaiting earnings reports from several major retailers to gauge the consumer response to trade uncertainties and inflation expectations; meanwhile, the Jackson Hole global central bank symposium is set to open, with the market holding its breath in anticipation.  

 

Large-cap tech stocks were mixed, with Intel dropping over 3%, ending a six-day winning streak; Meta fell more than 2%, while Apple, Microsoft, and Google saw slight declines; Tesla rose over 1%, and Netflix, Nvidia, and Amazon posted modest gains.

 

GoodRx surged over 37%, marking its best single-day performance since September 2020; Novo Nordisk had a “price-cut day,” announcing a partnership with this weight-loss drug maker in the U.S. market. Dayforce rose about 26%, with market news suggesting private equity firm Thoma Bravo is in talks to acquire this human resource management software company.  

 

Retail giants like Walmart, Home Depot, and Target will release earnings this week, with their performance seen as a key window into the resilience of U.S. consumers.  

 

Additionally, the global central bank symposium, held from August 21 to 23 in Jackson Hole, Wyoming, is highly anticipated, with Fed Chair Jerome Powell set to deliver a speech, with the market hoping for clearer guidance on the economic outlook and policy framework.  

 

The U.S.-Ukraine leaders’ meeting held at the White House on Monday failed to stir market volatility.

 

U.S. President Trump and Ukrainian President Zelensky exchanged views on the Russia-Ukraine conflict but made no breakthrough progress. The earlier summit between Trump and Russian President Putin also yielded no substantial results, with Trump suggesting he might call Putin again and hinting at a possible trilateral meeting.  

 

Argent Capital portfolio manager Jed Ellerbroek said: “The market is relatively calm today as investors prepare for upcoming events. The most critical catalyst will be Powell’s speech, and we expect him to update his take on the current ‘high inflation plus rising unemployment’ scenario.”  

 

Data released last Friday showed U.S. retail sales grew as expected overall, but consumer confidence was dented by heightened inflation concerns. On Monday, the National Association of Home Builders (NAHB) housing market index fell to its lowest level since December 2022.  

 

Investors currently expect a 25-basis-point Fed rate cut in September, but expectations for another cut this year have cooled.

 

Recent data suggests that while U.S. tariff hikes have not fully passed through to consumer prices, a softening labor market may push the central bank toward a more dovish stance.  

 

Chris Larkin, an analyst at Morgan Stanley’s E*Trade, noted: “The market is betting that signals of a weak labor market will outweigh inflation risks in the Fed’s rate-cut debate.

 

While this week’s retail earnings are noteworthy, the FOMC minutes and Powell’s Jackson Hole speech will be key to gauging the central bank’s leanings.”  

Global Hotspots  

Trump Calls Putin, Supports Direct Russia-Ukraine Talks

 

According to News, Russian Presidential Aide Yushakov stated that U.S. President Trump spoke with Russian President Putin on the 18th for about 40 minutes. Yushakov described the call as frank and highly constructive. Both Putin and Trump expressed support for direct negotiations between Russia and Ukraine’s delegations. They also discussed raising the level of representatives in these talks.  

 

Trump Interrupts Multilateral Meeting to Call Putin

 

According to Germany’s Bild newspaper, U.S. President Trump interrupted a meeting with European, EU, and NATO leaders at the White House on the afternoon of August 18 local time to call Russian President Putin.  

 

German Breweries in Crisis Young People Prefer Non-Alcoholic Options

 

A report from the German Federal Statistical Office released earlier this month showed that beer sales in Germany dropped 6.3% year-over-year in the first half of 2025, the lowest since records began in 1993, with a similar decline only seen in the first half of 2020 during the COVID-19 outbreak.  

 

It’s worth noting that the Gen Z “sobriety trend” isn’t unique to Germany; across Europe and the U.S., young people are drinking less. Reasons include lower disposable income than previous generations, a growing wellness trend, and increased awareness of alcohol-related health risks.  

 

Hamas Confirms Agreement to Latest Gaza Ceasefire Proposal

 

The Palestinian Islamic Resistance Movement (Hamas) issued a statement on the 18th, announcing that multiple Palestinian factions, including Hamas, have agreed to the latest ceasefire proposal for the Gaza Strip mediated by Egypt and Qatar.  

 

Norway’s Sovereign Wealth Fund to Further Divest Israel-Related Holdings

 

Norway’s sovereign wealth fund recently announced it will sell more shares in Israeli companies in response to criticism that its investments in Israeli firms “fund” the Gaza conflict.

 

Last week, the Norges Bank Investment Management (NBIM, the fund’s official name) stated on its website that it had sold all Israeli company stocks not included in the benchmark index. On Monday local time, NBIM published a letter to the Norwegian Ministry of Finance on its website, noting that as of August 14, the fund had invested 19 billion NOK in 38 Israeli-listed companies, a decrease of 4 billion NOK and 23 companies compared to June 30.  

Company News  

Data Center Operator TeraWulf Soars, Google Stake Nearly Doubles to 14%

 

TeraWulf announced on its website that AI cloud platform Fluidstack will expand its Lake Mariner data center campus in western New York, adding a new dedicated data center building, “CB-5,” expected to operate by mid-2026.

 

The press release stated that the new CB-5 lease will see Google provide TeraWulf with $1.4 billion in incremental guarantees, bringing the total to about $3.2 billion—raising Google’s stake in TeraWulf from 8% to 14% and allowing Google to purchase an additional 32.5 million shares. TeraWulf rose over 19% to $10.71 in early trading, the highest since March 2022.  

 

CHIPS Act Subsidy to Equity Investment? Trump Admin Reportedly to Buy 10% of Intel

 

According to media citing White House officials and insiders, the Trump administration is negotiating with Intel to acquire about 10% of its shares. If the deal goes through, the U.S. federal government would become the chipmaker’s largest shareholder.

 

Insiders say the government is considering a potential investment in Intel, which could involve converting part or all of the company’s CHIPS and Science Act funding into equity. Intel closed down 3.7% amid the news, though it surged 23% last week—the best weekly performance since February—fueled by acquisition rumors.  

 

Novo Nordisk Slashes Ozempic Price in U.S.

 

On Monday local time, Danish pharmaceutical giant Novo Nordisk announced that its bestselling diabetes drug Ozempic is now available to cash-paying patients in the U.S. for less than half its original price. This move comes amid growing political pressure in the U.S. for pharmaceutical companies to lower drug prices.

 

Without insurance or other discounts, Ozempic’s list price in the U.S. market is around $1,350 per month.

 

Now, cash-paying patients can purchase it for $499 per month. According to Novo Nordisk’s announcement, self-pay patients can buy the drug through channels including the drug’s official website, the Novo Nordisk Patient Assistance Program, and the company’s recently launched direct-to-consumer online pharmacy.  

Forex & Commodities  

WTI September crude futures rose 0.99% to $63.42 per barrel; Brent October crude futures gained 1.14% to $66.60 per barrel.  

 

COMEX gold futures fell 0.12% to $3,378.6 per ounce; COMEX silver futures rose 0.24% to $38.065 per ounce.  

 

At New York’s close, the U.S. Dollar Index rose 0.31% to 98.16, with most non-U.S. currencies declining.  

Key Events  

Bearish Fundamentals Gain Upper Hand, Crude Prices May Face Long-Term Pressure

 

Since entering August, the international crude oil market has seen a dramatic shift, with prices plummeting. U.S. WTI crude futures and Brent crude futures have fallen over 10% from their late-July highs, while China’s main crude futures contract has dropped below the critical 500 yuan/barrel mark, signaling a shrinking bullish force and a growing bearish sentiment.  

 

Industry experts suggest that short-term developments in the Russia-Ukraine situation may disrupt the crude market. However, with OPEC+ continuing to increase oil production and global economic growth remaining sluggish, limiting oil consumption, the market is expected to face an oversupply situation, which will suppress oil prices in the medium to long term.  

Cryptocurrency  

Major digital assets fell on Monday.

 

Bitcoin shed 1.1% to $116,300, with its 24-hour trading volume surging 49.9% to $70.2 billion.

 

Ethereum (ETH-USD) fell 2.4% to $4,355. XRP (XRP-USD) lost 0.7%, BNB (BNB-USD) declined 1%, and Solana (SOL-USD) fell 4.5%.

 

Dogecoin (DOGE-USD) shed 4%, while Cardano (ADA-USD) dipped 3.8%.  

 

The total market value of the cryptocurrency industry declined 1.5% in the past 24 hours to $3.93 trillion, with trading volume up 53.9% to $191.11 billion.  

Key Events  

Bitcoin to Enter Bear Market Next Year? Veteran Warns of Lack of Confidence in Macro Outlook

 

Steven McClurg, CEO of crypto asset management firm Canary Capital, said last week that Bitcoin could peak at $150,000 in this upcycle before entering a downturn.

 

His primary reason for this view is his lack of confidence in the macroeconomic outlook. Thus, not only will Bitcoin face another bear market next year, but a broader economic bear market is also on the horizon.