ADDX GO Market Morning Wrap - 20th Aug
Stock Market
On Tuesday Eastern Time, U.S. stock indices closed with mixed results as investors held their breath awaiting Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Economic Symposium, hoping to glean the latest signals on interest rate paths.
Most major tech stocks declined, with AMD dropping over 5%, Nvidia falling more than 3%—its largest single-day drop since April 21—and Netflix and Meta each down over 2%.
Tesla, Microsoft, and Amazon slipped more than 1%, while Apple and Google saw modest declines. Intel surged approximately 7% after SoftBank Group announced a $2 billion equity investment.
Viking Therapeutics (VKTX) plummeted over 42%, marking the worst single-day performance since its U.S. IPO.
The week’s spotlight is undoubtedly the Federal Reserve’s annual symposium in Jackson Hole, Wyoming, from August 21-23. Every word from Powell will be scrutinized by markets for insights into the central bank’s latest views on the economic outlook and monetary policy.
James Cox, managing partner at Harris Financial Group, said: “Investors seem to be hedging ahead of Jackson Hole, fearing Powell’s stance might be more hawkish than markets expect.”
Interest rate futures suggest the Fed will cut rates twice this year, by 25 basis points each, with the first cut likely in September.
Steve Sosnick, chief strategist at Interactive Brokers, noted that some investors are taking profits from tech stocks and rotating into high-growth sectors. “Given the heavy weighting of these tech giants in major indices, their volatility easily spills over to the broader market.”
Some market participants also express doubts about AI-concept stocks. OpenAI CEO Sam Altman remarked in a weekend interview that the AI sector is in a bubble.
Later this week, major retailers like Lowe’s, Walmart, and Target will release earnings en masse, offering investors further insight into the health of U.S. consumers.
“Consumers aren’t spending at full throttle and remain cautious,” said Peter Cardillo, chief market economist at Spartan Capital Securities. “They’re watching how tariffs might impact holiday spending in a few months.”
Stephen Schwartz, founding partner at Pioneer Financial, claimed: “The Jackson Hole speech is likely to be a market turning point. We believe Powell will send a strong signal that a rate cut is imminent at the September meeting.”
He added: “As 2025 moves into its second half, there’s still room for corporate valuations to expand. Investors will begin pricing in 2026 earnings, with lower rates and clearer tariff policies potentially driving profit improvements.”
Global Hotspots
U.S. Adds 407 Steel and Aluminum Derivatives to Tariff List at 50% Rate
On August 19 local time, the U.S. Commerce Department announced the addition of 407 product categories to its steel and aluminum tariff list, applying a 50% tariff. The department stated the expanded list covers a wide range, including wind turbine components, mobile cranes, railway vehicles, furniture, compressors, and pump equipment.
EU to Unveil New Russia Sanctions in September
On August 19 local time, the European Council held a video conference on the Ukraine issue following the Washington summit. EU High Representative for Foreign Affairs and Security Policy Josep Borrell said EU leaders are committed to achieving lasting peace to protect Ukraine and Europe’s vital security interests.
Borrell noted the EU will continue measures against Russia, with the next sanctions package expected in September, listed as a top agenda item for next week’s EU foreign and defense ministers’ meeting.
Trump Reveals Russia-Ukraine Leader Meeting Plans, Says ‘Roughly Arranged’
According to CNN, U.S. President Trump told Fox News on August 19 that he has “roughly arranged” a meeting between Russian President Vladimir Putin and Ukrainian President Volodymyr Zelensky. Trump shared further details, saying, “I’ve roughly set it up with Putin and Zelensky—you know, they’re the ones who need to decide, while we’re 7,000 miles away.”
Company News
U.S. Commerce Secretary Confirms
Seeking Stake in Intel via CHIPS Act Subsidies: On Tuesday local time, U.S. Commerce Secretary Howard Lutnick confirmed the federal government is negotiating with Intel to exchange CHIPS and Science Act subsidies for equity.
Lutnick said: “We should get shares for the capital we’re putting in. We’ll deliver the funds promised under the Biden administration, and in return, we’ll receive equity.” He emphasized that government ownership will not include voting rights or board seats.
Tech Giant Meta Reorganizes AI Team for Short- and Long-Term Goals
Meta Platforms is splitting its newly formed AI division into four independent teams and reallocating a large portion of its existing AI staff to maximize the impact of its multi-billion-dollar talent investments. An internal memo on Tuesday outlined the new structure to “accelerate” the company’s pursuit of so-called “superintelligence.”
The memo, issued by new Chief AI Officer Alexandr Wang (former Scale AI CEO), stated: “Superintelligence is coming, and to take it seriously, we must organize around the key areas needed to achieve it—research, products, and infrastructure.”
EV Demand Slows, Ford Seeks External Clients for Joint Battery Plant
Ford and South Korean battery giant SK On are seeking buyers for their new joint battery factory in Kentucky, USA, to address excess capacity, highlighting weakening U.S. EV demand. The plant officially opened Tuesday to support Ford’s EV business, initially supplying batteries for the F-150 Lightning plug-in pickup.
However, both have expanded their strategy to attract additional clients, including energy storage firms and EV makers. BlueOvalSK CEO Michael Adams said new customers might include energy storage companies and EV manufacturers. Reports earlier suggested Nissan was close to a battery deal, but no final agreement has been reached.
Altman: GPT-6 Will Bring ‘True Personalization’
OpenAI CEO Sam Altman revealed that GPT-6 is in development, with a release timeline shorter than the gap between GPT-4 and GPT-5. He said GPT-6 will not only answer queries but adapt to users, allowing people to create chatbots reflecting personal preferences.
Altman believes “memory” is key to true personalization in ChatGPT: “It needs to remember who you are—your preferences, habits, and quirks—and adjust accordingly. People want (AI to have) memory; they want products that understand them.”
Forex & Commodities
WTI September crude futures fell 1.69% to $62.35/barrel; Brent October crude futures dropped 1.22% to $65.79/barrel.
COMEX gold futures declined 0.56% to $3,359.1/oz; COMEX silver futures fell 1.81% to $37.34/oz.
At New York’s close, the U.S. Dollar Index rose 0.12% to 98.28, with most non-U.S. currencies weakening.
Key Events
UBS Predicts Record Global Gold Demand Since 2011
UBS forecasts global gold demand will hit a record high since 2011. It projects gold prices at $3,600/oz by March 2026 and $3,700/oz by June 2026 (previously $3,500/oz), with a September 2026 forecast of $3,700/oz.
Cryptocurrency
Major digital assets were lower on Tuesday.
Bitcoin shed 2.7% to $113,220, with 24-hour trading volume down 0.9% to $70.18 billion.
Ethereum (ETH-USD) fell 4.6% to $4,152.
XRP (XRP-USD) lost 5.4%, BNB (BNB-USD) declined 1.3%, and Solana (SOL-USD) fell 3%.
Dogecoin (DOGE-USD) shed 4.8%, while Cardano (ADA-USD) dipped 6.7%.
The total market value of the cryptocurrency industry declined 2.8% in the past 24 hours to $3.82 trillion, with trading volume down 2.8% to $186.99 billion.
Key Events
Fed Vice Chair for Supervision Central Bank’s View on AI and Crypto to Shift
Fed Governor Michelle Bowman stated that banks and regulators must embrace the benefits of new technologies like AI and crypto, or risk diminishing their economic role. “Change is coming,” Bowman said in prepared remarks for a Wyoming blockchain seminar.
She noted that ideally, regulators would allow new uses to be “widely adopted in ways that benefit the banking system.” “If we don’t take this approach, it could weaken the banking system’s connection to consumers, businesses, and the broader economy.”
Market Events and Most Anticipated Earnings Releases
