ADDX GO Market Morning Wrap - 23rd Aug
Stock Market
On Friday Eastern Time, all three major U.S. stock indexes closed higher, with the Dow hitting a record high. Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium hinted at a rate cut in September, prompting investors to pile in and driving a broad rally in U.S. stocks.
Large-cap tech stocks rose across the board: Tesla surged over 6%, marking its largest single-day gain in two months; Intel jumped more than 5% (after the White House announced a 10% stake acquisition on Friday); Google and Amazon gained over 3% (with Apple reportedly exploring the Gemini model to upgrade Siri, pushing Google to a new high); AMD and Meta rose over 2%; Apple and Nvidia gained more than 1%; Microsoft saw a modest increase; and Netflix dipped slightly. Opendoor soared over 39%, reaching a new high since August 2023.
Powell noted that the U.S. labor market might experience a more significant slowdown, while cost pressures from tariffs on inflation could ease, opening the door for the Fed to consider a rate cut at next month’s meeting.
Following his remarks, market bets on a September rate cut heated up significantly. Traders now see a nearly 90% probability, up from about 75% before the speech.
Nick Timiraos, dubbed the “Fed Whisperer,” commented that Powell shifted gears again at Jackson Hole but was noticeably more cautious than last year, as inflation is gradually drifting from the Fed’s target and policy is less restrictive than a year ago.
Nigel Green, CEO of deVere Group, remarked: “Powell showcased the typical central banker’s playbook at Jackson Hole—keeping policy space open. A September rate cut would reassure households and businesses that the Fed isn’t standing idly by. Delaying further could heighten the risk of a hard economic landing.”
Zak Stambor, senior analyst at Emarketer, said: “Investors treated Powell’s speech as a trumpet call for a rate-cut party, but a single cut offers limited consumer stimulus. The bigger question is whether this signals a true Fed policy pivot—or if escalating tariffs force the central bank to hit the brakes before turning.”
Earlier in the day, UBS Global Wealth Management raised its year-end S&P 500 target for the second time in two months, citing robust corporate earnings, easing trade tensions, and rate-cut expectations.
Global Hotspots
Late Surge! Fed Drops Major News
On August 22 local time, Fed Chair Powell stated at the Jackson Hole global central bank symposium that current conditions suggest downside risks to employment growth, and shifts in the risk balance might necessitate policy adjustments. Powell expressed openness to rate cuts, hinting they could occur in the coming months.
Trump Issues Firing Warning; Fed Governor Vows to Stay
On August 22 local time, a CCTV reporter learned that U.S. President Trump, while visiting a White House-themed museum in Washington, said he would fire Fed Governor Lisa Cook if she doesn’t resign voluntarily. “If she doesn’t step down, I’ll fire her,” he stated. Cook responded, emphasizing she has “no intention of resigning due to threats” and will not yield to external pressure.
Canada Drops Retaliatory Tariffs on U.S. Goods
On August 22 local time, Canadian Prime Minister Carney announced at a press conference in Ottawa that Canada will lift several retaliatory tariffs on U.S. goods, though tariffs on U.S. autos, steel, and aluminum will remain temporarily. He stressed these measures align with U.S. reductions on Canadian goods.
Trump: Furniture Imports to Face Tariffs
U.S. President Trump posted that he’s pleased to announce a major tariff investigation on furniture entering the U.S. To be completed in 50 days, imported furniture will face an as-yet-undetermined tariff rate, aiming to bring furniture businesses back to North Carolina, South Carolina, Michigan, and other states.
Putin: Russia-U.S. Relations Show Glimmer of Hope
According to News, on August 22 local time, Russian President Putin met nuclear physicists and industry experts in Sarov.
He said Russia will continue nuclear cooperation with Western nations at “nearly the same scale as before the special military operation,” supplying fuel and services. On Russia-U.S. ties, Putin noted a “light at the end of the tunnel” since Trump’s presidency, calling their Alaska meeting candid and “just the start of full relationship restoration.”
Fitch Affirms U.S. Rating at “AA+” with Stable Outlook
Fitch confirmed the U.S. rating at “AA+” with a stable outlook. It forecasts the U.S. government deficit to narrow to 6.9% of GDP in 2025, rise to 7.8% in 2026, and 7.9% in 2027. It expects accelerated rate cuts in 2026 to boost early second-half demand, lifting 2027 growth to 2.1%, though 2026 economic activity will remain sluggish at 1.5% due to policy uncertainty and high inflation impacting consumer spending.
U.S. Tariff Policy Prompts European Postal Firms to Halt U.S. Shipments
After Trump announced on July 30 that tax exemptions for imports valued at $800 or less would end on August 29, Reuters reported on August 20 that postal firms in Sweden, Norway, and other countries have suspended shipments to the U.S.
South Korea Integrates AI into Five-Year Economic Strategy
On August 22, the South Korean government released its “New Government Growth Strategy” as a five-year economic blueprint, aiming to boost AI and super-innovation industries with corporate leadership and government support to achieve a 3% potential growth rate.
Deputy Prime Minister and Finance Minister Choo Kyung-ho announced the plan at a joint press conference, with a “National Growth Fund” of over 1 trillion KRW (about 51.9 billion RMB) planned to invest in AI, energy infrastructure, and related tech and firms.
Company News
Apple Explores Google Gemini for New Siri
Apple is in early talks to use Google’s Gemini to power its new Siri voice assistant, a potential key step toward outsourcing more AI tech. Insiders say the iPhone maker recently engaged Alphabet’s Google to develop a customized AI model for next year’s Siri upgrade, with Google training a model to run on Apple servers.
Apple aims to catch up in generative AI, where it lags and struggles to break through. Earlier this year, it also explored partnerships with Anthropic PBC and OpenAI to assess Claude or ChatGPT for Siri. A final decision is weeks away, with Apple weighing internal models versus external partners, though candidates remain undecided. Both Apple and Google declined to comment.
Novo Nordisk Cuts Bonuses for Thousands Amid Profit Drop
According to Friday’s news, after slashing its full-year guidance, Novo Nordisk sent an internal memo to management staff at its Danish headquarters, announcing zero performance bonuses for the first half due to underperforming sales and profits.
Thousands of Danish employees are affected, as their contracts tie bonuses to financial results. A spokesperson confirmed Friday that 2025 bonuses will be reduced due to the lowered outlook, affecting eligible Danish staff on short-term incentives.
Lutnick Confirms U.S. Holds 10% Intel Stake
U.S. Commerce Secretary Lutnick stated that the U.S. now holds a 10% stake in Intel, thanking its CEO. This historic deal strengthens America’s semiconductor leadership, boosting economic growth and ensuring tech dominance. Intel remains one of America’s greatest tech firms.
Waymo Gets Permit to Test Self-Driving Cars in NYC
Alphabet’s Waymo has received approval to deploy a limited number of self-driving cars in designated NYC areas, requiring trained “safety operators” to take over if needed. Mayor Eric Adams and Transportation Commissioner Ydanis Rodriguez announced the move Friday. With a fleet of about 1,500 vehicles, Waymo has completed over 10 million rides in San Francisco, Phoenix, Austin, and other cities.
Forex & Commodities
WTI October crude futures rose 0.22% to $63.66 per barrel, up 1.37% for the week; Brent October crude futures gained 0.09% to $67.73 per barrel, up 2.88% for the week.
COMEX gold futures rose 1.05% to $3,417 per ounce, up 1.02% for the week; COMEX silver futures climbed 2.12% to $38.885 per ounce, up 2.38% for the week.
At New York’s close, the dollar index fell 0.94% to 97.72, with most non-U.S. currencies gaining.
Key Events
EU Imposes Tariffs on Russian Fertilizers, Raising Costs for European Farmers
The EU has imposed tariffs on Russian fertilizer imports to cut Russia’s revenue, but this has hit European farmers, raising production costs and potentially consumer prices. Meanwhile, Russian fertilizer firms say they can redirect exports elsewhere.
Cedric Benoist, deputy secretary of the French Wheat Farmers Union AGPB and head of the Copa-Cogeca Grain Committee, bluntly said: “We’re shooting ourselves in the foot.” He noted European farmers now face higher fertilizer prices.
Cryptocurrency
Major digital assets rose on Friday.
Bitcoin gained 4.1% to $116,633, with 24-hour trading volume surging 36.3% to $79.49 billion.
Ethereum (ETH-USD) climbed 14.7% to $4,840.
XRP (XRP-USD) rose 7.8%, BNB (BNB-USD) gained 7.2%, and Solana (SOL-USD) jumped 10.4%.
Dogecoin (DOGE-USD) rose 11.2%, and Cardano (ADA-USD) added 9.5%.
The total market cap of the crypto industry rose 6% in the past 24 hours to $4.03 trillion, with trading volume up 50.4% to $229.63 billion.
Key Events
Bitcoin Volatility Eases, Shows ‘Blue-Chip’ Traits as Speculative Funds Shift to Ethereum
Bitcoin assets are increasingly showing maturity, with volatility easing, pushing speculative traders to seek new opportunities. As the world’s largest cryptocurrency, Bitcoin’s performance increasingly resembles a blue-chip stock, attracting long-term Wall Street investors.
Its annualized volatility has dropped from over 200% a decade ago to a near-unimaginable 38%, per Bytetree Asset Management, now comparable to companies like Starbucks (SBUX.US) or Goldman Sachs (GS.US).