ADDX GO Market Morning Wrap - 26th Aug

Stock Market

On Monday Eastern Time, the three major U.S. indices closed lower, dampening the market’s upward momentum from Federal Reserve Chair Jerome Powell’s speech last Friday.  

 

As of the close, the Dow Jones Industrial Average fell 0.77% to 45,282.47 points; the S&P 500 dropped 0.43% to 6,439.32 points; and the Nasdaq Composite declined 0.22% to 21,449.29 points.  

 

Large-cap tech stocks were mixed, with Nvidia, Netflix, Google, and Tesla rising over 1%; Intel fell more than 1%, while Amazon, Meta, Apple, and Microsoft saw slight declines.  

 

Last Friday, Powell, speaking at the Jackson Hole symposium, said, “The balance of risks seems to be shifting,” hinting at a possible monetary policy easing as early as next month. This statement drove a significant rally in U.S. stocks that day, with the Dow hitting a record high.  

 

According to the CME FedWatch Tool, the market currently estimates an 84% probability of a 25-basis-point rate cut in September.  

 

However, if economic data fails to align, rate cut expectations could falter. The July Personal Consumption Expenditures (PCE) data, a key inflation gauge for the Fed, will be released this Friday.  

 

The week’s highlight is Nvidia’s earnings report, due after the market close on Wednesday. This $4.4 trillion chip giant, seen as an AI bellwether, has investors concerned that the AI spending boom may be cooling.

 

Sam Stovall, chief investment strategist at CFRA Research, said the current market adjustment was not surprising.  

 

Stovall noted: “Much of last Friday’s gains came from short covering, as investors were worried the Fed might say ‘no more cuts this year.’ Between now and September 17 (the Fed’s next rate meeting), there’s too much uncertainty. While we benefited from Friday’s optimism, until we’re certain the Fed will cut rates, the market is likely to see only ‘limited upside.’”  

Global Hotspots  

Trump Open to Renegotiating U.S.-Korea Trade Deal  

 

On August 25 local time, U.S. President Donald Trump met with South Korean President Lee Jae-myung at the White House. Trump expressed openness to renegotiating the U.S.-Korea trade agreement, considering orders for ships from South Korea.

 

Under the existing agreement, South Korea is to provide $350 billion for U.S.-controlled investment projects. On July 31, Lee stated that the $350 billion investment fund, part of the U.S.-Korea deal, would support Korean firms in shipbuilding, semiconductors, batteries, biotech, and energy sectors to expand into the U.S. market, with $150 billion earmarked as a dedicated U.S.-Korea shipbuilding cooperation fund.  

 

U.S. to Tax Small Packages Starting Friday! Multiple Countries Suspend Shipping to U.S.  

 

The U.S. small package duty-free policy faces a major shift. President Trump recently signed an order abolishing the duty-free threshold for imports valued at $800 or less. This measure takes effect on August 29.

 

Malaysia Launches First AI Chip, Enters Global Cutting-Edge Tech Race  

 

On Monday local time, Malaysia unveiled its first domestically developed AI processor, joining the global race for core electronic component innovation. Local chip design firm SkyeChip launched the MARS1000 at an event hosted by an industry association, attended by government officials.

 

The Malaysia Semiconductor Industry Association (MSIA) stated this is the country’s first edge AI processor, embeddable in cars and robots for local computation without cloud reliance.

 

Saudi Humain Data Centers to Operate Next Year, Launches First Conversational AI App  

 

Saudi Arabia’s new AI firm Humain has begun constructing its first data centers domestically, slated for operation by early 2026, using imported U.S. semiconductors. On Monday, CEO Tareq Amin revealed that the Riyadh and Dammam campuses are expected to launch in Q2 2026, each with an initial capacity of 100 megawatts.  

 

Trump Admin Hints at 50% Tariff on India

 

A draft notice released by the Trump administration on Monday outlined plans to impose a 50% tariff on Indian products, the latest signal of White House intentions to raise tariffs. The U.S. Department of Homeland Security stated the increased tariffs will apply to Indian goods entering the consumer market or withdrawn from warehouses after 12:01 AM EDT on August 27, 2025.

 

Earlier this month, Trump announced plans to double tariffs on Indian purchases of Russian oil from 25% to 50%. The Indian government has condemned the so-called secondary tariffs as unfair, hoping peace talks will eliminate the need for such measures.  

Company News  

Intel Just the Start! Trump: Will Hold More Company Stakes  

 

On Monday local time, U.S. President Trump boasted on Truth Social about the government’s stake in Intel, vowing to pursue more similar deals by holding shares in private companies. Trump wrote: “I didn’t spend a dime on the Intel stake deal, valued at $11 billion, with all profits going to the U.S.”  

 

Musk Sparks New Dispute: Companies Sue Apple and OpenAI for Anticompetitive Behavior  

 

On Monday local time (August 25), two companies under tech mogul Elon Musk—xAI and social media platform X—filed a lawsuit against Apple and OpenAI, alleging “anticompetitive behavior” to suppress AI rivals. The case was filed in the U.S. District Court for the Northern District of Texas, claiming Apple and OpenAI colluded to maintain monopolies in smartphones and generative AI markets.  

 

Intel Warns: U.S. Government Stake Poses Risks, Could Rise to 15%  

 

On Monday local time (August 25), Intel warned that the Trump administration’s 10% stake in the company could pose business risks, potentially rising to 15% if chip manufacturing fails to meet certain thresholds.

 

In a filing with the U.S. Securities and Exchange Commission (SEC), Intel noted that the agreement, announced by President Trump on Friday, makes the federal government its largest shareholder, potentially impacting its 76% international sales revenue. The deal may also trigger lawsuits and opposition from foreign governments, business partners, or even employees.  

 

Nvidia’s Jetson AGX Thor Compute Platform for Robotics Goes into Mass Production  

 

Nvidia has officially launched its Jetson AGX Thor developer kit and mass-production module, designed for robotic applications, now fully available. The new Jetson AGX Thor developer kit starts at $3,499 and is open for global sales, including China, effective immediately.  

 

Nvidia Unveils Drive AGX Thor Dev Kit for Global Auto Developers  

 

Nvidia has introduced the Drive AGX Thor development kit for autonomous vehicles and smart traffic solutions, available for pre-order now with shipping starting in September.  

 

Home Depot Extends Offer to Acquire GMS Until September 3  

 

Home Depot announced on August 25 that its wholly-owned subsidiary, Gold Acquisition Sub, has extended the deadline for its acquisition offer of GMS. Originally set to expire on August 22, 2025, the offer to buy all GMS common stock at $110 per share in cash has been extended to September 3, 2025.  

Forex & Commodities  

WTI October crude futures rose 1.79% to $64.80 per barrel; Brent October crude futures gained 1.58% to $68.80 per barrel.  

 

COMEX gold futures fell 0.25% to $3,409.9 per ounce; COMEX silver futures dropped 1.34% to $38.53 per ounce.  

 

At New York’s close, the U.S. Dollar Index rose 0.8% to 98.427, marking its largest gain since July 30, with most non-U.S. currencies advancing.  

Key Events  

Global Oversupply Expectations Heat Up, Brent Futures Fall Below Dubai Crude  

 

Due to President Trump’s crackdown on Russian oil supplies and market expectations of an oversupply later this year, global benchmark Brent crude is trading unusually below Middle Eastern crude prices. Data shows Brent crude futures are 3 cents per barrel below Dubai crude, the first such occurrence since April.

 

Traders anticipate a flood of crude in coming months, with OPEC+ and non-OPEC countries increasing production, pressuring Brent futures and weakening the time spread—a health indicator for the market. Meanwhile, demand for Middle Eastern crude has seen a temporary boost from a buying spree by Indian refiners, linked to Trump’s pressure on India for purchasing Russian oil.  

Cryptocurrency  

Major digital assets fell on Monday, with Bitcoin (BTC-USD) hovering just above $111,000.  

 

Bitcoin dropped 1.2% to $111,209, with 24-hour trading volume surging 32.6% to $81.56 billion.

 

Ethereum (ETH-USD) declined 6.7% to $4,466.  

 

XRP (XRP-USD) lost 4.2%, BNB (BNB-USD) fell 1.1%, and Solana (SOL-USD) dropped 6.1%. Dogecoin (DOGE-USD) shed 8.1%, while Cardano (ADA-USD) lost 7%.  

 

The total market value of the cryptocurrency industry fell 3.3% in the past 24 hours to $3.83 trillion, with trading volume up 37.8% to $225.69 billion.  

Key Events  

Analysts: Bitcoin’s Near-Term Outlook May Hinge on U.S. Economic Data  

 

Blackburn Market analyst Lyn Tran wrote in a commentary that Bitcoin’s near-term outlook will largely depend on upcoming U.S. economic data, including preliminary GDP and core PCE inflation figures. If these data continue to show a slowing U.S. economy and easing inflation, the Fed will have stronger justification to begin a rate-cut cycle.