ADDX GO Market Morning Wrap - 27th Aug

Stock Market  

On Tuesday Eastern Time, the U.S. stock market maintained a steady trend, with the three major indices posting slight gains as Wall Street shifted its focus from Trump’s firing of Fed Governor Lisa Cook to Nvidia’s earnings report.  

 

 

(Minute chart of the three major indices, source: TradingView)  

 

At the close, the Dow Jones Industrial Average rose 0.30% to 45,418.07 points; the S&P 500 gained 0.41% to 6,465.94 points; and the Nasdaq Composite rose 0.44% to 21,544.27 points.  

 

Most large-cap tech stocks advanced, with Tesla and Nvidia up over 1%, and Apple, Netflix, Amazon, and Meta seeing modest gains; Google, Microsoft, and Intel posted slight declines. Eli Lilly rose nearly 6% after its oral GLP-1RA orforglipron succeeded in Phase 3 trials for obesity with type 2 diabetes.  

 

U.S. President Trump announced on Monday his intent to fire Cook, citing “deceptive and potentially criminal behavior” in her 2021 mortgage application. Cook responded that the president lacks the authority to dismiss Fed governors and vowed to continue her duties.  

 

Cook’s lawyer stated she will file a lawsuit, while both the Fed and Trump have pledged to abide by any court ruling.  

 

Adam Crisafulli, founder of Vital Knowledge, said, “In the short term, if Trump doesn’t attempt to fire Fed Chair Powell, the market may quickly digest the Cook incident, shifting focus back to Nvidia, PCE (Personal Consumption Expenditures), and employment data. However, the Fed’s independence is undoubtedly weakening, posing long-term negative implications.”  

 

Additionally, Trump stated on Monday his plan to impose “substantial” new tariffs and chip export restrictions on countries not abolishing digital taxes, adding pressure to market sentiment.  

 

Nevertheless, investor anticipation of Nvidia’s earnings report, due after Wednesday’s U.S. market close, provided some support to market sentiment. Ameriprise Chief Market Strategist Anthony Saglimbene expects Nvidia to “perform well.”  

 

Saglimbene noted, “The key is execution. How will Nvidia meet and execute against the relatively high market expectations? Will they provide guidance above expectations? These will shape the market’s reaction.”  

 

As an AI chip leader, Nvidia rose 1% on Tuesday, extending gains from the prior two trading days.  

Global Hotspots  

Fired by Trump, Fed Governor Cook to Sue  

 

On Tuesday local time (August 26), the lawyer for Fed Governor Lisa Cook announced she will sue to block her dismissal by U.S. President Trump.  

 

Washington attorney Abbe Lowell, representing Cook, stated, “President Trump has no authority to fire Fed Governor Lisa Cook. His attempt to dismiss her with a referral letter lacks factual or legal basis. We will file a lawsuit to challenge this illegal action.”  

 

Trump: U.S. ‘Exploited,’ Will No Longer Directly Fund Ukraine  

 

U.S. President Trump declared at a White House press conference on the 26th that the U.S. will change its Ukraine policy, ceasing direct financial aid. Ukraine must obtain weapons through European NATO partners.  

 

Trump emphasized that past U.S. commitments of $350 billion to Ukraine amounted to being “exploited.” The U.S. will now stop direct funding, with NATO handling Ukraine’s weapon needs, requiring full payment from NATO for U.S. arms deals.  

 

Lula: Brazil Not a Vassal, Will Use Multilateral Rules to Counter U.S. Tariffs  

 

On the 26th, Brazilian President Lula da Silva, at the 2025 second ministerial meeting, stressed the importance of sovereignty, negotiation, and multilateralism.  

 

Lula said Brazil is willing to negotiate on equal terms but rejects being treated as a subordinate. He called for necessary reforms to global multilateral institutions to resolve disputes within a rules-based framework.

 

Facing U.S. 50% tariffs on Brazilian goods, Brazil will rely on multilateral rules and negotiations to address disputes while seeking consensus without compromising principles.  

 

EU Reaffirms Right to Set Digital Rules, Rejects U.S. Criticism  

 

After U.S. President Trump threatened tariff retaliation over digital regulation measures, the EU stated on the 26th that it and its member states have sovereign rights to set economic activity rules domestically. EU Commission Chief Spokesperson Paula Pinho said at a press conference, “Regulating domestic economic activity is a sovereign right of the EU and its member states.”

 

This issue falls outside U.S.-EU trade agreement frameworks, “being entirely separate matters.”  

 

Venezuela Deploys Ships in Caribbean to Counter U.S. Military Moves  

 

On August 26 local time, reports indicate Venezuela has deployed ships in the Caribbean to combat drug trafficking.

 

Two informed sources revealed on the 25th that the U.S. has ordered additional naval deployment to the southern Caribbean to support President Trump’s crackdown on Latin American drug cartels, a move repeatedly condemned by Venezuela.  

Company News  

Apple Reportedly Discussed Acquiring Perplexity and Mistral  

 

Reports suggest Apple internally considered acquiring AI startups Perplexity and Mistral.  

 

Earlier media coverage indicated Apple is exploring using Google Gemini to support its updated Siri, and earlier this year, it held talks with Anthropic and OpenAI to assess Claude or ChatGPT for Siri enhancements.  

 

Rumors in July claimed Apple executives were discussing a potential Perplexity acquisition.  

 

CEO Tim Cook said last month the company is open to larger AI-related acquisitions to accelerate its product roadmap, a shift from its traditionally conservative merger strategy. However, Perplexity CEO Aravind Srinivas previously expressed reluctance to be acquired by tech giants like Meta or Google.  

 

Apple Fall Event Set for September 9, iPhone 17 and AI in Focus  

 

On Tuesday local time (August 26), Apple announced its annual fall event on September 9 at 10 AM PDT (1 AM Beijing time on the 10th) at its headquarters, themed “Awe dropping.”  

 

As per tradition, Apple is expected to unveil the iPhone 17 series.  

 

The event will also showcase Apple’s latest AI advancements, with markets watching how it competes in the AI race and integrates features into Siri and other services.  

 

Trump: Meta’s Louisiana Data Center Investment to Hit $50B  

 

U.S. President Trump said on Tuesday that Meta’s planned mega data center in rural Louisiana will cost $50 billion, expressing shock at the figure.  

 

“When they said a factory would cost $50 billion, I asked, ‘What kind of factory is this?’” Trump said, showing a chart he claimed was from Meta CEO Mark Zuckerberg comparing the data center’s size to Manhattan.  

 

“When you see this, you’ll understand why it costs $50 billion,” Trump added. Meta had previously disclosed an investment exceeding $10 billion.  

 

IBM and AMD to Collaborate on Next-Gen Computing Architecture  

 

Late Tuesday Beijing time, IBM and AMD announced a partnership to develop a next-generation computing architecture, combining IBM’s quantum computing and software with AMD’s supercomputing and AI accelerators.

 

IBM CEO Arvind Krishna said quantum computing will simulate the natural world and present information in new ways, with the collaboration exploring how IBM’s quantum systems and AMD’s advanced high-performance computing can create a powerful hybrid model to push beyond traditional computing limits.  

 

Eli Lilly’s Oral Weight-Loss Drug Orforglipron Meets Late-Stage Trial Goals  

 

On Tuesday local time, U.S. pharma giant Eli Lilly announced that its daily oral weight-loss drug met primary endpoints in a late-stage trial for obesity and type 2 diabetes patients, bringing it closer to global regulatory approval.

 

The news boosted Lilly’s stock by nearly 6% on Tuesday.  

Forex & Commodities  

WTI October crude futures fell 2.39% to $63.25 per barrel; Brent October crude futures dropped 2.3% to $67.22 per barrel.  

 

COMEX gold futures rose 0.65% to $3,439.6 per ounce; COMEX silver futures declined 0.1% to $38.665 per ounce.  

 

At New York’s close, the U.S. Dollar Index fell 0.20% to 98.24, with most non-U.S. currencies advancing.  

Key Events  

Brent Crude Futures: Seeking to Regain Bullish Momentum Post-Overbought  

 

Analysts’ latest views indicate Brent crude futures prices declined in the previous phase after reaching overbought levels, triggering negative signals as futures attempted to exit that state. Currently, Brent crude futures are trying to recover and rise again.

 

Under a short-term bullish correction trend, the positive pressure from trading above the EMA50 persists, alongside an encouraging double-bottom technical pattern influencing prices short-term.  

Cryptocurrency  

Major digital assets were higher Tuesday.  

 

Bitcoin edged up 0.3% to $111,146, with 24-hour trading volume down 4.1% to $78.64 billion.  

 

Ethereum (ETH-USD) rose 2.7% to $4,588.  

 

XRP (XRP-USD) gained 4.9%, BNB (BNB-USD) climbed 0.1%, and Solana (SOL-USD) rose 2.3%.

 

Dogecoin (DOGE-USD) added 1.9%, and Cardano (ADA-USD) rose 1.6%.  

 

The total market value of the cryptocurrency industry rose 0.8% in the past 24 hours to $3.86 trillion, with trading volume down 5.1% to $211.9 billion.  

Key Events  

Matrixport: Bitcoin ETF Sees Fifth Consecutive Month of Net Outflows, Seasonal Factors Limit Upside  

 

Matrixport’s daily analysis suggests Bitcoin ETFs may see a net outflow of about $1.2 billion this month, the second-highest on record after February’s $3.5 billion. Summer typically sees institutional funds exit, though Ethereum attracts inflows, while Bitcoin ETFs have recorded net outflows for five straight months.

 

Analysts note seasonal factors are short-term, but fund flows are equally significant. Despite macroeconomic and liquidity support for Bitcoin, market participants should remain cautious.