ADDX GO Market Morning Wrap - 28th Aug

Stock Market  

On Wednesday Eastern Time, the three major U.S. indices closed higher, with the S&P 500 hitting a new all-time closing high.  

 

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

 

At the close, the Dow Jones Industrial Average rose 0.32% to 45,565.23 points; the S&P 500 gained 0.24% to 6,481.40 points; and the Nasdaq Composite rose 0.21% to 21,590.14 points.  

 

Most large-cap tech stocks advanced, with Intel up over 2%, and Apple, Google, Microsoft, and Amazon seeing modest gains; Tesla, Netflix, and Meta experienced slight declines.  

 

Market attention focused on AI chipmaker Nvidia, which released earnings after the close, with Wall Street’s high expectations driving the S&P 500 to its 19th record closing high of the year.  

 

According to FactSet, Nvidia has beaten earnings expectations in 11 of the past 12 quarters, though its stock fell on four of those days following the release.  

 

“Today, the only thing that matters in the stock market is its earnings,” said Joseph Brusuelas, chief economist at RSM.  

 

Nvidia is seen as a bellwether for the broader market and a key indicator of AI development, with its earnings potentially influencing this year’s stock market rally.  

 

Per FactSet, Nvidia holds the largest weighting in the S&P 500 at about 8%, with its stock showing little change during the day, closing down 0.09%.  

 

Nvidia reported strong Q2 results after hours, including a $60 billion stock buyback plan, but its stock dropped over 5% in after-hours trading due to slightly below-expected revenue from its key data center segment. As of press time, the after-hours decline narrowed to under 3%.  

 

 

The earnings showed Nvidia’s Q2 revenue and profit exceeded expectations, with a solid Q3 guidance. However, the critical data center segment’s revenue was slightly below forecasts.

 

 

Including this latest report, Nvidia has beaten earnings expectations in 12 of the past 13 quarters, though its stock fell after five of those releases.  

Global Hotspots  

Trump Considers Limiting Foreign Students’ U.S. Stay to Four Years  

 

U.S. President Trump proposed limiting foreign students’ time in the U.S. to four years.  

 

Russia Imposes New Temporary Ban on Gasoline Exports  

 

On August 27 local time, the Russian government announced a new temporary ban on gasoline exports. Effective from September 1 to September 30, the ban applies to all exporters, including petroleum product producers and non-producers.

 

Starting October 1, restrictions on gasoline producers will be lifted. The Russian Federal Government’s official social media stated this decision aims to stabilize the domestic fuel market. A previous export ban was set by the government in February 2025, effective from March 1 to August 31 (inclusive). This restriction also applies to supplies from direct petroleum product producers.  

 

Russia Lowers 2025 Growth Forecast, High Interest Rates Suppress Credit Demand  

 

On Wednesday local time, during a cabinet meeting chaired by President Putin, Russian Finance Minister Siluanov stated that high interest rates to curb inflation have suppressed credit demand, lowering the 2025 growth forecast from 2.5% to 1.5%.

 

Despite Western sanctions since the 2022 Russia-Ukraine conflict, Russia’s “war economy” achieved strong growth of 4.1% in 2023 and 4.3% in 2024, outperforming G7 nations. However, economic growth has noticeably slowed this year.  

 

Mexico Suspends Parcel Delivery Services to the U.S.  

 

On August 27 local time, Mexico’s Foreign Ministry and Correos de México jointly announced the immediate suspension of all postal and parcel delivery services to the U.S.  

 

The suspension stems from the U.S. ending tax exemptions for imports valued at $800 or less starting August 29, requiring all small parcels to pay applicable duties. This measure will remain in place until “new operational procedures are clarified.”  

 

Mexico’s Foreign Ministry is engaging with U.S. authorities and the Universal Postal Union to establish a structured resumption plan, ensuring certainty for users and avoiding delivery delays. Beyond Mexico, 25 countries, including Germany, Australia, Canada, Japan, and New Zealand, have also suspended mail services to the U.S. due to impending tax policies.  

 

U.S. Approves Over $100 Million Sale of Sidewinder Missiles to NATO  

 

The U.S. Department of Defense announced that the State Department has approved the sale of AIM-9X Sidewinder missiles and related equipment to the NATO Support and Procurement Agency, valued at approximately $103.9 million.  

 

Europe’s Largest Ammunition Production Base Opens in Germany  

 

On August 27, Germany’s largest defense contractor, Rheinmetall, held a commissioning ceremony for its new ammunition factory in Unterlüß, Lower Saxony. German Vice Chancellor and Finance Minister Christian Lindner, Defense Minister Boris Pistorius, and NATO Secretary General Mark Rutte attended.  

 

Rheinmetall revealed the factory will produce 25,000 155mm artillery shells this year, increasing to 140,000 next year. From 2027, annual production is expected to reach 350,000, making it Europe’s largest ammunition production base.  

Company News  

Nvidia Q2 Data Center Revenue Misses Expectations, Stock Drops Over 5% After Hours

 

After Wednesday’s close Eastern Time, Nvidia released its latest earnings, with revenue and profit exceeding market expectations. However, due to two consecutive quarters of slightly below-expected revenue from its critical data center segment, its stock fell over 5% in after-hours trading.  

 

The report showed Nvidia’s Q2 FY2026 (ended July 2025) revenue at $46.74 billion, up 56% year-over-year, beating the expected $46.06 billion; net income was $26.42 billion, up 59%, with earnings per share at $1.05, surpassing the expected $1.01.  

 

Nvidia forecasts Q3 revenue at $54 billion, slightly above Wall Street consensus, excluding H20 sales.  

 

The data center segment’s Q2 revenue grew 56% to $41.1 billion but fell short of the expected $41.34 billion.  

 

CrowdStrike Q2 Revenue $1.17 Billion, Beats Expectations  

 

CrowdStrike reported Q2 revenue of $1.17 billion, exceeding the analyst estimate of $1.15 billion. It forecasts full-year revenue at $4.75-4.81 billion (previously $4.74-4.81 billion) and Q3 revenue at $1.21-1.22 billion, below the $1.23 billion analyst expectation.  

 

Snowflake Expects Q3 Product Revenue of Approximately $1.13 Billion  

 

Snowflake anticipates Q3 product revenue of about $1.13 billion, topping the $1.12 billion analyst estimate, with an adjusted operating margin of 9%.  

 

GlobalFoundries: CHIPS Act Subsidy Progress Good, No Equity Stake Required  

 

On Wednesday local time (August 27), U.S. chipmaker GlobalFoundries stated it is making good progress on CHIPS Act subsidies, with no equity stake involved in the framework.  

 

CFO John Hollister said at the Deutsche Bank Technology Conference that the company receives government funding based on milestone achievements under the CHIPS Act.  

 

Intel Targets Lockheed Martin After U.S. Stake, Government May Invest in Defense Firms  

 

After announcing a stake in U.S. chipmaker Intel, the federal government is now eyeing American defense giant Lockheed Martin.

 

U.S. media reported on August 26 that Commerce Secretary Lutnick revealed the Trump administration is considering equity stakes in top defense contractors.  

 

Apple Partners with TuneIn to Expand Radio Platform  

 

Reports indicate that digital radio platform TuneIn has partnered with Apple to open Apple Radio services on its global device network, covering smart speakers, headphones, and in-car systems.  

Forex & Commodities  

WTI October crude futures rose 1.42% to $64.15 per barrel; Brent October crude futures gained 1.23% to $68.05 per barrel.  

 

COMEX gold futures rose 0.51% to $3,450.6 per ounce; COMEX silver futures gained 0.17% to $38.67 per ounce.  

 

At New York’s close, the U.S. Dollar Index fell 0.04% to 98.19, with non-U.S. currencies showing mixed results.  

Key Events  

Record Gold Prices Fail to Save Major Miner, World’s Largest Plans Mass Layoffs to Cut Costs  

 

The world’s largest gold miner, Newmont Corporation, is studying a comprehensive cost-reduction plan that may lead to mass layoffs. In 2023, Newmont acquired Newcrest Mining Limited for $15 billion, expanding its mine portfolio to about 20 and entering the copper business, driving up overall costs.  

Cryptocurrency  

Bitcoin edged down 0.26% to $111,462.  

 

Ethereum (ETH-USD) fell 1.58% to $4,571.  

 

XRP (XRP-USD) dropped 0.92%, BNB (BNB-USD) declined 0.61%, and Solana (SOL-USD) rose 4.62%.  

 

Dogecoin (DOGE-USD) gained 0.96%, and Cardano (ADA-USD) fell 1.16%.  

Key Events  

Bitcoin Asia 2025 Conference Opens, Eric Trump and Changpeng Zhao to Attend  

 

Bitcoin Asia 2025 will be held on August 28-29 at the convention center. U.S. President Trump’s son and Trump Organization Executive Vice President Eric Trump will attend and participate in two speeches or discussions, with Binance founder Changpeng Zhao also on the speaker list.

 

According to the event details, Eric Trump will join two discussions on Friday afternoon, including an exclusive VIP session titled “ALL IN ON BITCOIN.” He will be interviewed by Kraken’s Strategic Director Tracy Hoyo-Lopez, with access limited to Whale Pass holders at $3,499.