ADDX GO Market Morning Wrap - 2nd Sep
Stock Market
U.S. stocks closed overnight, September is historically the worst month of the year for stocks.
The arrival of autumn has historically been an underwhelming time for stock returns.
The back-to-school season isn’t the only source of stress in September.
For Wall Street, it has long carried a reputation as the most challenging month of the year for U.S. stocks—marked by seasonal weakness and a higher likelihood of volatility after the quiet summer months.
History shows that the Dow Jones Industrial Average (DJIA) has generated an average monthly decline of 1.1% in September and finished higher only 42.2% of the time dating back to 1897, according to Dow Jones Market Data.
However, some analysts noted that while September’s seasonal weakness may be “an ancillary factor” weighing on the stock market’s performance, other “more powerful macroeconomic forces,” such as the health of the U.S. economy and corporate America, could ultimately drive future stock performance.
European stocks ended the day with collective gains: the STOXX 50 index rose 0.30%, the UK FTSE 100 index gained 0.1%, the French CAC 40 index increased by 0.05%, the German DAX 30 index rose 0.57%, and the Italian FTSE MIB index climbed 0.51%.
Global Hotspots
EU Responds to U.S. Pressure, Vows to Continue Digital Legislation
Margrethe Vestager, Executive Vice-President of the European Commission for Technology Sovereignty, stated on social media on September 1 that the Digital Services Act (DSA) and Digital Markets Act (DMA) are “sovereign legislation” for the EU, and the bloc will continue to enforce these digital laws.
Vestager emphasized that these laws are non-discriminatory and apply to all online platforms operating in the EU. She also sent a letter to Jim Jordan, Chairman of the U.S. House Judiciary Committee, reiterating that EU digital legislation has no extraterritorial effect but will regulate services provided within the EU, regardless of where a company’s headquarters are located.
Besant Suggests Trump May Declare U.S. Housing Emergency This Fall
Besant indicated that the Trump administration might declare a national housing emergency this fall.
He hinted that authorities are exploring ways to regulate local building and zoning codes while reducing transaction completion costs, and Trump may consider tariff exemptions on specific building materials. Besant said, “We’re working to figure out what we can do; we don’t want to interfere with state, county, or municipal affairs.”
Brazilian Coffee Exports to U.S. Plummet 55% in August Due to Tariffs
The Brazilian Coffee Exporters Association reported that due to the U.S. government’s 50% tariff on Brazilian products, coffee exports to the U.S. in August dropped 55.24% year-on-year. Data shows that Brazil exported 450,000 bags to the U.S. in July, but this fell to around 250,000 bags after the U.S. tariff policy took effect in early August.
The association noted that U.S. coffee consumption demand remains strong, but the “tariff shock” will ultimately harm American consumers through inflationary effects.
Maduro: Venezuela Faces Greatest Threat in South America in a Century
Venezuelan President Nicolás Maduro held a press conference, stating that Venezuela is facing the greatest threat to the South American continent in a century. Maduro affirmed Venezuela’s love for peace but vowed not to yield to any threats. Recent large-scale U.S. naval deployments in the southern Caribbean and nearby waters have escalated tensions between the two nations.
According to U.S. media reports on August 20, President Trump decided to deploy an amphibious fleet near Venezuela to “combat Latin American drug cartels,” including three amphibious assault ships and dock landing ships carrying approximately 2,200 Marines. Maduro condemned the U.S. on August 22, accusing it of attempting to overthrow Venezuela’s regime through terrorism and military means.
H5N1 Bird Flu Outbreak in Southwest England
The UK Department for Environment, Food and Rural Affairs (Defra) and the Animal and Plant Health Agency (APHA) issued a joint statement on August 31, reporting an H5N1 highly pathogenic avian influenza outbreak in southwest England. The statement confirmed that a farm near Devon in southwest England experienced an H5N1 outbreak.
A 3-kilometer protection zone and a 10-kilometer surveillance zone have been established around the farm, with all poultry on-site to be culled. The statement noted that since the highly pathogenic avian influenza outbreak began in England last November, 80 cases have been reported across the UK.
UAE’s G42 Seeks to Diversify Chip Supply, Reduce Nvidia Dependence
According to insiders, UAE AI company G42 is negotiating with major tech giants to attract them to its planned AI park. Additionally, G42 aims to diversify its chip supply rather than relying solely on Nvidia.
Sources reveal that current talks involve Amazon AWS, Google, Meta, Microsoft, and Elon Musk’s xAI, with Google’s negotiations reportedly the most advanced, potentially leading to a computing power procurement deal.
Japan and South Korea Experience Record-Breaking ‘Hottest Summer’
Japan and South Korea’s meteorological agencies reported on September 1 that the past three months marked the hottest summer on record for both nations. Japan’s Meteorological Agency stated that the average temperature from June to August was 2.36°C above the historical norm, the highest since records began in 1898, with summer temperatures breaking records for the third consecutive year.
South Korea’s Meteorological Administration reported a national average temperature of 25.7°C from June to August, the highest since data collection started in 1973, surpassing last summer’s record of 25.6°C.
89.6% Probability of Fed Rate Cut in September
According to CME’s “FedWatch”: The probability of the Federal Reserve maintaining rates in September is 10.4%, with an 89.6% chance of a 25-basis-point cut. The probability of no change in October is 4.9%, with a 47.3% chance of a cumulative 25-basis-point cut and a 47.9% chance of a cumulative 50-basis-point cut.
Forex & Commodities
International oil prices rose, with Brent crude futures for November gaining $0.67, or 0.99%, to close at $68.15 per barrel.
Spot silver rose 2.51% to $40.71 per ounce, the last time it broke the $40 threshold being in 2011.
The U.S. Dollar Index, measuring the dollar against six major currencies, fell 0.07% to close at 97.707 in late trading.
Key Events
Crude futures climbed within a recent narrow trading range as traders’ attention turned to geopolitical risks.
Brent oil prices hovered near $68 per barrel, remaining within the $65–$70 range of the past month. Monday’s trading was light due to North American public holidays.
India rebuffed ongoing U.S. pressure to stop importing Russian oil, with its oil minister arguing that purchases help shield the global economy from soaring oil prices. Ukraine escalated attacks on Russian refineries over the weekend, intensifying pressure on the country’s infrastructure.
Cryptocurrency
Bitcoin rose 0.99% to $109,139.
Ethereum (ETH-USD) fell 1.73% to $4,309.
XRP (XRP-USD) dropped 0.21%, BNB (BNB-USD) gained 1.30%, and Solana (SOL-USD) declined 1.41%.
Dogecoin (DOGE-USD) fell 1.27%, and Cardano (ADA-USD) dropped 0.99%.
Key Events
Today! Crypto Milestone: Trump Family’s ‘Core Token’ Begins Trading
A crypto project deeply tied to the Trump family is launching its token on the open market, marking a major event in the crypto world and a ultimate test of Trump’s influence in fintech.
Today (September 1), the World Liberty Financial project, publicly supported by the Trump family, will see its governance token WLFI begin trading. At 12:00 PM UTC, the Token Generation Event (TGE) will launch, allowing early investors to unlock and sell 20% of their holdings, representing about 5% of the total supply.
This debut will occur on major exchanges like Binance and Coinbase, drawing significant market attention. Based on current futures prices of $0.20 to $0.30, WLFI’s fully diluted valuation exceeds $40 billion, placing it among the top 45 cryptocurrencies by market cap.
