ADDX GO Market Morning Wrap - 6th Sep
Stock Market
On Friday, US stocks opened higher but closed lower, with all three major indices declining.
At the close, the Dow Jones Industrial Average fell 0.48% to 45,400.86 points; the S&P 500 dropped 0.32% to 6,481.50 points; and the Nasdaq Composite edged down 0.03% to 21,700.39 points.
During the early session, all three indices hit intraday record highs, bolstered by pre-market nonfarm data that reinforced expectations of a Federal Reserve rate cut. However, the subsequent decline was triggered by economic concerns stemming from the report.
Large-cap tech stocks showed mixed performance: Google rose over 1%, hitting a new all-time high; Meta saw slight gains; Microsoft fell more than 2%; Amazon and Netflix dropped over 1%; and Apple dipped slightly.
Tesla surged over 3%, with media reports indicating Tesla offered Musk a $1 trillion compensation package contingent on boosting the company’s market cap to $8.5 trillion.
Chip stocks mostly rose, with Broadcom up over 9% to a new high—its Q3 earnings beat expectations, and OpenAI will begin mass-producing in-house AI chips with the company, prompting multiple firms to raise target prices; Micron Technology gained over 5%; ASML and TSMC rose more than 3%; Nvidia closed down nearly 3%; and AMD fell over 6%.
Data from the US Bureau of Labor Statistics showed that nonfarm employment in August added only 22,000 jobs, far below the market’s expected 75,000. White House economic advisor Hassett acknowledged the employment data was “somewhat disappointing.”
eToro analyst Bret Kenwell argued there’s a clear distinction between a temporary cooling of the labor market and a deep recession, stating, “Expecting the former to justify rate cuts while ignoring the latter’s risks is a ‘slippery slope fallacy.’”
Kenwell added, “In a context of high interest rates and economic resilience, stocks can perform well, but if the labor market shows real cracks, that resilience could quickly fade.”
Due to potential economic slowdown impacting loan growth, combined with Fed rate cuts affecting banks’ net interest income (NII), JPMorgan’s stock fell 3.11%, making it the worst performer among Dow components.
JPMorgan’s Chief US Economist Michael Feroli said, “Today’s news may raise more questions about growth prospects than Fed outlook; this data should remove the ‘last major hurdle’ for a 25 basis point cut this month.”
Feroli also noted, “We believe today’s data supports consecutive rate cuts after September rather than phased cuts.”
On a weekly basis, the Dow fell 0.32%, the S&P gained 0.33%, and the Nasdaq Composite rose 1.14%. The Nasdaq’s strength was driven by strong performances from non-Dow components like Google and Broadcom.
Global Hotspots
Far Below Expectations! US August Nonfarm Adds Only 22,000, Traders Increase Fed Rate Cut Bets
On Friday Eastern Time, the US Bureau of Labor Statistics reported that US job growth in August slowed significantly beyond expectations, nearly stalling, with substantial downward revisions to the prior two months, signaling a marked deterioration in the labor market.
This has led traders to increase bets on the Federal Reserve beginning rapid, consecutive rate cuts this month.
US Treasury Secretary Bessent: Fed Must Change Course
US Treasury Secretary Bessent stated that the Fed’s forecasts rely on “flawed models” and that the central bank must change its approach.
Trump Names Waller, Walsh, and Hassett as Fed Chair Candidates
Trump clarified he never said he would choose Hassett as Fed Chair, noting Hassett is among the top three candidates. Bessent, formerly the fourth candidate, leaves Waller, Walsh, and Hassett as the remaining trio.
Trump Again Urges Powell to Cut Rates, Criticizes ‘Too Late’ Action
On September 5 local time, US President Trump posted on his social media platform Truth Social, again criticizing Fed Chair Powell for acting “too late,” stating he should have cut rates earlier and is “once again too late.”
Trump Signs Executive Order Allowing ‘War Department’ Title for Defense Department
US President Trump signed multiple executive orders on September 5 from the Oval Office, including one allowing the Defense Department to use the “War Department” title in official contexts.
Trump remarked, “I think it’s a more fitting name, especially given today’s global situation.” The White House emphasized this does not change the legal name but adds a historical secondary title to reinforce military positioning.
Company News
Trump Criticizes EU Fine on Google, Considers Retaliation
Reports indicate US President Trump posted on Truth Social, criticizing the EU’s $3.5 billion fine on Google as “extremely unfair,” alleging it diverts funds meant for US investment and jobs. He noted this is one of many fines and taxes Europe has imposed on Google and other US tech firms in recent years.
Trump stressed his administration won’t tolerate “discriminatory behavior.” He warned that if Europe continues targeting US tech giants, he may invoke Section 301 procedures to overturn these “unfair penalties” to protect American taxpayers’ businesses. The European Commission announced a 29.5 billion euro ($3.5 billion) fine on Google on September 5 for abusing its dominant position in the ad tech market, harming competition.
Tesla Offers Musk Another ‘Sky-High’ Compensation Package, Could Make Him a Trillionaire if Fully Realized
Tesla released proposal documents to be voted on at the November shareholder meeting. Calculations suggest that if Musk maxes out this compensation package, Tesla stock alone could make him a trillionaire, not counting his stakes in SpaceX, xAI, and other top tech firms.
The new tiered plan could grant Musk up to an additional 423.7 million Tesla shares, valued at $143.5 billion based on yesterday’s close. However, securing these shares requires Tesla to hit various market cap thresholds, including a full $8.5 trillion—eight times its current value and double Nvidia’s current market cap.
Alibaba’s Tongyi Qianwen Releases Largest Model Yet—Qwen3-Max-Preview
Alibaba’s Tongyi Qianwen has launched Qwen3-Max-Preview (Instruct), a 1-trillion-parameter model, its largest to date, with significant enhancements in Chinese and English comprehension, complex instruction following, and tool usage, while greatly reducing knowledge hallucinations.
Forex & Commodities
OPEC+ will hold a meeting this weekend, with Saudi Arabia reportedly pushing for accelerated production increases.
International oil prices fell on the 5th, with WTI October crude futures closing at $61.87 per barrel, down 2.54%—the lowest since May; Brent November crude futures closed at $65.50 per barrel, down 2.22%.
Spot gold once rose to $3,600, hitting a new all-time high. Year-to-date, spot gold has climbed $976, up 37%.
At the New York close, the US Dollar Index fell 0.56% to 97.74, with most non-US currencies rising.
Key Events
Spot Gold Breaks $3,600, Hits New All-Time High; Weak Nonfarm Data Strengthens Rate Cut Expectations
During Friday’s US trading session, driven by weak nonfarm employment data, market expectations of a Federal Reserve rate cut intensified, accelerating gold’s strong rally, breaking the key $3,600/oz level for the first time.
Spot gold’s intraday gain expanded to 1.5%, up over $970 year-to-date, a 37% rise. NYSE gold futures rose 1.3% to $3,651.90.
Saudi Arabia Reportedly Pushes OPEC+ to Advance Oil Output: Market Share vs. Price Stability Tensions Escalate
Insiders reveal that OPEC+ leader Saudi Arabia wants the group to consider restoring more oil production earlier to reclaim market share, rather than waiting until year-end as originally planned. Major OPEC+ members will hold a video conference this Sunday to discuss handling the currently suspended 1.66 million barrels/day quota.
Cryptocurrency
Bitcoin fell 0.06% in the last 24 hours to $110,655.
Ethereum (ETH-USD) rose 0.19% to $4,306.
XRP (XRP-USD) up 0.73%, BNB (BNB-USD) up 0.72%, and Solana (SOL-USD) up 0.45%.
Dogecoin (DOGE-USD) up 2.54%, and Cardano (ADA-USD) up 2.60%.
Key Events
Sora Ventures Launches Asia’s First $1 Billion Bitcoin Treasury Fund
According to Bitcoin Magazine, Sora Ventures announced at Taipei Blockchain Week the launch of Asia’s first $1 billion Bitcoin treasury fund, with $200 million in initial commitments, planning to complete BTC purchases within six months.
The fund aims to pool institutional capital, supporting treasury models like Japan’s Metaplanet, Hong Kong’s Moon Inc., Thailand’s DV8, and South Korea’s BitPlanet, while promoting more Bitcoin treasury firms. Sora founder Jason Fang stated this marks Asia’s first collective effort to position Bitcoin as a regional and global strategic reserve asset.