ADDX GO Market Morning Wrap - 11th Sep

Stock Market

Last Night and This Morning: Driven by an unexpected cooldown in US August PPI data and Oracle’s AI narrative, both the S&P 500 and Nasdaq indices hit new intraday and all-time closing highs. The Dow, however, closed lower, dragged down by falling Apple stock among other factors.  

 

At close, the S&P 500 rose 0.3% to 6,532.04 points; the Nasdaq Composite gained 0.03% to 21,886.06 points; and the Dow Jones Industrial Average fell 0.48% to 45,490.92 points.  

 

(S&P 500 daily chart, source: TradingView)  

 

Oracle surged nearly 36% to a record high, boosting its market cap by approximately $250 billion intraday. Most major tech stocks declined, with Amazon and Apple dropping over 3%, Meta and Netflix falling more than 1%, while Nvidia rose over 3%. Swedish digital payments firm Klarna Group’s US IPO debuted with a gain of over 14%.  $AAPL $META $NFLX $ORCL 

 

It’s worth noting that US stocks opened higher on Wednesday but trended downward with sustained volatility. Compared to PPI, the more significant US August CPI data, due before Thursday’s market open, carries greater weight.

 

About four-fifths of CPI and PPI data feed into the Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures Price Index. CPI will also be the last key data point before the Fed’s rate decision next week.  

 

The US rates strategy team at BMO Capital said investors are now weighing how much August’s employment figures, baseline revisions, and PPI should influence next week’s discussion on a 50-basis-point rate cut. The team still leans toward a 25-basis-point cut. For a half-point cut to become plausible, Thursday’s core CPI data would need to disappoint significantly.  

 

Per tradition, JPMorgan’s trading desk released its “CPI Day Battle Plan,” indicating that if the US August core CPI month-over-month growth falls below 0.25%, the S&P 500 could rise 1.25% to 1.75%; if it exceeds 0.4%, the index could drop 1.5% to 2%.  

Global Hotspots

US PPI Inflation Cools More Than Expected, Strengthening Fed’s Case for Rate Cuts  

 

The unexpected cooldown in US PPI inflation has bolstered the Federal Reserve’s rationale for rate cuts. The US Bureau of Labor Statistics reported on Wednesday (September 10) that the August PPI fell 0.1% month-over-month, the first negative growth since April, against an expected 0.3% rise.  

 

US Senator Proposes AI Sandbox to Ease Tech Regulation  

 

On Wednesday local time, Republican Senator Ted Cruz, current chair of the Senate Commerce Committee, introduced a bill allowing AI companies to seek exemptions from certain federal regulations to foster greater flexibility in new technology development.

 

The committee held a subcommittee hearing to discuss how Congress can lower regulatory barriers for the tech sector, helping US firms gain an edge in this critical tech race.  

 

Tech Stock Trading Gets New Tool: Cboe Plans Product Tracking “Magnificent 10”  

 

The Chicago Board Options Exchange (Cboe) announced it will launch a product tracking the “US Tech Top 10,” offering traders a new way to bet on these mega-cap tech stocks.

 

On Wednesday (September 10), Cboe Global Markets Inc. revealed on its website plans for a theme-based equal-weight benchmark index, the “Cboe Magnificent 10 Index” (MGTEN).  

 

US Economic Data Faces Trust Crisis, Labor Department Watchdog Steps In  

 

The Labor Department’s internal watchdog announced it is investigating how the Bureau of Labor Statistics (BLS) collects employment and inflation data. On Wednesday (September 10), the Office of Inspector General (OIG) sent an open letter to BLS Acting Commissioner William Wiatrowski, signaling readiness to review challenges in data collection and reporting.  

Corporate News

Robinhood Launches Social Media Platform to Display Traders’ Holdings in Real Time  

 

Newly added to the S&P 500, zero-commission online broker Robinhood is expanding its boundaries with a new platform allowing users to view and track other traders’ activities in real time. The company’s website shows the “Robinhood Social” feature, set to launch early next year, will display verified traders’, prominent investors’, and congressional members’ transactions.

 

Unlike traditional social media posts, Robinhood will require identity verification and proof of actual holdings.  $HOOD 

 

Oracle’s “Explosive Growth” Driven by Reported $300 Billion, 5-Year OpenAI Contract  

 

As Wednesday’s standout global stock, legacy tech giant Oracle surged over 40% intraday, briefly making founder Larry Ellison the world’s richest person. By press time, Oracle’s gain exceeded 36%, adding $251 billion (about 1.78 trillion yuan) to its market cap. However, the rally’s logic faced scrutiny later that evening.  

 

Amazon Unveils AR Glasses Strategy, Challenges Meta’s Dominance  

 

Latest market intel reveals tech giant Amazon is rapidly entering the AR glasses race. Coinciding with industry leader Meta’s upcoming next-gen AR glasses launch next week, competition is heating up. Two insiders say Amazon is developing two AR glasses: “Amelia,” aimed at delivery staff for sorting and package delivery, and “Jayhawk,” targeted at consumers.  $AMZN 

 

Amazon’s Zoox Officially Launches Robotaxi Service, Rivals Tesla, Waymo, Uber  

 

On Wednesday (September 10) local time, Amazon’s autonomous driving unit Zoox launched its Robotaxi service in Las Vegas, doubling down in a field competing with Tesla, Google’s Waymo, Uber, and Lucid.  

Forex & Commodities

At close, NYMEX WTI crude futures for the front month rose $1.04 to $63.67 per barrel, up 1.66%; London Brent crude futures gained $1.10 to $67.49 per barrel, up 1.66%.  

 

COMEX gold futures for the front month fell $0.20, or 0.01%, to $3,682.0 per ounce.  

 

In late New York trading, the US Dollar Index rose 0.09% to 97.85, with most non-US currencies declining.  

Key Events

Deutsche Bank: US Could Use Stablecoins to Defend Dollar Dominance  

 

Deutsche Bank suggests that developing USD-pegged stablecoins could protect the dollar’s global dominance, a prospect “not to be overlooked.” Strategist Mallika Sachdeva wrote in a report, “Stablecoins seem to be the US answer to defending the dollar’s role in the global payment system, opting for private-sector solutions over central bank digital currencies…

 

The dollar’s share in central bank reserves has been declining, and competition in global payments is intensifying, with dollar correspondent banks facing disruptions from new technologies, geopolitical rivalry, and alternative payment systems.”  

Cryptocurrency

Bitcoin rose 2.31% in 24 hours to $113,893.  

 

Ethereum (ETH-USD) gained 0.99% to $4,342.  

 

XRP (XRP-USD) rose 1.34%, BNB (BNB-USD) rose 1.44%, and Solana (SOL-USD) rose 3.97%.  

 

Dogecoin (DOGE-USD) fell 2.39%, and Cardano (ADA-USD) rose 2.33%.  

Key Events

Crypto Hype Fades, Bitcoin-Holding Companies Plummet  

 

As the crypto frenzy that swept investors subsides, the stock prices of companies hoarding Bitcoin and other cryptocurrencies have dropped sharply.  

 

These firms typically raise funds through stock or bond sales to buy crypto and list it on their balance sheets. This year, amid US President Donald Trump’s support for crypto and Bitcoin’s record high, investors rushed to buy these companies’ listed stocks.  

 

The most notable Bitcoin holder, Michael Taylor’s Strategy, saw its stock fall from $457 in July to $328 this week, the lowest since April, with its year-to-date gain narrowing to 13%.