ADDX GO Market Morning Wrap - 13th Sep

Stock Market  

Last night and this morning, the joy of U.S. stocks repeatedly hitting new highs in recent days came to a weary end on the last trading day of the week.  

 

At the close, the S&P 500 briefly hit 6,600 for the first time intraday but then plunged, ultimately falling 0.05% to 6,584.29 points; driven by Tesla's strong surge, the Nasdaq Composite rose 0.44% to 22,141.1 points, marking its fifth consecutive closing record high this week; the Dow Jones Industrial Average fell 0.59% to 45,834.22 points.  

 

Over the entire week, all three major indices recorded new highs. The S&P 500 rose 1.59% cumulatively, the Dow up 0.95%, and the Nasdaq up 2.03%.  

 

For the U.S. stock market, the next key node is the Fed's decision and Powell's press conference next Wednesday. Markets generally expect 2-3 rate cuts this year, with uncertainty at the late October meeting. Thus, the Fed officials' economic projections (dot plot) will also be scrutinized for clues on the last two meetings this year.  

 

Among major investment banks, Morgan Stanley first called for "four consecutive Fed rate cuts." TD Securities believes that due to a soft labor market, next week's policy may be "dovish," but inflation risks will limit the dovishness.  

 

Nationwide Life's market strategy analyst Mark Hackett said the Fed is likely to cut rates next week, and market sentiment is far from complacency, meaning the path of least resistance for stocks in the short term remains upward. He pointed out: "Rate cuts will add to the growing positive factors—from stimulative fiscal budget agreements and trade deals to boosts in corporate earnings from a weaker dollar."

Global Hotspots  

Trump political ally Charlie Kirk murder suspect arrested  

 

U.S. FBI Director Patel and Utah Governor Cox confirmed on Friday that Tyler Robinson, the suspect in the shooting death of President Trump's political ally Charlie Kirk, has been detained.

 

Cox said that on the evening of September 11, Robinson's family first contacted a friend, who then informed the Washington County Sheriff's Office that Robinson had confessed or implied his involvement to his family, and the information was passed to the Utah County Sheriff's Office.  

 

Insiders also revealed that Robinson admitted to his father that he was the shooter, and after his father reported it, police took him into custody. Utah Governor Cox confirmed this, stating that Tyler Robinson was detained on the evening of the 11th, with family assistance in reporting and delivering him to authorities.

 

France, Germany, and UK issue joint statement calling for Israel to immediately halt military actions in Gaza City  

 

The foreign ministries of France, Germany, and the UK issued a joint statement on September 12 local time, urgently calling for Israel to immediately stop military actions in Gaza City.

 

The statement read: "We urgently call for an immediate halt to military actions in Gaza City, which have caused massive civilian displacement, serious civilian casualties, and destruction of key infrastructure." Previously, the Israeli military announced it would intensify strikes on Gaza City, raising strong concerns in several European countries.

 

Last year eggs, this year beef? U.S. dinner table inflation nightmare continues  

 

Last winter, eggs were the symbol of U.S. food inflation. Now, hamburgers may be next. International meat trader Parker-Migliorini International (PMI Foods) said U.S. beef prices are in a sustained surge, potentially setting new records in the coming months.

Company News  

U.S. government launches accelerated eVTOL pilot project  

 

On Friday local time, the Trump administration announced a new pilot project to accelerate the deployment of "air taxis." As companies continue to break regulatory barriers for air travel, the U.S. government hopes to push industry implementation through this initiative.

 

Boosted by the news, air taxi concept stocks rose, with Joby Aviation up over 10% in early trading and closing up 2.34%; Archer Aviation rose 3.06%.

 

FDA clears Apple Watch hypertension alert feature  

 

Apple said its Apple Watch hypertension monitoring feature was approved by the U.S. Food and Drug Administration (FDA) on Thursday (September 11), and the system will launch in the U.S. market next week.

 

Multiple COVID vaccine stocks plunge; Moderna responds  

 

At Friday's close, Moderna fell 7.4%, Pfizer dropped 3.98%, and BioNTech SE declined 7.26%. Reports indicate U.S. officials plan to link 25 child deaths to COVID vaccines.  

 

Moderna subsequently issued a statement saying regulators in over 90 countries have not found any undisclosed safety issues with its COVID vaccine for children or pregnant women.

 

BlackRock executive Rick Rieder reportedly joins Fed chair hot list  

 

Reports say BlackRock's global fixed income chief investment officer Rick Rieder is rapidly becoming a top contender to succeed Jerome Powell as the next Fed chair.

 

Powell's term ends in May next year. The source said Treasury Secretary Scott Bessent met with Rieder in New York for two hours on Friday, discussing monetary policy, Fed structure, and regulatory policies.  

 

The official said Bessent has interviewed four of the 11 publicly listed Fed chair candidates and emphasized the selection process is ongoing.

 

Tesla chairman: Only Musk can lead the company in the next phase, but he may not necessarily be CEO  

 

Tesla board chair Robyn Denholm said publicly on Friday that besides Elon Musk, no one can lead the company through the transition to AI and robotics. But Denholm also mentioned Musk could take other leadership roles, such as chief product officer, and this has been considered in the latest compensation plan.  

 

Denholm also said that if Musk suddenly leaves, Tesla has contingency plans for appointing a new CEO and processes for identifying his eventual successor.

Forex & Commodities  

International oil prices rose on September 12.  

 

At the close, NYMEX WTI crude futures for the month settled up 0.32 dollars to 62.69 dollars per barrel, a 0.51% gain; London Brent crude futures for the month rose 0.62 dollars to 66.99 dollars per barrel, a 0.93% increase.  

 

COMEX gold futures for the month rose 12.80 dollars, or 0.35%, to 3,686.4 dollars per ounce.

Key Events  

Cryptocurrency  

Bitcoin was nearly flat in 24 hours, at 116,286 dollars.  

 

Ethereum (ETH-USD) rose 3.93 to $4,703.  

 

XRP (XRP-USD) up 1.16%, BNB (BNB-USD) up 2.10%, and Solana (SOL-USD) up 4.37%.  

 

Dogecoin (DOGE-USD) up 5.04%, and Cardano (ADA-USD) up 1.88%.

Key Events  

World’s largest USD stablecoin issuer enters U.S., launches compliant stablecoin  

Tether, the issuer of the world’s largest stablecoin USDT, announced on Friday that it will launch a new stablecoin, USAT, in accordance with U.S. stablecoin legislation, and has appointed former White House advisor Bo Hines to lead its U.S. operations.  

Though it may seem surprising, this marks a historic moment as the largest USD stablecoin issuer formally accepts U.S. regulatory oversight. USDT was once accused by regulators of being a “preferred tool for criminals,” but Tether has since stated it collaborates with law enforcement to freeze assets.  

Market data shows USDT’s global issuance reaches $169.5 billion, more than double that of the second-largest stablecoin, USDC, at $72.8 billion. However, USDC issuer Circle obtained a key New York digital currency license a decade ago.