ADDX GO Market Morning Wrap - 19th Sep
Stock Market
On Thursday Eastern Time, the US stock market’s three major indices closed at fresh highs, with the Federal Reserve’s rate cut boosting investor confidence and Nvidia’s stake in Intel sparking a chip stock rally.
Large tech stocks were mixed: Nvidia rose 3.49%, Google A gained 1%, Meta edged up 0.58%, Amazon slipped 0.17%, Microsoft fell 0.31%, Apple dropped 0.46%, and Tesla declined 2.12%.
Intel surged 22.77%, marking its best single-day performance in about 38 years, after Nvidia announced a $5 billion investment and a joint venture to develop PC and data center chips.
The latest data from the US Labor Department showed a drop in initial jobless claims last week, but the overall labor market is cooling, with both demand and supply for workers weakening.
Economists note that part of the slowdown in hiring demand stems from uncertainty around import tariffs; meanwhile, tighter immigration policies have cut labor supply, creating the “delicate balance” Fed Chair Powell described on Wednesday.
Carl Weinberg, chief economist at High Frequency Economics, said, “We heard plenty of negative job market talk from the Fed’s statement and Powell yesterday, but the steady trend in initial claims remains well below recession levels, weakening the case for more or bigger rate cuts from the Fed or markets.”
The Fed cut the federal funds rate by 25 basis points on Wednesday and expects a steady easing pace for the rest of 2025 to support the job market.
Powell stressed that a softening labor market will be a key focus, hinting at possible further cuts at future meetings.
Sam Stovall, chief investment strategist at CFRA Research, said, “We’re looking for growth support and justification for current high valuations, and the prospect of lower rates helps with that.”
The Russell 2000 small-cap index climbed 2.4% to a record high. Small-cap firms, which rely more on external financing for operations and growth, benefit more from low rates compared to cash-rich big corporations. Plus, unlike tech giants riding the AI wave, small caps are more tied to economic cycles.
Fawad Razaqzada of City Index and Forex.com noted, “Investors are eager to buy dips, driven by AI enthusiasm and solid earnings from big tech. But if tech momentum fades, other market segments might struggle to hold valuations, raising concerns.”
He added that this rally could turn fragile if investor confidence wavers, urging a cautious stance on S&P 500 prospects.
Meanwhile, Trump continues his “assault” on the Fed, potentially stirring market turbulence. The US Justice Department on Thursday asked the Supreme Court to overturn a lower court ruling, allowing President Trump to fire Fed Governor Lisa Cook.
Global Hotspots
Over 500,000 Strike in France Against Government Austerity Plan
Strikes and protests hit multiple French cities on the 18th. Government stats show over 500,000 participated nationwide, with about 55,000 in Paris. This marks another large-scale protest against the government’s austerity measures.
Milei Government Pressure Mounts, Argentina Dollar Bonds Hit Near-Year Low
As pressure grows on Argentine President Javier Milei’s government, the country’s dollar bonds ranked among the worst performers in emerging markets on Thursday, on track for the longest losing streak since April.
Investors had hoped next month’s mid-term elections would boost Milei’s parliamentary support for economic reforms. But rising opposition, economic contraction, and political setbacks—from corruption scandals to legislative blocks—have traders dumping assets.
Trump Seeks to Speed Up Major Power Projects to Meet AI Demand
The Trump administration is pushing to fast-track power plants, transmission lines, and other energy projects to meet rising electricity needs for AI and manufacturing. The US Department of Energy said Thursday that this plan comes as demand growth outpaces the current grid.
The agency aims to leverage its technical expertise and billions in funding, seeking help from the National Energy Office, utilities, and others to identify big power and grid projects.
Trump Admin Requests Supreme Court Approval to Fire Fed Governor Cook
On Thursday local time, the US government asked the Supreme Court to overturn a lower court decision, allowing President Trump to dismiss Fed Governor Lisa Cook.
Deputy Attorney General John Sol in a filing to the court wrote, “This case involves an improper judicial intrusion into the president’s removal power, specifically his authority to dismiss Fed Board members for cause.” Sol argued the Supreme Court should stay the district court’s preliminary injunction, removing Cook from her role during litigation.
Corporate News
Nvidia’s $5 Billion Intel Stake! 25 Years Ago Intel Outshone Nvidia, Now the Tables Turn
On September 18, Nvidia’s website confirmed it will invest $5 billion in Intel and announced a partnership to jointly develop AI infrastructure and PC products. Under the deal, Intel will customize x86 CPUs for Nvidia’s data center platforms, while producing x86 system-on-chips (SoCs) with Nvidia’s RTX GPUs for PCs.
No timeline was given for initial products, and both say this won’t alter their existing plans. $NVDA
Musk Clarifies Tesla Optimus Robot 10,000-Unit Order: Fake
Recent rumors of Tesla securing a 10,000-unit “Optimus 3+” order took a twist. It started when Bright Green, traded on the US pink sheets, announced on September 15 a merger with PharmAGRI Capital Partners, appointing major shareholder Lynn Stockwell as chairman and CEO of the new entity.
Buried in this routine notice was a shocker: obscure PharmAGRI claimed a letter of intent (LOI) with AI and EV leader Tesla to deploy up to 10,000 Optimus 3+ robots in its farms and drug production, aiming to cut low-wage repetitive work under labor laws. After days of buzz, Musk responded: fake. $TSLA
Google to Integrate Gemini into Chrome Browser
Google announced Thursday it will deeply integrate its in-house Gemini model into the Chrome browser for Mac, Windows, and mobile users across the US. Features include explaining visited webpages, consolidating multiple tabs, and restoring closed sites on request.
Gemini ties in closely with Google apps like Calendar, YouTube, and Maps, letting users access them without switching pages. Senior VP of Platforms and Devices Rick Osterloh said, “We’re upgrading Chrome to unlock the internet in new ways, while keeping its loved speed, simplicity, and safety.” $GOOG $GOOGL
Microsoft Pledges Over $7 Billion for ‘World’s Most Powerful AI Data Center’ in Wisconsin
On Thursday local time, tech giant Microsoft unveiled ambitious plans to build the “world’s most powerful AI data center” in Mount Pleasant, Wisconsin. Building on a $3.3 billion data center already under construction, the company announced an additional $4 billion for a second site.
President and Vice Chairman Brad Smith revealed at a local town hall that the first center will house “hundreds of thousands” of Nvidia Blackwell GB200 GPUs, set to open in early 2026, with the second, similarly sized, following in 2027 or later. CEO Nadella touted it as the “world’s most powerful AI data center” on social media. $MSFT
Forex & Commodities
WTI October crude futures fell 0.75% to $63.57 per barrel; Brent November crude futures dropped 0.75% to $67.44 per barrel.
COMEX gold futures declined 1.1% to $3,678 per ounce; COMEX silver futures eased 0.12% to $42.1 per ounce.
At New York’s close, the US Dollar Index rose 0.34% to 97.37, with most non-US currencies weakening.
Key Events
Rate Cut ‘Shoe Drops,’ Gold Spikes Then Falls; Precious Metals Seen Bullish Long-Term
After a nine-month hiatus, the Fed restarted rate cuts, lowering the federal funds rate target range by 25 basis points to 4.00%-4.25%.
Post-cut, gold prices, which had risen sharply on rate cut hopes, pulled back from above $3,700 per ounce to around $3,650.
Industry analysts say geopolitical tensions and loose monetary policy support a sustained precious metals bull run, with historical data showing Fed cuts boost these markets. Long-term, the “de-dollarization” trend and central banks’ ongoing gold buying should prop up prices.
Cryptocurrency
Bitcoin rose 0.50% in 24 hours to $117,024.
Ethereum (ETH-USD) edged up 0.01% to $4,586.69.
XRP (XRP-USD) gained 0.13%, BNB (BNB-USD) fell 0.45%, and Solana (SOL-USD) rose 1.20%.
Dogecoin (DOGE-USD) dropped 1.06%, and Cardano (ADA-USD) climbed 1.61%.
Key Events
Analysis: 70% Chance Bitcoin Hits New High in Two Weeks
Bitcoin, now near $117,800, has a 70% chance of a short-term peak, analysts say.
Since September 9, exchange-traded fund (ETF) inflows have hit $2.8 billion, and futures markets lean bullish, backing this optimism. Though liquidity around $114,000 could trigger a pullback, researcher Axel Adler Jr. sees a consolidation or stepwise rise ahead. A close above $117,500 would confirm the breakout and lower downside risks.
