ADDX GO Market Morning Wrap - 20th Sep
Stock Market
On Friday Eastern Time, Wall Street capped a record-breaking week with the Federal Reserve’s rate cut driving the three major indices to fresh highs.
Large tech stocks broadly rose: Tesla gained 2.21%, Microsoft climbed 1.86%, Nvidia edged up 0.24%, Google A rose 1.07%, Amazon ticked up 0.11%, and Meta dipped 0.24%.
This week, the Fed cut its benchmark rate by 25 basis points—the first reduction since December last year. Though fully priced in by markets, the move triggered sharp volatility after Fed Chair Powell labeled it a “risk-management cut.” The major indices then stabilized and rose over the next two days.
Piper Sandler analysts said the Fed’s cut sets an optimistic tone for stocks, predicting short-term consolidation. “The recent highs are likely a mid-cycle pause in this bull run, with more records to come.”
New Fed Governor Stephen Milan said he had only a brief chat with President Trump before this week’s rate decision and faced no pressure on how to vote.
Milan advocated for a bolder 50-basis-point cut, insisting it was an independent call. “I analyze data and the economy on my own; that’s all I do, and all I’ll do.”
Minneapolis Fed President Neel Kashkari backed this week’s 25-basis-point cut and sees two more 25-basis-point cuts at the year’s final meetings as appropriate.
Nationwide chief market strategist Mark Hackett noted, “September often sees pullbacks historically, but this year’s market defied that, up 35% since March, with technicals and fundamentals providing strong support. Still, with the S&P 500’s forward P/E at 22 and low volatility, a period of consolidation or oscillation would be normal and healthy.”
Separately, the US Senate rejected a short-term spending bill on Friday, raising the risk of a government shutdown. The bill aimed to fund operations until late November.
Wells Fargo senior global market strategist Scott Wren warned that with slowing growth, emerging tariff impacts, and ongoing political uncertainty, stocks could grow more volatile after hitting record levels.
Global Hotspots
US Senate Rejects Temporary Funding Bill; Trump: Government May Shut Down in October
On Friday local time, a Republican funding bill passed by the House failed in the Senate. President Trump warned of rising shutdown risks due to stalled Republican-Democrat talks, saying in the Oval Office, “We’ll keep negotiating with Democrats, but I think the US will likely ‘close’ for a while.”
Trump Signs Order Adding $100,000 Fee to H-1B Visas
President Trump signed an executive order overhauling the H-1B visa program, requiring a $100,000 annual fee per applicant or denial of entry. The rule hikes the cost for companies to $100,000 per H-1B worker, ensuring imported labor is “truly highly skilled and irreplaceable.” The White House stressed this will push firms to prioritize training local talent.
US Ends Legal Status for Thousands of Syrian Immigrants
The Department of Homeland Security terminated Temporary Protected Status (TPS) for Syrian immigrants in the US, citing that continuing the humanitarian program “no longer serves US interests.” Spokesperson McLaughlin emphasized TPS is temporary, not a long-term stay option.
The decision affects about 4,000 Syrians, whose status expires in 60 days; without other legal status, they face arrest or deportation. The US urges “voluntary departure.” Syria’s TPS, set up in 2012 under Obama to address the civil war, was extended multiple times, including during Trump’s first term.
Portugal to Recognize Palestine on September 21
Portugal’s Foreign Ministry declared it will formally recognize Palestine on September 21 local time. At a high-level international conference on resolving the Palestinian issue and implementing a two-state solution, held July 28-30 at UN headquarters in New York, foreign ministers from 15 Western nations, including France, Canada, and Australia, jointly expressed intent to recognize Palestine, urging others to follow.
IOC Allows Russian, Belarusian Athletes as Neutrals for Milan Winter Olympics
The IOC Executive Board decided on the 19th in Milan to permit Russian and Belarusian athletes to compete as neutral individuals in the 2026 Milan-Cortina Winter Olympics, under the same conditions as the 2024 Paris Games. The IOC website noted 32 athletes from these nations competed in 10 events in Paris.
Von der Leyen Proposes EU’s 19th Round of Sanctions on Russia
EU Commission President Ursula von der Leyen announced on the 19th a 19th round of sanctions against Russia, targeting energy and finance.
The measures ban Russian liquefied natural gas from Europe, cut the Russian crude oil price cap to $47.6 per barrel, impose full transaction bans on Russian oil traders and Gazprom Neft, expand banking restrictions, and add crypto platforms to the blacklist for the first time. Per EU procedure, all 27 member states must unanimously agree for the sanctions to take effect.
Corporate News
Oracle, Meta Discuss $20 Billion AI Cloud Deal
Oracle is negotiating a roughly $20 billion cloud computing deal with Meta, cementing its role as a key infrastructure provider. Insiders say the multi-year pact will supply Meta with computing power for training and deploying AI models.
The total commitment could rise, and other terms may shift before finalization. This contract boosts Oracle’s cloud business, which last week reported strong bookings, driving its stock to a record high.
xAI’s $100 Billion Financing at $2 Trillion Valuation? Musk Calls It Fake News!
Media citing sources reported Elon Musk’s AI startup xAI is raising $10 billion at a $200 billion valuation, following Anthropic’s $13 billion raise at $183 billion.
Industry leader OpenAI’s secondary market valuation now tops $500 billion. Musk debunked this on social media, calling it fake news and confirming xAI isn’t raising funds currently.
OpenAI Develops First Smart Hardware, Supply Chain May Overlap with Apple’s
Friday’s market buzz reveals OpenAI is working on mysterious devices, including a “screenless smart speaker,” with past considerations for glasses, recorders, and a wearable pin. Aimed for late 2026 or early 2027, Luxshare Precision reportedly secured assembly for at least one device.
Insiders say OpenAI also approached Goertek, which assembles AirPods, HomePod, and Apple Watch, for speaker modules and parts.
Forex & Commodities
WTI October crude futures fell 1.4% to $62.68 per barrel; Brent November crude futures dropped 1.13% to $66.68 per barrel.
COMEX gold futures rose 1.1% to $3,719 per ounce; COMEX silver futures climbed 2.96% to $43.36 per ounce.
The US Dollar Index, measuring the dollar against six major currencies, rose 0.3%, closing at 97.644 in late forex trading.
Key Events
Citi: Brent Crude Could Fall to $60/Barrel by End-2026
Citi analysts predict Brent crude will gradually decline to around $60 per barrel by late 2026. OPEC+’s decision to phase out its second round of cuts has intensified expectations of rising global oil inventories—Citi forecasts 1.1 million barrels per day added in 2025 and 2.1 million in 2026.
The quarterly outlook warns a “bearish scenario” could trigger if macro-economic and trade weakness cuts demand or supply growth outpaces forecasts. A less likely “bullish scenario” might stem from geopolitical shocks, like attacks on Russian energy infrastructure or escalated Israel-Iran conflict.
Cryptocurrency
Bitcoin fell 1.47% in 24 hours to $115,668.
Ethereum (ETH-USD) dropped 2.97% to $4,469.69.
XRP (XRP-USD) declined 2.96%, BNB (BNB-USD) rose 0.18%, and Solana (SOL-USD) fell 3.67%.
Dogecoin (DOGE-USD) dropped 5.06%, and Cardano (ADA-USD) fell 4.25%.
Key Events
Solana Co-Founder: Bitcoin Must Accelerate Quantum Defense
Solana co-founder Anatoly Yakovenko said at the All-In 2025 Summit that the Bitcoin community must hasten quantum-resistant measures or face major security risks. He estimates a 50-50 chance of a breakthrough in five years. Yakovenko urges a swift shift to quantum-safe signature schemes, citing rapid tech convergence, especially AI’s leap from theory to application, and calls for industry action.