ADDX GO Market Morning Wrap - 24th Sep

Stock Market

On Tuesday Eastern Time, concerns about the sustainability of the artificial intelligence (AI) bull market led to a collective decline in the three major U.S. indices, with the Nasdaq falling about 1%, driven largely by drops in AI-related stocks like Nvidia, Oracle, and Amazon.  

 

(Intraday chart of the three major indices, Source: TradingView)  

 

At the close, the Dow Jones Industrial Average fell 0.19% to 46,292.78 points; the S&P 500 dropped 0.55% to 6,656.92 points; and the Nasdaq declined 0.95% to 22,573.47 points.  

 

The three indices had previously hit record highs for three consecutive trading days.  

 

Nvidia’s stock fell 2.8%. The day before, the chip giant announced a potential $100 billion investment in OpenAI, which had initially boosted its stock and lifted the broader market.

 

However, some investors reassessed this customer-supplier deal, likening it to transactions from the dot-com bubble era. Questions also arose about whether the two star AI companies have enough energy resources to support their expansion plans.  

 

Oracle dropped 4.4% on Tuesday, despite gaining over 50% in the past three months on optimistic AI sales expectations.  

 

Amazon fell over 3%, with the e-commerce giant facing multiple legal and regulatory challenges.  

 

“It’s a bit of a tale of two markets,” said Lou Liberatore, research director at Alexandria Capital. “On one side, companies benefiting from AI are driving the market up, while the rest are just treading water.”  

 

On the Nvidia-OpenAI deal, Gil Luria, tech research head at D.A. Davidson, commented, “While Nvidia’s investment in OpenAI initially sparked a positive reaction, investors quickly realized that OpenAI may currently rely on Nvidia as its only source of funding, making Nvidia the ‘lender of last resort.’”  

 

Luria added, “OpenAI has made commitments far beyond its means, and Nvidia may be the only equity investor willing to provide the funds.”  

 

Fed Chair Jerome Powell heightened market concerns about overvaluation on Tuesday, noting in a Q&A that stock prices are indeed relatively high.  

 

Powell’s remarks on monetary policy offered no new insights.  

Global Hotspots

Trump Says Ukraine’s Borders Could Be “Restored”  

 

On September 23, U.S. President Donald Trump said he now believes Ukraine, with EU and NATO support, could “win back all of Ukraine and restore its original state.”  

 

In a social media post, Trump said he understands the military and economic conditions of Ukraine and Russia, noting that the over three-and-a-half-year war has created economic hardship for Russia.

 

With EU financial backing, NATO military support, time, and patience, returning to “the original borders before the war started is a fully viable option.” He added that the U.S. will continue supplying weapons to NATO allies.  

 

EU Official: U.S. Climate Policy Is “Suicidal”  

 

EU Commission Vice President Ribera warned that if the U.S. “forgets the rest of the world” and exits global climate talks, it would be “shocking” and potentially “suicidal.”  

 

Ribera added that she hopes other U.S. forces, including business owners, mayors, and governors, will push for investment in alternative energy rather than relying on fossil fuels.  

 

In his UN General Assembly speech that day, President Trump criticized renewable energy like wind as “expensive, inefficient, and subsidy-dependent,” calling it a “scam.”  

 

In January this year, Trump announced the U.S. would again withdraw from the Paris Agreement.  

 

UN Report: Israel Seeks Permanent Control Over Gaza, Dominance in West Bank  

 

On September 23, a UN investigative committee said Israel’s government has expressed clear intent to establish permanent control over the Gaza Strip and ensure Jewish dominance in the occupied West Bank.

 

The UN report detailed Israel’s large-scale, systematic demolition of civilian infrastructure in Gaza and its buffer zone, expanding Israeli control to 75% of the Gaza Strip by July this year.  

 

Iran’s Supreme Leader: No Benefit in Negotiating with U.S.  

 

On September 23, Iran’s Supreme Leader Khamenei said in a televised speech that under current circumstances, negotiating with the U.S. government offers Iran no benefits and cannot mitigate any harm.  

 

He said negotiations would bring irreparable losses, noting that the U.S. demands Iran shut down its nuclear industry and halt uranium enrichment, which he called imposition, not negotiation. The U.S. also claims Iran should not have missiles, meaning Iran would be defenseless against attacks.  

 

Poll Shows Slight Decline in Trump’s Approval Rating  

 

A poll showed that concerns about the U.S. economy and the government’s ability to control rising prices have slightly eroded Trump’s approval rating in recent weeks.  

 

The survey found 41% of respondents approve of Trump’s performance as president, down from 42% in early September. About 54% said the economy is on the wrong track, up from 53% in August and 52% in July.  

 

Only 35% approved of Trump’s economic management, and 28% supported his handling of living costs, both slightly lower than prior polls.  

 

Trump Admin Plans H-1B Visa Lottery Reform, Prioritizing High-Salary, High-Skill Applicants  

 

On September 23, the U.S. Department of Homeland Security announced in the Federal Register that the Trump administration plans to adjust the H-1B visa application process, introducing a weighted selection mechanism to prioritize higher-skilled, higher-paid applicants in the annual quota lottery. The rule will be officially published on September 24.  

 

The announcement said this would increase the chances of high-wage H-1B applicants being selected, improving employers’ ability to recruit foreign talent for high-skill roles. It emphasized that H-1B visas have quotas and exemptions, but in high-demand contexts, the government can enhance efficiency through process improvements.  

 

H-1B Visa Fee Surge Sparks Chaos in Silicon Valley  

 

President Trump recently signed a proclamation raising the cost of H-1B temporary work visa applications from a few thousand dollars to $100,000, effective September 21. U.S. media reported that the sudden fee hike has caused chaos among tech firms.  

 

Some companies have advised employees to avoid travel or delay international plans due to concerns that the new rule could complicate visa renewals or reapplications. Though the government clarified the rule applies only to new visas, the confusion highlights the challenges U.S. firms face.  

Company News

OpenAI, Oracle, and SoftBank Announce Five New “Stargate” Data Centers  

 

On Tuesday, OpenAI, Oracle, and SoftBank Group announced plans to build five new data centers across the U.S. to expand the government-backed AI project “Stargate.”  

 

OpenAI and Oracle will co-build three, located in Shackelford County, Texas; Doña Ana County, New Mexico; and an undisclosed Midwest site.  

 

The other two will be built by OpenAI and SoftBank in Lordstown, Ohio, and Milam County, Texas.  $ORCL 

 

“Wood Sisters” Hold Alibaba for First Time in Four Years, Worth Over $16 Million  

 

Cathie Wood’s funds bought Alibaba Group Holding Ltd. stock for the first time in four years, as the stock surges to multi-year highs due to Alibaba’s AI progress.  

 

A daily trading report from Ark Invest Management showed that on Monday, two of its ETFs purchased Alibaba’s U.S. ADRs, valued at about $16.3 million based on fund holdings.  $BABA 

 

U.S. Antimony Corp Secures $245 Million Exclusive Pentagon Contract  

 

On Tuesday, U.S. Antimony Corp announced a five-year exclusive contract with the U.S. Defense Logistics Agency, worth up to $245 million, to supply antimony metal ingots for defense reserves.  

 

The news drove the company’s stock up over 13% at Tuesday’s close.  

 

Micron Technology Q4 Revenue Jumps 46% Year-Over-Year  

 

Micron Technology’s Q4 adjusted revenue was $11.32 billion, up 46%, beating estimates of $11.15 billion. Adjusted EPS was $3.03, compared to $1.18 last year, surpassing estimates of $2.84. The company projects Q1 2026 revenue of $12.2 billion to $12.8 billion, with adjusted gross margins of 50.5%-52.5%.  

 

Micron said AI-driven demand is accelerating growth, with DRAM supply tightening.$MU   

 

U.S. Air Force Chief of Staff: Sixth-Gen F-47 Fighter Being Built by Boeing  

 

On September 22, U.S. Air Force Chief of Staff David Allvin announced that the Air Force’s first sixth-generation fighter, the F-47, is being manufactured by Boeing, with its first flight expected in 2028.  

Forex & Commodities  

WTI crude oil futures rose 1.81% to $63.41 per barrel. Brent crude oil futures gained 1.6% to $67.63 per barrel.  

 

COMEX gold futures rose 0.58% to $3,796.9 per ounce; COMEX silver futures edged up 0.12% to $44.265 per ounce.  

 

At the New York close, the U.S. dollar index fell 0.08% to 97.23, with most non-U.S. currencies rising.  

Key Events

Crude Oil: Prices Halt Four-Day Slide as Threats to Russian Supply Intensify  

 

Oil prices rose on Tuesday, ending a four-day decline, as traders assessed growing threats to Russian supply, from Ukrainian attacks on its energy assets to a potential diesel export ban.  

 

WTI crude climbed 1.8% to just under $63, marking its biggest daily gain since early September. Following Ukrainian drone strikes on Russian refineries, Russia’s government is considering a diesel export ban for some companies.  

 

“If Russian refined products can’t be exported, reduced refining could lead to a short-term increase in Russian crude exports,” said Rebecca Babin, senior energy trader at CIBC Private Wealth Group. “But this can only last until production halts.”  

Cryptocurrency  

Bitcoin fell 0.57% over 24 hours to $112,084.  

 

Ethereum (ETH-USD) dropped 0.81% to $4,170.43.  

 

XRP (XRP-USD) fell 0.68%, BNB (BNB-USD) rose 2.51%, and Solana (SOL-USD) declined 2.69%.  

 

Dogecoin (DOGE-USD) fell 1.45%, and Cardano (ADA-USD) dropped 2.00%.  

Key Events

Who Can Power AI Now? Bitcoin Miners’ Undervalued Potential  

 

The explosive growth of AI is driving unprecedented demand for electricity, with limited immediate supply.  

 

A Morgan Stanley report from September 21 noted that from 2025 to 2028, the U.S. alone faces a 45-gigawatt (GW) data center power gap. Even with gas, nuclear, and other innovative solutions, the shortfall persists.  

 

Unlike new projects that take years to connect to the grid, Bitcoin miners have ready-to-use, grid-connected large-scale sites and power capacity. The report highlights that U.S. Bitcoin miners operate about 6.3 GW of large sites, with another 2.5 GW under construction, making them the “fastest, lowest-risk option” for AI companies to secure power.  

 

Many Bitcoin miners’ stocks are still valued based on mining logic, with extremely low “enterprise value per watt” (EV/Watt) metrics. The report estimates that converting mining sites to data centers could generate equity value of $5 to $8 per watt, far above their current trading levels, signaling a potential value mismatch and alpha opportunity for investors.