ADDX GO Market Morning Wrap - 25th Sep

Stock Market

On Wednesday Eastern Time, the three major U.S. indices closed lower, with AI leaders Nvidia and Oracle facing pressure for the second consecutive day.  

 

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

 

At the close, the Dow Jones Industrial Average fell 0.37% to 46,121.28 points; the S&P 500 dropped 0.28% to 6,637.97 points; and the Nasdaq declined 0.33% to 22,497.86 points.  

 

Nvidia and Oracle fell nearly 1% and 2%, respectively, extending Tuesday’s losses. Concerns about a potential “circular financing” model in the AI sector fueled investor skepticism.  

 

The AI investment frenzy drove dozens of record highs for U.S. stocks this year, but a pullback has emerged after the rally. Market participants suggest some investors are taking profits amid high valuations. Fed Chair Jerome Powell also warned Tuesday that market valuations are elevated.  

 

Jay Hatfield, CEO of Infrastructure Capital Advisors, said, “The tech sector might be a bit overdone. There’s no strong bullish case. I’m not saying ‘nobody will use AI, the world’s doomed,’ but the issue is valuation.” He noted seasonal weakness could persist for a few days.

 

Some analysts worry that AI’s high investment costs may continue to weigh on markets. Julie Biel, chief market strategist at Kayne Anderson Rudnick, said, “Most tech becomes more cost-effective over time, but that’s not happening with AI.”  

 

Intel surged over 6% amid reports it’s seeking investment from Apple.  

 

Micron Technology fell nearly 3%, as its earnings and guidance disappointed investors, signaling doubts about AI-related trades.  

 

Alibaba soared over 8%, with other U.S.-listed Chinese tech stocks also rising, boosted by Alibaba’s pledge to ramp up AI infrastructure investment.  

 

Lithium Americas skyrocketed 95% after reports that the U.S. government is seeking a 10% stake.  

Global Hotspots

U.S. Cuts EU Auto Tariffs to 15%, Effective Retroactively from August 1  

 

On Wednesday, September 24, the U.S. announced a reduction of EU auto import tariffs to 15%, effective retroactively from August 1, to solidify a summer trade agreement. The Commerce Department and USTR detailed adjustments, including exemptions for aircraft, generics, metals, and minerals starting September 1.

 

The product list may see further tweaks. Previously, EU autos faced an additional 25% sector tariff on top of the 15% base.  

 

European Parliament Speaker Expects Approval of U.S. Trade Deal  

 

Roberta Metsola said she expects the European Parliament to approve a deal setting a 15% tariff on nearly all EU exports to the U.S.  

 

German Business Confidence Falls for First Time This Year  

 

The Munich-based Ifo Institute reported Germany’s September business confidence index fell to 87.7 from 88.9, the first decline since January.  

 

Russian PM: Economy to Grow 1.3% in 2026  

 

On September 24, Russian PM Mikhail Mishustin said GDP is expected to grow 1.3% in 2026, with ~7% growth over three years. The Economy Ministry lowered the 2025 inflation forecast to 6.8%, expecting 4% by end-2026.  

 

U.S. Secretary of State Meets Russian FM on Bilateral Ties, Ukraine  

 

The U.S. State Department said Secretary Marco Rubio met Russian FM Sergey Lavrov on September 24. Rubio stressed Russia must take meaningful steps to resolve the Ukraine conflict.

 

Russia’s Foreign Ministry said Lavrov, in New York, affirmed Russia’s commitment to the Putin-Trump Alaska summit roadmap for Ukraine but rejected Ukraine and some European nations’ plans to prolong the conflict. Both expressed a desire for a peaceful resolution and discussed restoring social-political ties.  

 

Cyberattack Hits Multiple European Airports, UK Police Arrest Suspect  

 

On September 24, UK police arrested a man in his 40s in West Sussex for a cyberattack on Collins Aerospace, disrupting check-in systems at London Heathrow and other European airports, causing widespread flight delays and cancellations. Investigations continue.  

Company News

Intel Reportedly Seeks Apple Investment to Reverse Slump  

 

Sources say Intel has approached Apple for investment to aid the struggling chipmaker.

 

Discussions, still early, include closer collaboration, but no deal is certain. CEO Lip-Bu Tan is seeking partners for Intel’s revival. Intel’s stock jumped over 6% Wednesday.  

 

Oracle Issues $18B Bond, Second-Largest in 2025  

 

Oracle launched an $18 billion investment-grade bond sale Wednesday, the second-largest in 2025, with demand nearing $88 billion. The issuance includes a rare 40-year bond priced 1.37% above Treasuries, lower than the initial 1.65% guidance.  

 

OpenAI Explores Leasing Nvidia Chips to Save 10-15% Costs  

 

OpenAI is discussing leasing Nvidia AI chips to reduce costs in their large-scale data center collaboration, potentially saving 10-15% versus buying outright. Leasing avoids fundraising for chip purchases and speeds up access.  

 

Amazon’s Zoox Seeks Broad Approval for Driverless Cars  

 

Amazon’s Zoox applied for U.S. regulatory exemptions to deploy up to 2,500 fully autonomous vehicles without traditional controls, per an NHTSA filing. If approved, Zoox could operate commercially, expanding beyond its prior research-only approval.  

Forex & Commodities  

WTI crude futures rose 2.49% to $64.99/barrel. Brent crude futures gained 2.48% to $69.31/barrel.  

 

COMEX gold futures fell 1.24% to $3,768.5/oz; COMEX silver futures dropped 1.11% to $44.115/oz.  

 

At the New York close, the dollar index rose 0.65% to 97.86, with most non-U.S. currencies falling.  

Key Events

Global Investors Pile into Gold ETFs  

 

World Gold Council data shows global gold ETF holdings grew to 3,779.4 tons by September 19, the fastest in three years and the highest since August 2022.

 

Q1 and Q2 net inflows were 226.6 and 170.5 tons, far above last year, fueling gold’s rally. The U.S.’s SPDR Gold Shares led with 122.1 tons added YTD, holding 994.4 tons.  

Cryptocurrency  

Bitcoin rose 1.17% in 24 hours to $113,343.  

 

Ethereum (ETH-USD) fell 0.26% to $4,154.43.  

 

XRP (XRP-USD) rose 3.53%, BNB (BNB-USD) gained 0.18%, Solana (SOL-USD) fell 0.90%.  

 

Dogecoin (DOGE-USD) rose 1.63%, Cardano (ADA-USD) gained 0.69%.  

Key Events

Bitcoin to Hit $3.4M? Arthur Hayes Thinks It’s Coming  

 

Former BitMEX CEO and Maelstrom Fund manager Arthur Hayes predicts Bitcoin could reach $3.4 million by 2028, based on assumptions of credit growth, debt purchases, and policy shifts.

 

He projects $15.3 trillion in combined Fed and bank credit growth, with the Fed buying 50% of new Treasuries and banks adding $7.57 trillion in credit.