ADDX GO Market Morning Wrap - 9th Oct

Stock Market

 

Overnight and into this morning, as concerns about an “AI investment bubble” grew, Nvidia CEO Jensen Huang reassured markets, sparking gains among AI giants and pushing the Nasdaq and S&P 500 to new record highs.  

 

At the close, the S&P 500 rose 0.58% to 6,753.72 points; the Nasdaq Composite gained 1.12% to 23,043.38 points; the Dow Jones Industrial Average ended flat at 46,601.78 points.  

 

S&P 500 daily chart, source: TradingView

 

In a Wednesday interview, Huang said that as AI models evolve from answering simple questions to complex reasoning, demand for computing power has surged dramatically.  

 

Nvidia’s CEO stated: “AI is now smart enough that everyone wants to use it. We’re experiencing two exponential growth phases simultaneously... Demand for Blackwell is incredibly high. We’re at the start of a new wave of infrastructure buildout, a new industrial revolution.”  

 

Huang’s comments reignited market enthusiasm for AI themes.  

 

Nvidia rose over 2%, hitting a record closing high. AMD, fresh off a major OpenAI deal, soared 11.37%, with a 45% gain over October’s six trading days. AI server maker Dell, which doubled its four-year financial outlook, jumped over 9%.

 

Super Micro Computer and Micron Technology gained over 6% and 5%, respectively. CoreWeave rose 8% after launching its first publicly available serverless reinforcement learning feature.  

 

Wall Street tech analyst Dan Ives also released a report Wednesday, predicting a very strong Q3 earnings season for large-cap tech stocks.  

 

Ives wrote: “We’re optimistic that investors still haven’t fully grasped the $3 trillion spending wave on AI technology and applications from enterprises and governments over the next three years.”  

Global Hotspots

Fed Minutes Show Sharp Divide on Rate Cut Path  

 

Early Thursday Beijing time, the Fed released its September meeting minutes. The document showed broad agreement on the direction of rate cuts but significant differences on their pace, with some even questioning the September cut itself.  

 

IRS Announces Nearly Half Its Staff Furloughed Without Pay  

 

As the Senate rejected a government funding bill for the sixth time on Wednesday, the IRS announced on its website that, with Congress still deadlocked on a temporary funding bill, a system-wide furlough began October 8, forcing ~34,000 employees to take unpaid leave.  

 

French Presidency Confirms Macron to Appoint New PM Within 48 Hours  

 

On the evening of October 8, the Élysée Palace confirmed President Macron will appoint a new prime minister within 48 hours.  

 

Argentina’s Rates Soar Above 80% as Markets Bet on Peso Devaluation  

 

As Argentina’s government burns through reserves to prop up the struggling peso, investors are increasingly betting that President Javier Milei will allow a peso devaluation after mid-term elections. Sources say the finance ministry intervened for the seventh straight trading day on Wednesday, selling at least $320 million.

 

Over the prior six days, it’s estimated to have sold ~$1.5 billion to support the peso. Short-term rates hit record highs, signaling tighter liquidity. Yields on Lecap bonds due October 31 jumped from 76% to 97%; those due November 28 rose from 74% to nearly 87%.  

Company News

Nvidia Confirms xAI Investment  

 

Nvidia CEO Jensen Huang confirmed an investment in Elon Musk’s startup xAI, saying he’s thrilled about the deal and regrets not investing more.

 

He wants to be part of everything Musk does. Reports indicate xAI raised more than expected in its latest round, reaching $20 billion, with Nvidia’s equity stake at $2 billion.  

 

SoftBank Doubles Down on Embodied Intelligence, Acquires ABB’s Robotics Business  

 

Swiss engineering firm ABB announced Wednesday it signed an agreement to sell its robotics division to Japan’s SoftBank for $5.375 billion, abandoning plans to spin it off as a standalone listed company.  

 

AST SpaceMobile Signs Commercial Deal with Verizon  

 

Satellite internet firm AST SpaceMobile rose 8.63% on Wednesday after signing a commercial agreement with Verizon to provide space-based cellular and broadband services to Verizon users starting in 2026, expanding coverage to rural and underserved U.S. areas.  

Forex & Commodities  

Driven by the ongoing U.S. government shutdown and doubts about dollar credibility, spot gold hit a new high, breaking the $4,000 per ounce milestone. Investors seeking alternative wealth storage also fueled rallies in silver, palladium, and Bitcoin.  

 

However, just before this report, gold saw a sharp drop after President Trump announced that Israel and Hamas reached a “first-phase peace agreement.” Trump also said he might travel to the Middle East this weekend.  

 

Oil prices rose on October 8. NYMEX WTI crude futures for the front-month contract gained $0.82 to $62.55 per barrel (+1.33%); Brent crude futures rose $0.80 to $66.25 per barrel (+1.22%).  

 

Spot gold surged 1.44% to $4,042.14 per ounce. COMEX gold futures for the front-month contract jumped $66.10 (+1.65%) to $4,070.5 per ounce.  

 

At the New York close, the dollar index rose 0.27% to 98.86, with most non-U.S. currencies falling.  

Key Events  

Goldman Sachs Raises End-2026 Gold Price Target to $4,900  

 

Gold breaking $4,000—is this the cycle peak or a new beginning? Markets remain bullish on gold’s upside momentum.  

 

Goldman Sachs cites three “resolute buyers” driving recent gains: rapidly growing Western ETF positions, potential renewed central bank buying, and rising speculative positions.  

 

With emerging market central banks likely to continue diversifying reserves into gold, Goldman Sachs expects annual purchases of 80 tons in 2025 and 70 tons in 2026, raising its December 2026 gold price forecast to $4,900 per ounce (from $4,300).  

Cryptocurrency  

Bitcoin rose 1.26% in 24 hours to $122,952.  

 

Ethereum (ETH-USD) gained 1.55% to $4,515.15.  

 

XRP (XRP-USD) rose 0.03%, BNB (BNB-USD) fell 1.45%, Solana (SOL-USD) rose 4.05%.  

 

Dogecoin (DOGE-USD) gained 2.47%, Cardano (ADA-USD) rose 1.73%.  

Key Events  

BlackRock’s Bitcoin ETF Assets Surpass $100 Billion  

 

On October 8, Bloomberg data showed BlackRock’s Bitcoin ETF, fueled by massive inflows and Bitcoin’s price surge, has neared $100 billion in assets, becoming BlackRock’s most profitable product.

 

In under two years since its launch, the ETF has generated over $240 million in annual revenue, standing out among over 1,000 global funds and highlighting Bitcoin’s immense asset management potential and market demand.