ADDX GO Market Morning Wrap - 15th Oct

Stock Market

On Tuesday Eastern Time, U.S. major stock indices closed mixed as investors digested mostly positive quarterly results from large U.S. banks, Fed Chair Jerome Powell’s remarks, and ongoing trade disputes.  

 

Most large tech stocks fell, with Nvidia down over 4%, Broadcom down over 3%, Tesla and Amazon down over 1%. Semiconductor and crypto reserve stocks led declines, with Intel down over 4%, MicroStrategy and Coinbase down over 4%, ASE Technology down over 3%, and Micron Technology and Arm down over 2%.

 

Early in the session, strong Wall Street bank earnings drove a recovery from a sharply lower open. Fed Chair Powell’s dovish comments further fueled gains, but late in the day, Trump’s remarks on trade tensions caused a slight pullback.  

 

Baird Private Wealth Management investment strategist Ross Mayfield commented: “The market is struggling to gauge where things are headed. If the Trump administration escalates tensions again, markets look overpriced at current valuations, especially with 100% tariffs and other measures back on the table.”  

 

Powell indicated the Fed’s long-running balance sheet reduction plan, or quantitative tightening (QT), may be nearing its end.  

 

TD Securities strategists noted Powell paved the way for ending QT in the coming months: “We expect the Fed to announce a halt to balance sheet reduction at its October meeting.” The balance sheet may stabilize for a while, but year-end pressures could prompt the Fed to resume Treasury purchases in 2026, injecting liquidity.  

 

Powell avoided directly endorsing market expectations for another rate cut at the October 28-29 meeting but didn’t push back either.

 

MacroPolicy Perspectives founder Julia Coronado said: “A Fed rate cut in October is a done deal; nothing changes the view that the labor market faces downside risks.”  

 

Powell acknowledged: “There’s almost no risk-free path now, as inflation seems to be rising slowly… but the labor market is showing significant downside risks. Both labor supply and demand have noticeably weakened.”  

 

Meanwhile, a Bank of America survey showed a record 54% of global fund managers believe AI-related stocks are in a bubble, with October’s survey indicating tech valuations are “overly expensive.”

Global Hotspots

Madagascar Military Announces Takeover of National Power  

 

On October 14, a Madagascar military official announced at the presidential palace in Antananarivo that defense and security forces had formally taken control of the government. Officer Michael Randrianirina, who led a prior barracks mutiny, said the takeover was due to “disregard for the constitution and human rights violations.”

 

The statement suspended the current constitution and dissolved all public institutions except the National Assembly, including the Senate, Constitutional Court, and Independent Electoral Commission. A transitional authority will be formed for up to two years, during which a new constitution referendum and elections will be organized to establish new government institutions.

 

U.S. Military Strikes “Drug Trafficking Vessel” Near Venezuela, 6 Dead  

 

On October 14, President Trump posted on Truth Social that Defense Secretary Hegseth ordered a strike on a vessel linked to a designated terrorist group engaged in drug trafficking off Venezuela’s coast. The attack in international waters killed six onboard, with no U.S. personnel injured.

 

Israel Says Humanitarian Aid Trucks to Gaza Will Halve Starting October 15  

 

On October 14, after a ceasefire took effect, humanitarian aid trucks reached Gaza.

 

Israel’s Channel 12 reported the government stated that, except for specific humanitarian infrastructure, fuel and natural gas will not enter Gaza. Israel informed the UN that starting October 15, daily aid trucks to Gaza will be half the previously agreed amount.

 

Fed Chair Powell: Balance Sheet Reduction May End in Coming Months  

 

Fed Chair Jerome Powell hinted the central bank may end its balance sheet reduction in the coming months. He noted worsening labor market expectations support investor bets for another rate cut this month.

 

In a speech prepared for the National Association for Business Economics in Philadelphia, Powell said: “Our long-stated plan is to stop shrinking the balance sheet when reserves are slightly above what we judge as ample.”

 

He added, “We may approach that level in the coming months, and we’re closely monitoring indicators to inform this decision.”

 

Fed’s Collins Warns of Weakening Labor Market, Sees 25bps Cut as Appropriate  

 

Fed’s Collins called for further rate cuts this year due to growing concerns over a weakening labor market. She said: “With inflation risks somewhat contained but employment facing greater downside risks, further modest policy normalization to support the labor market seems prudent.”

 

Even with more cuts, policy would remain moderately tight, “appropriate to ensure inflation resumes its downward trend as tariff effects filter through.” Collins noted both short- and long-term inflation indicators are relatively stable.

Company News

Oracle Announces Deployment of 50,000 AMD Chips Next Year  

 

On Tuesday, Oracle and AMD announced an expanded partnership.

 

A press release stated Oracle Cloud Infrastructure (OCI) will begin deploying 50,000 AMD GPUs in Q3 2026, with further expansion in 2027 and beyond. The planned OCI supercluster will use AMD’s “Helios” rack design, featuring AMD Instinct MI450 GPUs, CPUs, and NICs. After the news, AMD’s stock rose over 3% at one point, closing up 0.77%.

 

Goldman Sachs Memo: AI to Drive Growth but Cost Jobs  

 

In a Tuesday morning internal memo, Goldman Sachs informed employees that it will start a new round of layoffs by year-end to seize AI opportunities and cut costs across businesses. The “OneGS 3.0” strategy memo, signed by CEO David Solomon, President John Waldron, and CFO Denis Coleman, hailed AI-driven efficiency as “a new path to greater growth.”

 

Implementing AI in client onboarding, lending, regulatory reporting, and vendor management will be a “multi-year effort.” To fully reap AI benefits, Goldman must “accelerate efficiency across operations,” not just upgrade tech platforms.

 

Walmart Partners with OpenAI to Launch Shopping Feature on ChatGPT  

 

Walmart announced a partnership with OpenAI on Tuesday, allowing consumers to browse and buy its products via ChatGPT, marking the retailer’s latest AI move. Walmart’s stock surged over 5%, hitting a record high.

 

Walmart’s EVP of AI, Product, and Design, Daniel Danker, said users can shop Walmart’s catalog—covering apparel, entertainment, packaged foods, and products from Walmart and Sam’s Club—by clicking a “buy” button. Danker noted: “This is an opportunity to offer convenience where consumers are.”

 

CEO Doug McMillon said the e-commerce experience, long defined by a search bar and endless product lists, is changing. The AI feature will be “multimedia, personalized, and contextual,” moving toward a “more enjoyable, convenient future.”

Forex & Commodities  

WTI crude futures fell 1.33% to $58.70/barrel. Brent crude futures dropped 1.47% to $62.39/barrel.  

 

COMEX gold futures rose 0.64% to $4,159.6/oz; COMEX silver futures dipped 0.17% to $50.345/oz.  

 

At the New York close, the dollar index fell 0.21% to 99.05, with most non-U.S. currencies declining.

Key Events

Gold Hits New High! What’s the Underlying Logic?  

 

On October 14, international gold prices continued their uptrend, holding above $4,100/oz and steadily approaching $4,200/oz.  

 

Researchers outlined three drivers of gold’s rise:  

1. Massive U.S. money issuance has fueled severe inflation, reducing the dollar’s purchasing power.  
2. The U.S. government’s abuse of dollar hegemony and sanctions on other nations has eroded its “safe asset” status.  
3. Trump’s pressure on the Fed has significantly undermined its independence, shaking the dollar’s foundation as a global currency.  

“Long-term, gold can’t replace modern currency, but during major shifts in the global financial system, it becomes a critical safe asset in the transition. This is the core logic behind global central banks and investors buying gold.”

Cryptocurrency  

Bitcoin fell 2.16% in 24 hours to $112,948.  

 

Ethereum (ETH-USD) dropped 3.58% to $4,109.80.  

 

XRP (XRP-USD) fell 4.62%, BNB (BNB-USD) dropped 8.05%, and Solana (SOL-USD) declined 3.79%.  

 

Dogecoin (DOGE-USD) fell 5.33%, and Cardano (ADA-USD) dropped 5.13%.

Key Events

Musk: Bitcoin Relies on Unforgeable Energy, Unlike Fiat’s Over-Issuance  

 

Financial outlet Zerohedge said AI has become a global arms race, with governments ultimately funding the capex. It noted surging gold, silver, and Bitcoin prices stem from countries printing money to support the AI race, causing currency devaluation.

 

Elon Musk retweeted, commenting: “This is why Bitcoin is energy-based. You can issue fake fiat money—every government in history has done it—but you can’t fake energy.”