Category: US/Midday Session Brief

Markets Stumble: S&P 500 Down 4 Days, Nasdaq Hit by Tech Sell-Off

Posted on by Olumide Adesina

The Nasdaq Composite and S&P 500 declined amid the tech blood bath.. Mixed retail earnings and the latest Federal Reserve meeting minutes also influenced investor sentiment. The tech-heavy Nasdaq dropped 0.67 percent, closing at 21,172.86, while the broader market index fell 0.24 percent to end at 6,395.78. On Wednesday, the S&P 500 experienced its fourth consecutive loss, and the Nasdaq had its second straight decline.

The Dow Jones Industrial Average, however, rose 16.04 points, or 0.04 percent, ending at 44,938.31. Several well-known semiconductor and tech companies continued to generate profits for investors, fueling concerns over their high valuations and the long-term prospects of the artificial intelligence market.

The session concluded with Nvidia slightly down, while Broadcom and Advanced Micro Devices each lost about 1 percent. Intel’s stock dropped roughly 7 percent, and Palantir declined about 1 percent. Major tech giants—Apple, Amazon, Alphabet, and Meta dipped in the mid-week session.

Central bankers expressed concerns about inflation and the labor market, but mostly agreed that it was too early to lower interest rates, according to minutes from the Federal Reserve’s July meeting released on Wednesday. For the first time since 1993, two voting Fed officials dissented, with Fed Governors Christopher Waller and Michelle Bowman voicing disagreement. At that time, policymakers maintained steady interest rates.

“In general, participants identified risks to both sides of the Committee’s dual mandate, with a focus on upside risk to inflation and downside risk to employment,” the minutes stated.

Although “the majority of participants judged the upside risk to inflation as the greater of these two risks,” a few believed that the employment risk was more significant. Investors will be watching for clues about the future direction of interest rates in the upcoming minutes and Fed Chair Jerome Powell’s remarks on Friday.

Gold Muted as Jackson Hole in Spotlight

Posted on by Olumide Adesina

Gold remained stable on Thursday as the metal awaited clues regarding the Federal Reserve’s policy outlook ahead of the annual economic symposium at Jackson Hole in Wyoming.

No tariffs for Gold bullion bars

The precious metal traded at $3,380 per ounce at the spot market. The bullion asset eased following Tuesday’s sharp drop as demand for immediate safe havens decreased due to improving risk sentiment.

There are now increased expectations for a diplomatic solution to the Russia-Ukraine conflict after US President Donald Trump, Ukrainian President Volodymyr Zelenskyy, and leading European leaders met in Washington.

Trump suggested that a trilateral summit between him, Russian President Vladimir Putin, and Zelenskyy could be in the works, and the market is now focused on that possibility. Moscow has not yet committed to these discussions. According to Russian Foreign Minister Sergey Lavrov, any potential meeting must be “prepared gradually,” starting with experts and progressing through official diplomatic channels.

Although no specific timeframe has been established, the renewed involvement has improved the overall perception of risk. Still, with some safe-haven positioning remaining, ongoing geopolitical uncertainty continues to give Gold a slight buffer

Traders are also awaiting the release of the minutes from the FOMC’s July meeting, which could shed light on internal policy debates. Christopher Waller and Michelle Bowman, who preferred a 25-basis point (bps) rate cut over keeping rates steady, made the meeting notable as the first since 1993 with two dissenting votes from the Board of Governors. The minutes may reveal whether internal divisions at the Fed and a shift toward easing are gaining momentum.

Nvidia (NVDA) Slides 3% on Profit-Taking After Strong Run

Posted on by Olumide Adesina

Nvidia (NVDA) dropped by 3 percent as investors took some profits off the table while awaiting insights on future monetary policy from the Federal Reserve’s Jackson Hole symposium later this week. A significant sell-off in megacap tech and semiconductor stocks was one of the main reasons for the market’s decline.

Notable declines in Nvidia, AMD, and Broadcom contributed to the drop in the VanEck Semiconductor ETF. Other major tech firms, including Netflix, Tesla, and Meta Platforms, also faced pressure.

The “AI trade,” which includes these large technology and semiconductor companies, has accounted for a significant portion of recent market gains; this may indicate that some investors are securing profits before the Fed makes a definitive statement.

Nvidia’s shares are highly volatile, having experienced 21 price movements greater than 5 percent over the past year. Today’s developments suggest that while the market views this news as significant, it is not drastically changing its perception of the company.

Recently, when the US jobs report for July was much weaker than expected and new import tariffs were announced, Nvidia’s stock fell by 3 points, or 6 percent, raising concerns about a potential economic slowdown.

This was the last major movement discussed in our article. The labor market’s outlook worsened due to substantial downward revisions to the previous two months’ report, revealing that the US economy added only 73,000 jobs—far below estimates. As a result, the demand for chips used in various products is likely to be directly affected by the heightened fears of a recession.

UBS Predicts Gold at $3,600/oz by Q1 2026

Posted on by Olumide Adesina

UBS raised its target price for gold by $100 to $3,600 per ounce by the end of March 2026. This increase is supported by trends in de-dollarization, strong investment demand—especially from exchange-traded funds (ETFs) and central banks—and ongoing macroeconomic risks in the United States, all of which are expected to drive gold prices higher.

Additionally, the Swiss Bank introduced a new target of $3,600 per ounce for end-September 2026 and raised its end-June 2026 forecast by $200 to $3,700 per ounce. The bank predicts that persistent inflation in the U.S., below-trend economic growth, a more accommodative monetary policy from the Federal Reserve, and continued weakness of the dollar will contribute to higher gold prices.

UBS points out that de-dollarization trends and the rise in central bank purchasing are influenced by geopolitical factors, concerns about fiscal sustainability, uncertainties surrounding the Fed’s independence, and risks associated with the U.S. economy. In a statement, UBS said, “We believe these factors will push gold prices even higher.” 

Furthermore, UBS has increased its full-year forecast for ETF gold demand from 450 metric tons to nearly 600 metric tons, as reported by the World Gold Council.

 

TSLA: Tesla Fights UK Sales Crash with Deep Leasing Discounts

Posted on by Olumide Adesina

Tesla (: TSLA), Elon Musk’s electric vehicle manufacturer, is providing discounts of up to 40 percent to UK car leasing companies to boost declining sales. The company is facing challenges as its global market share continues to decline rapidly.

According to industry sources cited by The Times, the shortage of storage space for Tesla vehicles is another reason for the discounts, which are implemented through lower monthly payment plans for customers.

According to the report, leasing a Tesla Model 3, the company’s most popular vehicle, for 36 months is now available for as little as £252 plus VAT. This is a significant decrease from a year ago, when monthly payment plans could have ranged from £600 to £700. Tesla in the UK is currently offering customers zero-interest financing options, which may cost the EV manufacturer approximately £6,000 over three years for a vehicle priced at £40,000.

The company has not yet reduced the headline prices of its electric cars. Tesla’s aggressive pricing strategies and discounts emerge as it encounters ongoing competition in the European auto market

Warren Buffett Buys UnitedHealth, Sells Apple, BofA, T-Mobile

Posted on by Olumide Adesina

Warren Buffett purchased 5 million shares of UnitedHealth Group (UNH). The CEO of the Omaha, Nebraska-based conglomerate purchased 5 million shares of UnitedHealth, giving Berkshire a $1.16 billion stake in the company.. Additionally, Berkshire sold the $1 billion it held in T-Mobile US Inc., exiting the telecom provider during that period.

 

Buffett invested in UnitedHealth at a time when the healthcare organization was facing several crises. Brian Thompson, a UnitedHealth executive, was shot and killed in Manhattan last year. Unexpected increases in medical costs have also impacted UnitedHealth and other US health insurers. For the first time in over ten years, it released earnings in April that fell short of Wall Street expectations, causing the stock price to plunge.

The company announced plans to replace both its chief financial officer and its CEO.

The insurer’s shares experienced a 9.6% increase in post-market trading following Berkshire’s acquisition of a stake in UnitedHealth. Additionally, Buffett sold 20 million shares of Apple Inc. after reducing his stake in the iPhone manufacturer the previous year.

Berkshire’s holdings in Apple remain its largest equity stake by market value, despite experiencing a decline of approximately $9.2 billion in the three months ending June 30

Furthermore, Berkshire intensified efforts to reduce its stake in Bank of America Corp., having sold 26 million shares by the end of June, lowering its ownership to approximately 8%. Without providing any justification, Buffett began reducing his bank investment last year. A portion of the massive consumer foods company Kraft Heinz Co. is among its equity investments, which has caused issues for Buffett’s business. The conglomerate maintained its holdings in the second quarter despite incurring an impairment charge of $3.08 billion on its investment earlier this year.

Brent Oil Outlook Unchanged by Goldman Sachs, Demand Concerns Loom

Posted on by Olumide Adesina

Goldman Sachs reaffirmed its forecast that the price of oil would average $64 per barrel in the fourth quarter of 2025 and $56 in 2026. However, it foresees a broader range of risks to its baseline estimates due to recent events.

“Increasing pressure on Russia and Iran-sanctioned oil supply presents an upside risk to our price forecast given the faster-than-expected normalization in spare capacity,” the investment bank stated in a note dated August 3.

Nonetheless, Goldman identified a downside risk to its 2025–2026 average annual demand growth forecast of 800,000 barrels per day because of weak US economic data, the threat of additional secondary tariffs, and the rise in US tariff rates. According to the note, the bank’s economists believe that the weaker data “suggests that the US economy is now growing at a below-potential pace,” which raises the likelihood of a recession in the upcoming year.

The Organization of the Petroleum Exporting Countries (OPEC+) and its allies, including Russia, decided to increase oil production by 547,000 barrels per day for September.

This is the latest in a series of rapid output increases aimed at regaining market share. “We anticipate that the pace of increases in OECD commercial stocks will accelerate and that seasonal demand tailwinds will diminish after September, so even though OPEC+ policy remains flexible,” Goldman stated..

Oil Gains on Trade Hopes, Tempered by Possible Venezuelan Output Increase

Posted on by Olumide Adesina

Oil prices rose on Friday as news of potential additional oil supply from Venezuela was overshadowed by optimism about trade talks, which boosted the outlook for the global economy and oil demand.

Brent crude futures hit a one-week high at $69 a barrel, gaining 29 cents, or 0.42%. US West Texas Intermediate (WTI) crude futures increased by 29 cents, or 0.44%, to $66.3. Expectations of new trade agreements between the US and other nations supported oil and stock markets, especially ahead of August 1, when the US plans to impose more tariffs on products from various countries.

Two European diplomats mentioned that the EU is working toward an agreement that would include a 15 percent US tariff on EU imports following the announcement of a trade deal between the US and Japan on Wednesday, with possible exemptions.

The US is preparing to allow its partners in Venezuela’s state-run PDVSA, starting with the US oil giant Chevron, to engage in limited business in the sanctioned country.

This move could ease the tightness in the heavier crude market, which would benefit US refiners.

Venezuelan oil exports might likely increase by over 200,000 barrels per day. WTI has fallen by 1.4 percent, while Brent has risen by 0.4 percent.

Both contracts also gained about 1% yesterday amid news of Russian gasoline export cuts, boosted by the US market.

US crude inventories decreased by 3.2 million barrels to 419 million barrels last week, according to data from the US Energy Information Administration released Wednesday, significantly more than the 1.6 million barrel draw predicted by analysts in a Reuters poll.

Gold dissolves from a 1-month high

Posted on by Olumide Adesina

The bullion asset experienced a slight decline in London trade on Tuesday, reversing a recent high of over a month. Gold futures dropped $3,400 per ounce, while XAU/USD traded at $3,388 per ounce.

AngloGold Posts Blowout Q1 as Production and Gold Price Jump
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Reports indicated that the European Union was preparing to impose retaliatory tariffs against the United States, which contributed to an increase in gold prices. Concerns over proposed tariffs from President Donald Trump, specifically, that Washington was aiming for at least 15% tariffs on the EU, also played a significant role in boosting demand for safe havens. This heightened demand came ahead of a meeting next week amid uncertainty surrounding the Federal Reserve and US interest rates.

It is generally expected that the Fed will keep rates unchanged, while Trump has been increasingly urging the Fed to lower interest rates immediately. Markets remained on edge as the August 1 deadline for US tariffs approached. Diminished expectations for a trade agreement between the US and the EU affected risk sentiment, leading traders to be more cautious about a potential trade war between the two.

The EU was noted to be preparing its retaliatory measures response to the higher-than-expected US tariffs. Concerns that Trump’s proposed tariffs would be fully implemented grew after his administration announced a limited number of trade agreements. Additionally, the Trump administration recently suggested that extending the tariffs deadline past August 1 was unlikely. Trump’s two-week streak of letters announcing tariffs ranging from 20% to 50% on key US trading partners has alarmed the market and prompted threats of retaliation from some nations.

The dollar, which had risen for two consecutive weeks, began to decline as gold prices rallied yesterday.

The dollar remained stable despite a growing belief that the Fed will maintain steady interest rates next week. However, amid increasing rumors that Trump might attempt to fire Fed Chair Jerome Powell, markets continued to express concerns about the  Federal Reserve’s independence

The president and his supporters are frustrated with Powell’s reluctance to lower interest rates. Since Powell’s speech occurred during the Fed’s pre-meeting media blackout period, it remains unclear whether he will comment on monetary policy later on Tuesday.

U.S. Dollar Holds Firm amid Tariff Fears and Fed Independence

Posted on by Olumide Adesina

The US Dollar Index (DXY), which compares the greenback’s strength against six major currencies, held steady after dropping more than 0.5 percent on Monday.

 

Market prudence increased, as concerns about the Federal Reserve’s (Fed) independence and the uncertainty surrounding upcoming tariffs grew. US Commerce Secretary Howard Lutnick told reporters, “That’s a hard deadline so that the new tariff rates will come in on August 1.”.

Nations will begin to pay the tariffs, but nothing will stop them from communicating with us after that date. US Treasury Secretary Scott Bessent stated that the Fed’s “mandate creep” into non-policy areas constitutes a threat to its independence on monetary policy. Bessent called for a thorough examination of those operations by the central bank.

Treasury Secretary Bessent demanded that the Federal Reserve be reevaluated as an organization. Speculation about a potential dismissal has increased in response to President Trump’s renewed criticism of Chair Powell for not lowering interest rates.

US President Donald Trump is expected to fire Fed Chairman Jerome Powell shortly, according to a White House official. In a Truth Social post on Sunday, Trump refuted it, describing it as “typically untruthful.”

Republican Congresswoman Anna Paulina Luna has formally accused Fed Chair Powell of perjury in connection with conversations regarding the Federal Reserve’s long-planned renovations to its Washington headquarters.