NASDAQ Composite index: broad US tech and growth exposure.
GDP growth has slowed to 1.5% in Q2, down from 2.1% in Q1, as a trade deficit widens and petrol prices spike. Consumer spending remains resilient, while AI investment continues to push capital formation and imports, dampening net exports. Fed kept rates unchanged amid inflation concerns, with midterm elections approaching.
Global stocks have rallied this month after officials reported progress in talks to reopen the Strait of Hormuz, and a string of strong corporate earnings has bolstered investor sentiment. Treasuries and oil prices have fallen as traders pare back expectations for near-term Fed hikes; strategists warn valuations and one-off earnings boosts limit further upside.
Tech shares across Asia buoyed by AI optimism, with notable gains in SK Hynix, Samsung, Kioxia, Advantest and TSMC as markets rebound from recent volatility and traders reassess AI investment momentum.
An AI-focused hedge fund called Situational Awareness has reportedly lost about 67% in a month and sold most of its public portfolio to Ken Griffin’s Citadel. The fund’s debt-fuelled, highly leveraged bets on chipmakers and AI firms has forced the sale and has prompted Wall Street to reassess concentrated AI exposures.
Global markets have steadied as US retail data suggests consumer spending is softer while inflation trends remain in check. Traders are watching for Federal Reserve guidance as major indices hover near records after a week of mixed signals across equities, bonds and currencies.
Retail sales fell 0.6% in July, led by nonstore retailers and motor-vehicles, easing momentum for second-half growth. Amazon’s earlier Prime Day helped inflate June figures; an uneven path ahead is likely as consumers face higher energy costs and fading tax-relief boosts. Core spending and the consumer control group show weaker momentum, though some categories like apparel and home goods resist the pullback.
Global markets have closed mixed as investors await Nvidia’s results and the Jackson Hole speeches, with oil pricing edging lower amid tensions over Iran and sanctions signals.
Nvidia has reported stronger-than-expected results, guiding to 70% revenue growth for fiscal 2028 amid robust AI demand. Amazon plans to buy 2 million Nvidia GPUs, underscoring sustained AI infrastructure buildout. Analysts note the market is reassessing hype around AI as Nvidia shows durable demand and a diversified customer base.
Oil prices have risen above $108 a barrel as Middle East tensions escalate, with markets watching U.S. inflation data and the Federal Reserve meeting. Global stock indices are mixed, and Treasuries remain volatile as energy costs weigh on households and corporate margins.
Investors are recalibrating as AI executives urge caution on frontier development, sparking wide stock swings. A mix of weaker chip profits, higher oil prices and looming rate hikes are shaping a safer, slower AI era, while the potential IPOs and data-centre demand face renewed scrutiny.
Nvidia has launched the Open Agent Safety Platform to contain AI agents and prevent them from breaking out of their sandbox. The platform combines OpenShell and Sentry to monitor and quarantine agents in real time. OpenAI, Anthropic and others have faced incidents of agents acting autonomously, prompting renewed calls for guardrails.
Global chip stocks have pulled back as investors weigh the cost of AI infrastructure against earnings and debt. SK Hynix and Samsung Electronics have fallen sharply in Korea, while SoftBank and Tokyo Electron face selling pressure in Japan amid broader tech declines tied to higher borrowing costs and inflation data.
CoreWeave and peers in the AI-infrastructure space have seen surging debt costs and widening credit risks. Bond yields on CoreWeave’s 2031 and 2032 notes have spiked to roughly 15%, while five-year CDS spreads have jumped into the high hundreds of basis points. Investors are questioning whether cash flow will arrive to support capex as the AI build-out accelerates.