Daily News 27th Aug 26
Daily News
Nvidia Tops Estimates as AI Demand Surges; Wall Street Steady on Sticky Inflation; Gold Nears $4,650; Crude Slips Below $82 on Hormuz Progress
27 August 2026
Today in Brief
Asia-Pacific markets traded mixed Thursday, with Japan's Nikkei 225 adding 0.32% and the Topix up 0.27%, South Korea's Kospi rising 1.83% and the Kosdaq gaining 1.15%, while Australia's S&P/ASX 200 fell 0.93%. On Wall Street, the S&P 500 closed little changed at 7,675.70 and the Nasdaq Composite slipped 0.08% to 26,130.20, while the Dow lost 113.52 points to 53,463.88, as investors weighed a hotter-than-expected PCE inflation reading. Gold climbed toward $4,650 an ounce on Thursday, recovering most of the prior session's losses ahead of Fed Chair Kevin Warsh's Jackson Hole speech, while crude oil slipped below $82 per barrel for a fourth straight session as Iran and Oman reached an agreement over the Strait of Hormuz.
In other news: China's industrial profits growth cooled to its weakest pace this year in July; Japan's Financial Services Agency registered Smartround Securities to enable secondary trading of unlisted startup shares; the Bank of Korea delivered a second straight rate hike to 3% as core inflation stayed elevated; an oil tanker was struck by an unidentified projectile in the Strait of Hormuz; Meta settled a child-safety lawsuit with California and other state attorneys general; Nvidia shares jumped nearly 6% after beating quarterly estimates and raising guidance; Salesforce lifted its annual forecasts and expanded its "Claudeforce" AI partnership with Anthropic; and Baidu announced it will convert its Hong Kong listing to primary status from September 1.
In Asia, Japan's Nikkei 225 added 0.32% while the Topix rose 0.27%
In Asia, Japan's Nikkei 225 added 0.32% while the Topix rose 0.27%. The Kospi rose 1.83%, and the small-cap Kosdaq gained 1.15%. Australia's benchmark S&P/ASX 200 was 0.93% lower. Nvidia shares added more than 4% after it beat analyst expectations and forecast strong revenue growth ahead. The chipmaker's fiscal second-quarter revenue more than doubled and surpassed forecasts by its largest amount in two years. Nvidia stands to break its recent pattern of seeing stock declines despite posting stronger-than-anticipated reports. Still, shares of Nvidia dropped more than 1% in Wednesday's session as investors awaited the release, marking the megacap technology stock's eighth down day of the last nine.
S&P 500 closes little changed as investors weighed sticky inflation
The S&P 500 was relatively unchanged on Wednesday after the latest personal consumption expenditures price index reading revealed that inflation remains elevated. The broad market index closed around the flatline at 7,675.70, while the Nasdaq Composite declined 0.08% to settle at 26,130.20. The Dow Jones Industrial Average lost 113.52 points, or 0.21%, to finish at 53,463.88. Meta reached a settlement with state attorneys general over a lawsuit alleging that its social media apps harmed young users. Shares were 1% higher on the day. The PCE price index — a monthly report detailing changes in prices of goods and services and a closely watched inflation metric by the Federal Reserve — rose slightly more than expected in July. However, core PCE, which excludes food and energy prices, came in as anticipated.
Gold climbed toward $4,650 an ounce on Thursday, recovering most of the previous session's losses
Gold climbed toward $4,650 an ounce on Thursday, recovering most of the previous session's losses as investors continued to weigh the outlook for Federal Reserve monetary policy ahead of a key meeting next month. Data released Wednesday showed US PCE prices rose more than expected in July and remained well above the Fed's target, supporting a bullish outlook on interest rates. Investors now turn to Fed Chair Kevin Warsh's speech at the annual Jackson Hole symposium on Friday, although he is not expected to offer clear guidance on the central bank's September policy decision.
Crude oil slipped below $82 per barrel on Thursday, extending its decline to a fourth straight session
Crude oil slipped below $82 per barrel on Thursday, extending its decline to a fourth straight session amid signs of diplomatic progress in the Middle East. Iran and Oman reached an agreement over each country's share of the Strait of Hormuz's waters and related revenues, although Tehran cautioned that reopening the crucial waterway would require more than an agreement with Oman. Meanwhile, President Donald Trump said 10 million barrels of oil had passed through Hormuz on Tuesday, while reiterating claims that mines in the waterway had been cleared. Oil prices have also come under pressure this week after fresh US economic sanctions on Iran proved less aggressive than markets had feared, with the White House so far sparing Iran's trading partners from tougher measures.
China industrial profits growth cools to slowest in seven months as economic slowdown deepens
China's industrial profits growth in July slowed to its weakest pace this year, expanding 11.2% from a year earlier, as soft demand and a broader slowdown in the economy weighed on manufacturers. For the first seven months of this year, profits climbed 17.6% from a year earlier, according to National Bureau of Statistics data released Thursday, losing momentum following the 18.7% growth in the first half-year. Industrial corporate profitability, however, has seen a notable turnaround, swinging from barely positive growth last year to double-digit gains this year. That recovery was largely helped by a global artificial intelligence boom that fuelled demand for computing and electronics equipment manufacturing.
Japanese startups, IPOs set for boost with platform to trade unlisted companies
Japan's startup and initial-public offering scenes may get a boost from a new trading platform that will help unlisted companies raise capital. Investors have had few options to cash out besides IPOs or acquisitions by third parties. But earlier this month, the Financial Services Agency announced that it has registered Smartround Securities as a brokerage for secondary market trading of unlisted shares, as part of efforts to broaden private markets and attract more investment in domestic startups. Giving investors a more efficient way to buy and sell shares should make it easier for capital to reach growing businesses, said Sylvain Thieullent, chief executive officer of Horizon Trading Solutions. "Companies come to the public market better prepared, ultimately improving the quality of Japan's IPO pipeline," he said.
Bank of Korea delivers back-to-back rate hikes as core inflation stays elevated
South Korea's central bank on Thursday raised rates for a second straight time in its bid to cool rising prices, after core inflation reading hit the highest-level last month since December 2023. The Bank of Korea hiked rates by 25 basis points to 3%, it's highest since January 2025 and in line with expectations. The BOK said in its statement that while South Korea's economy continued to grow at a stronger-than expected pace, inflation is likely to remain above the target level for a "considerable time." Core inflation in Asia's fourth largest economy climbed to 2.6% in July, while the headline inflation rate in July cooled slightly to 2.8%, after rising for four straight months since the Iran war started in February.
Tanker attack tests Trump's claim that Hormuz is a 'functioning strait'
An oil tanker was struck by an unidentified projectile in the Strait of Hormuz, the UK Maritime Trade Operations agency said in a post Thursday, the latest in a string of sporadic attacks that have kept ships away from the vital energy corridor. The incident was reported Tuesday, off the Omani coast, the UKMTO said, which added that the resulting fire had been extinguished, all crew members were reported safe, and an investigation was underway. Traffic through Hormuz has trended lower this week and remains far below pre-war levels, even as the U.S. has sought to help escort vessels along the Omani side of the strait. Last week, an attack on a cargo ship transiting the waterway killed a crew member. Only five ships made confirmed crossings Tuesday, down from seven the day before and a collapse from more than 130 vessels a day before the war, according to Kpler.
Meta settles social media addiction case with California, other states for $16.7 billion
Meta and a coalition of state attorneys general have settled a major federal case cantering on allegations that the social media giant misrepresented the extent of child mental health harms caused by apps like Facebook and Instagram. The settlement was revealed in a court filing released Wednesday that details several requirements Meta must make to its apps as part of a proposed "consent judgement." The court officially approved the settlement later in the afternoon, according to a legal filing signed by Northern District of California Judge Yvonne Gonzalez Rogers. Those changes include daily usage limits and "nighttime blocks" for teenagers who use the company's apps, "enhanced age assurance measures" that would prevent children from using them, and the creation of additional tools for parents and guardians.
Nvidia stock jumps after early dip following results; AI fever is unabated
Nvidia investors got a roller coaster ride after the market closed on Wednesday, with its shares jumping nearly 6 % after an early dip following the company's quarterly results, highlighting Wall Street's elevated expectations for its favourite AI chip designer. Nvidia handily beat the consensus estimates for its second quarter and raised its third-quarter guidance. Second-quarter data center revenue rose 117% from a year ago to $89 billion, and the company said third-quarter revenue across the Santa Clara, California, firm should hit $108 billion, give or take. Fans of the company saw more good news for the AI trade. But at first it was not quite good enough after a long run by Nvidia and the other megacap tech stocks. Shares opened the after-hours session lower and were little changed in late trading in the 40 minutes following the report.
Salesforce raises annual forecasts, expands AI partnership with Anthropic
Salesforce lifted its annual revenue and profit forecasts on Wednesday and rolled out a new plug-in combining its capabilities with Anthropic's Claude AI models, sending its shares up 14% in extended trading. Dubbed "Claudeforce", the initiative marks an expansion in the companies' partnership, first struck in June, and comes as Salesforce grapples with deeply negative sentiment on software stocks as investors worry about the threat from AI disruption. Salesforce, which is also an investor in Anthropic, recorded a $2.53-per-share gain on an adjusted basis from its strategic investments in the second quarter, which partly helped the company's adjusted earnings more than double to $5.90 per share. The EPS was also boosted by a reduction in outstanding shares due to share buybacks, and strong operational performance.
Baidu to convert HK listing status to primary, shares surge
Baidu Inc said on Thursday it will convert its secondary listing status on the Hong Kong Stock Exchange to primary from September 1. The company will then hold a dual listing in the HKEX and the Nasdaq. Prior to the change, its Nasdaq listing was regarded as its primary listing. Baidu's Hong Kong shares surged over 6% following its announcement. The shift to a primary listing in Hong Kong makes Baidu eligible for the Stock Connect program, opening it up to capital flows from investors in Mainland China. While the company did not provide any details on the Stock Connect program, inclusion usually takes place in the matter of months after meeting certain market capital and liquidity requirements. Baidu is among the largest Chinese internet firms, and is widely expected to be included in the program.
