1. Asia-Pacific markets close mixed as investors bet on Fed rate cut: Markets Wrap
Asia-Pacific markets closed mixed Thursday as investors bet on a rate cut by the U.S. Federal Reserve next month. Hong Kong’s Hang Seng Index dropped by 0.37% to close at 25,519.32, while mainland China’sCSI 300 index was flat at 4,173.31. Meanwhile, South Korea’s Kospi index closed flat at 3,225.66, while the small-cap Kosdaq ticked up 0.14% to 815.26. Australia’s S&P/ASX 200 benchmark advanced 0.53% to 8,8738.80, after hitting an intra-day high earlier in the session. Japan’s Nikkei 225 benchmark declined by 1.45% to end the day at 42,649.26, while the broader Topix index lost 1.1% to 3,057.95. Over in India, the 50-stock benchmark Nifty 50 was up 0.12%, while the BSE Sensex index ticked up 0.11%.
2. S&P 500 ekes out a third day of gains as traders shake off a hot inflation report
Stocks recovered from lows reached earlier on Thursday, with investors buying the dip once again in spite of a dour wholesale inflation report. The S&P500 settled up 0.03% at 6,468.54, while the Nasdaq Composite and Dow Jones Industrial Average were marginally lower. The tech heavy index ended the day down 0.01% at 21,710.67. The 30-stock Dow lost 11 points, or 0.02%, to close at 44,911.26. The S&P and Nasdaq were both down 0.4% at their lows before bouncing back. The Dow shed more than 200 points at one point.The major averages slid earlier in the day after July’s producer price index reading indicated that a Federal Reserve rate cut is far from guaranteed. Wholesale prices rose 0.9% on the month, much more than the 0.2% economists polled by Dow Jones were expecting.
3. Gold falls as hot U.S. data lifts dollar, yields; cools hope for jumbo Fed cut
Gold prices fell on Thursday as hotter-than-expected U.S. inflation data and a drop in jobless claims lifted the dollar and Treasury yields, trimming the odds of a supersized September rate cut. Spot gold fell 0.5% to $3,337.21 per ounce as of 1:50 p.m. ET. U.S. gold futures for December delivery settled 0.7% lower at $3,383.2. The dollar index (DXY) gained 0.5% from an over two-week low, making bullion less attractive for non-U.S. buyers, while benchmark 10-year yields rose from a one-week low. Stronger U.S. wholesale price data tempered bets on a larger, half-point cut next month. The Labor Department reported the producer price index rose 3.3% year-on-year in July, beating forecasts of 2.5% while weekly jobless claims came in lower than expected, at 224,000 versus 228,000 forecasts.
4. Oil prices climb 2% to 1-week high as Fed rate cut, Trump-Putin talks loom
Oil prices climbed about 2% to a one-week high on Thursday after U.S. President Donald Trump warned of “severe consequences” if his talks with Russian President Vladimir Putin on Ukraine fail and on expectations that a U.S. interest rate cut next month could spur oil demand. Central banks, like the U.S. Federal Reserve, use interest rates to control inflation. Lower interest rates reduce consumer borrowing costs and can boost economic growth and demand for oil. Brent crude futures rose $1.21, or 1.84%, to close at $66.84 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $1.31, or 2.09%, to settle at $63.96.
5. Bitcoin touches record, ether almost makes new high before rolling over
Bitcoin hit a new record late Wednesday as ether climbed even closer to its all-time high. The flagship cryptocurrency rose as high as $124,496, surpassing its July record of 123,193.63, according to Coin Metrics. Ether rose to $4,791.19 overnight, edging closer to its 2021 record of $4,866.01. Both coins took a hit Thursday, however, after July’s wholesale inflation data came in much hotter than expected. Bitcoin was lower by 3% at $117,954.88 while ether fell about the same to $4,550.10. For the week, bitcoin is on pace for a 1% gain, while ether has rallied 12%. Ether flipped bitcoin as the crypto market leader in June, gaining 85% since then thanks to heavy institutional buying, tightening supply and adoption from corporate accumulators – all under the backdrop of a friendlier regulatory environment for the crypto industry.
6. S&P upgrades India rating on economic resilience, sustained fiscal consolidation
Credit rating agency S&P Global upgraded India’s long-term unsolicited sovereign credit ratings to “BBB” from “BBB-” on Thursday, citing economic resilience and sustained fiscal consolidation. The agency had revised the outlook on India’s rating in May last year to positive from stable on robust growth and improved quality of government expenditure. “The upgrade of India reflects its buoyant economic growth, against the backdrop of an enhanced monetary policy environment that anchors inflationary expectations,” the rating agency said in a statement. The Indian rupee strengthened to 87.58 against the dollar from 87.66, while the benchmark 10-year bond yield fell 7 basis points to 6.38% soon after the announcement.
7. India to cut goods and services tax rates by October, PM Modi says
Prime Minister Narendra Modi said on Friday that India will cut Goods and Services Tax (GST) rates as part of “next-generation” reforms to be rolled out by Diwali, aiming to ease the burden on consumers and businesses. In his Independence Day address at the Red Fort, Modi said the changes would provide substantial tax relief on everyday goods and simplify the current multi-slab structure. The government is considering consolidating the existing 5%, 12%, 18% and 28% rates by October, with some common-use items moving to lower brackets. The reforms are intended to stimulate consumption during the festival season and deliver what Modi described as a “double Diwali” for citizens. Shifting goods from higher to lower slabs could reduce government GST revenues, but may boost economic growth. A ministerial panel is reviewing the proposals, which are expected to balance fiscal discipline with measures to support demand.
8. UK economy grows by better-than-expected 0.3% in second quarter
The U.K. economy expanded by a better-than-expected 0.3% in the second quarter, according to preliminary estimates from the U.K.’s Office for National Statistics out on Thursday. Economists had expected the country’s gross domestic product (GDP) to expand by a tepid 0.1% over the period, up from bumper growth of 0.7% in the first quarter. Month-on-month, the economy grew 0.4% in June after a 0.1% contraction in May, failing to shake off the impact of U.S. tariffs and business uncertainty. Across the broader second quarter, growth was led by services, with computer programming, health and vehicle leasing gaining momentum. Construction also increased, while production fell back slightly. Quarterly growth was also boosted by updated source data for April which, while still showing a contraction, was better than initially estimated, the ONS said.
9. Wholesale prices rose 0.9% in July, much more than expected
Wholesale prices rose far more than expected in July, providing a potential sign that inflation is still a threat to the U.S. economy, a Bureau of Labor Statistics report Thursday showed. The producer price index, which measures final demand goods and services prices, jumped 0.9% on the month, compared with the Dow Jones estimate for a 0.2% gain. It was the biggest monthly increase since June 2022. Excluding food and energy prices, core PPI rose 0.9% against the forecast for 0.3%. Excluding food, energy and trade services, the index was up 0.6%, the biggest gain since March 2022. On an annual basis, headline PPI increased 3.3%, the biggest 12-month move since February and well above the Federal Reserve’s 2% inflation target.
10. China’s growth stumbles in July as retail sales, industrial output miss forecasts
China’s economy lost momentum in July, with growth faltering across the board, as weak domestic demand persisted and Beijing intensified efforts to curb excess capacity. Retail sales last month rose 3.7% from a year earlier, data from the National Bureau of Statistics showed Friday, sharply missing analysts’ estimates for a 4.6% growth in a Reuters poll and slowing from June’s 4.8% growth. Industrial output rose 5.7% from a year ago in July, its weakest level since November last year, according to LSEG data, and weaker than analysts’ expectations for a 5.9% rise. Fixed-asset investment expanded 1.6% in the January to July period, undershooting economists’ forecasts for a 2.7% growth and slowing from 2.8% in the first six months. Within that segment, the contraction in property investment worsened, slumping 12% in the first seven months, government data showed.
11. Japan’s economy expands more than expected in second quarter as exports remain resilient
Japan’s economy expanded 0.3% in the second quarter of 2025 from the previous first three months, outpacing forecasts despite tariff headwinds out of the United States. This was compared to the revised 0.1% growth seen in the first quarter, and was higher than the 0.1% increase expected by economists polled by Reuters. The GDP beat was mainly attributed to resilience in exports, which added 0.3 percentage points to GDP growth, compared to the 0.8% contraction in the first quarter of the year. Japan’s trade deficit narrowed from April to June compared to the first quarter, according to data from the country’s trade ministry. On a year-over-year basis, Japan’s GDP expanded 1.2% in the second quarter, falling short of the first quarter’s 1.8% growth. Annualized growth came in at 1%, more than double the 0.4% forecast. The benchmark Nikkei 225 rose 0.59% on the news, while the yen edged up 0.1% to trade at 147.6 against the dollar.
12. Twilio stock surges after inclusion in S&P Midcap 400
Twilio Inc stock surged 4.6% following the announcement that the company will be added to the S&P Midcap 400 index, replacing Amedisys Inc. S&P Dow Jones Indices revealed that the cloud communications platform provider will join the index prior to the opening of trading on Tuesday, August 19. The change comes after S&P 500 and S&P 100 constituent UnitedHealth Group Inc completed its acquisition of Amedisys today. Twilio, which has a market capitalization of approximately $15.5 billion, offers a platform that enables developers to integrate messaging, voice, and video capabilities into applications through APIs.
13. Oracle, Google cloud units strike deal for Oracle to sell Gemini models
Oracle and Alphabet said on Thursday their cloud computing units have struck a deal to offer Google’s Gemini artificial intelligence models through Oracle’s cloud computing services and business applications. The deal, similar to one that Oracle struck with Elon Musk’s xAI in June, will let software developers tap Google’s models to generate text, video, images and audio. Businesses that use Oracle’s various applications for corporate finances, human resources and supply chain planning will also be able to choose to use Google’s models inside those apps. The deal is about distribution. The models themselves will run on Google’s servers, but developers using Oracle’s cloud will be able to access them through a Google product called Vertex AI, which Oracle will integrate into its offerings.
14. NSF and NVIDIA partner to develop open AI models for U.S. science
The U.S. National Science Foundation (NSF) has announced a partnership with NVIDIA to develop artificial intelligence models aimed at advancing scientific discovery and maintaining U.S. leadership in AI-powered research. The collaboration will see NSF contribute $75 million and NVIDIA provide $77 million to support the Open Multimodal AI Infrastructure to Accelerate Science (OMAI) project, led by the Allen Institute for AI (Ai2). This public-private investment aligns with the White House AI Action Plan to accelerate AI-enabled science and ensure U.S. global AI dominance through leading open models. “Bringing AI into scientific research has been a game changer,” said Brian Stone, performing the duties of the NSF director. “These investments are not just about enabling innovation; they are about securing U.S. global leadership in science and technology and tackling challenges once thought impossible.”
15. Lilly signs $1.3 billion deal with Superluminal to discover obesity medicines using AI
Eli Lilly has signed a deal worth $1.3 billion with privately held Superluminal Medicines to discover and develop small-molecule drugs through AI to treat obesity and other cardiometabolic diseases. Lilly currently dominates the obesity treatment market, estimated to be worth $150 billion by the next decade, and is trying to strengthen its foothold in the space through the development of next-generation drugs, acquisitions and partnerships. The deal gives Lilly exclusive rights to develop and commercialize drug candidates discovered using Superluminal’s proprietary AI-driven platform targeting G-protein-coupled receptors (GPCR) – a class of proteins that can influence physiological processes including metabolism, cell growth and immune responses – the drug developer said on Thursday.
16. Peloton plans major product refresh with AI integration for October
Peloton Interactive Inc. is preparing to launch its most significant product upgrades in years as early as October, aiming to boost sales through refreshed hardware and new technology offerings. The New York-based fitness company plans to introduce an updated bike and treadmill alongside new branded accessories, according to a report from Bloomberg, citing sources familiar with the matter. The refresh will also feature an integrated artificial intelligence platform and major software enhancements. In addition to the product updates, Peloton will modify its sales approach by increasing its offerings of refurbished equipment and expanding self-assembly options for customers. These initiatives represent Peloton’s most substantial product overhaul in years as the company works to revitalize its business and attract new customers.
17. Apple to bring blood oxygen feature to some US watches with software update
Apple will bring a blood oxygen measurement feature to some of its watch models via a software update after receiving approval from the U.S. government amid a protracted legal dispute over the technology, it said on Thursday. The move will allow users of Apple Watch Series 9, Series 10, and Apple Watch Ultra 2 in the United States to view their blood oxygen levels on a paired iPhone. It comes after years of legal wrangling with Irvine, California-based Masimo, which has accused Apple of hiring its employees and stealing its pulse oximetry technology after discussing a potential collaboration. Masimo won a ruling at the U.S. International Trade Commission to block imports of watches with the feature, which prompted Apple to remove the feature and set off a lengthy appeals process. Its shares were down 4.5%.
18. Trade Desk shares drop on report of Walmart advertising deal change
The Trade Desk saw its shares drop 6% Thursday after the information reported that Walmart Inc modified its advertising partnership, potentially opening the retail giant’s shopper data to rival platforms. The reported changes mark a shift from a four-year exclusivity clause that funnelled advertisers toward The Trade Desk’s technology. People familiar with the matter told The Information that Walmart removed the requirement for advertisers accessing its shopper data to use The Trade Desk’s tools. The non-exclusive arrangement could diminish The Trade Desk’s competitive edge in a sector where scale and first-party data are critical. The move comes during an especially turbulent period for the Ventura, Calif.-based ad-tech firm. CEO Jeff Green attributed part of the weakness to “ongoing tariff uncertainty” putting pressure on large advertisers.
19. Intel stock climbs 7% on report Trump administration is considering stake in chipmaker
Intel shares rose 7% on Thursday after Bloomberg reported that the Trump administration is in talks with the chipmaker to have the U.S. government take a stake in the struggling company. Intel is the only U.S. company with the capability to manufacture the fastest chips on U.S. shores, although rivals including Taiwan Semiconductor Manufacturing Company and Samsung also have U.S. factories. President Donald Trump has called for more chips and high technology to be manufactured in the U.S. The government’s stake would help fund factories that Intel is currently building in Ohio, according to the report. Earlier this week, Intel CEO Lip-Bu Tan visited Trump in the White House, a meeting that took place after the president had called for Tan’s resignation based on allegations, he has ties to China.
