1. Japanese markets close at record high as second-quarter GDP beats forecasts: Markets Wrap
Asia-Pacific markets rose as investors assessed Japan’s GDP and the flurry of Chinese economic data. Japan’s Nikkei 225 rose to a record high close after the country’s second-quarter GDP grew 0.3%, outpacing forecasts despite tariff headwinds. Australia’s S&P/ASX 200 was set to start the day marginally lower with futures tied to the benchmark at 8,838, compared with the index’s last close of 8.873.8. 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.
2. S&P 500 closes lower Friday, but logs its second weekly gain
The S&P 500 slipped on Friday after hitting a record high, as investors took some gains off the table after a strong week. The broad market index settled down 0.29% at 6,449.80. The Nasdaq Composite shed 0.40% to end the day at 21,622.98. The Dow Jones Industrial Average outperformed, rising 34.86 points, or 0.08%, to close at 44,946.12, thanks to a 12% jump in UnitedHealth. However, it was well off its all-time high reached earlier in the day. The major averages remained on solid footing for the week, however. The Dow outperformed, up 1.74%. The S&P 500 and Nasdaq respectively gained 0.94% and 0.81% week to date, thanks to new consumer inflation data that raised hopes for a Federal Reserve rate cut next month.
3. Gold heads for weekly loss, spotlight on Trump-Putin talks
Gold prices held steady on Friday, but were headed for a weekly loss after hot inflation data trimmed rate-cut bets, while the market focus shifted to talks between U.S. President Donald Trump and his Russian counterpart Vladimir Putin. Spot gold was little changed at $3,336.66 per ounce, and was down 1.8% for the week. U.S. gold futures settled almost flat at $3,382.6. The U.S. dollar eased, making dollar-denominated commodities more affordable for holders of other currencies. Data on Thursday showed that U.S. producer prices increased by the most in three years in July. Traders currently see a 92.6% chance of a 25-basis-point rate cut by the Federal Reserve in September, compared to a fully priced 25-bps cut and a 5% chance of a larger 50-bps move before the data.
4. Oil settled nearly $1 lower as Trump-Putin talks loom
Oil prices closed down nearly $1 on Friday as traders awaited talks between U.S. President Donald Trump and Russian leader Vladimir Putin, which could lead to an easing of the sanctions imposed on Moscow over the war in Ukraine. Brent crude futures settled 99 cents, or 1.5%, lower at $65.85 a barrel, while U.S. West Texas Intermediate crude futures eased $1.16, or 1.8%, lower at $62.80. Trump arrived in Alaska on Friday for his summit with Putin after saying he wants to see a ceasefire in the war in Ukraine “today.” Trump has said he believes Russia is prepared to end the war, but he has also threatened to impose secondary sanctions on countries that buy Russian oil if there is no progress with peace talks. For the week, WTI dropped 1.7%, while Brent eased 1.1%.
5. Dollar slips as data keep September rate cut on table, eyes on Trump-Putin meeting
The dollar eased on Friday as a data-heavy week wound down, keeping the case for a September Federal Reserve interest rate cut intact, while traders awaited talks in Alaska between Donald Trump and Vladimir Putin regarding Ukraine. The dollar, which had jumped on Thursday as data showed U.S. producer prices increased more than expected in July, gave up most of those gains on Friday, and was set to finish the week 0.5% lower against a basket of currencies. Money markets reflect a 93% chance of a 25-basis-point Fed rate cut in September, according to CME FedWatch. A Fed interest rate cut in September, the first this year, followed perhaps by another before year-end, remains the base forecast for most economists amid rising concerns about the health of the world’s biggest economy.
6. Trump hails meeting with Putin as ‘productive’ after talks over Ukraine fail to reach a breakthrough
The high-stakes summit on Friday between U.S. President Donald Trump and Russia’s Vladimir Putin did not result in a breakthrough, even as Trump described it as “productive,” while Putin proposed another meeting in Moscow. The White House had played down the talks — initially seen as an attempt at securing a ceasefire between Russia and Ukraine — with spokesperson Karoline Leavitt calling the summit, “a listening exercise for the president.” Following the Friday meeting Trump said, “There’s no deal until there’s a deal.” Ukraine was not part of the discussions, stoking concerns that a potential deal could have compromised the country’s sovereignty. Putin called the talks a “starting point,” both for the resolution of the conflict with Kyiv as well as for improving relations with Washington, which he said had “fallen to the lowest point since the Cold War.”
7. U.S. delegation’s India visit reportedly called off as trade tensions simmer
A scheduled visit by U.S. trade representatives to New Delhi later this month has been called off, according to Indian media sources. The visit that was expected to take place between Aug. 25 and Aug. 29 will likely be rescheduled, NDTV reported, citing people familiar with the matter. The report comes at a time when trade relations between the two countries have soured with U.S. President Donald Trump imposing a 25% blanket tariff on Indian exports, and topping those with additional 25% in duties — expected to come into effect on Aug. 27 — as a “penalty” for India purchasing Russian crude. Both sides are in contact with each other, but a new schedule for talks has not been finalized, the report said. Trump’s cumulative 50% tariff rate on India is among the highest on any of the U.S.′ trading partners, and has drawn a sharp response from New Delhi.
8. Trump warned by top Senate Democrats to rethink advanced AI chip sales to China
Six Senate Democrats on Friday released an open letter asking President Donald Trump to reconsider his decision to allow tech giants Nvidia and Advanced Micro Devices to sell AI semiconductor chips to China in exchange for 15% of revenue from the sales. The letter — signed by Senators Chuck Schumer, D-N.Y.; Mark Warner, D-Va.; Jack Reed, D-R.I.; Jeanne Shaheen, D-N.H.; Christopher Coons, D-Del.; and Elizabeth Warren, D-Mass. — was in response to an Aug. 11 announcement by Trump that Nvidia and AMD would pay the U.S. government a 15% cut of revenue from chip sales to China in exchange for export licenses. Senators also warned that selling advanced AI chips — specifically Nvidia’s H20 and AMD’s MI308 chips — to China could help strengthen its military systems, a claim that Nvidia denies.
9. Zelenskyy to travel to Washington today for talks with Trump
U.S. President Donald Trump said Saturday that his summit with Russian President Vladimir Putin “went very well” after the pair met for hours one day prior. The two leaders did not reach a ceasefire agreement following the talks, which Trump had repeatedly emphasized in the lead-up to their meeting. Instead, Trump wrote on social media: “It was determined by all that the best way to end the horrific war between Russia and Ukraine is to go directly to a Peace Agreement, which would end the war, and not a mere Ceasefire Agreement, which often times do not hold up.” Trump’s comments put him at odds with officials in Ukraine and European leaders who are urgently seeking a lasting ceasefire in the ongoing war. Trump, who said he spoke with Zelenskyy and other European leaders overnight, is poised to meet with the Ukrainian leader in the Oval Office on Monday afternoon, he said in a Truth Social post. “If all works out, we will then schedule a meeting with President Putin,” Trump also said.
10. Trump says no imminent plans to penalize China for buying Russian oil
U.S. President Donald Trump said on Friday he did not immediately need to consider retaliatory tariffs on countries such as China for buying Russian oil but might have to “in two or three weeks.” Trump has threatened sanctions on Moscow and secondary sanctions on countries that buy its oil if no moves are made to end the war in Ukraine. China and India are the top two buyers of Russian oil. The president last week imposed an additional 25% tariff on Indian goods, citing its continued imports of Russian oil. However, Trump has not taken similar action against China. Xi and Trump are working on a trade deal that could lower tensions – and import taxes – between the world’s two biggest economies. But China could be the biggest remaining target, outside of Russia, if Trump ramps up punitive measures.
11. China isn’t welcoming Nvidia back with open arms after Trump clears way for H20 exports
Nvidia secured what was seen as a major win last month when the U.S. government announced it would allow it to resume sales of its made-for-China H20 chip. But it has since become clear that Beijing won’t be rolling out the red carpet. Despite the U.S. softening on chip export controls — which Beijing has long opposed — Nvidia is being welcomed back under increased distrust and scrutiny. On Tuesday, Bloomberg reported that China had urged companies against using Nvidia’s H20 chips, or those from Advanced Micro Devices, especially for government and national security use cases, citing sources familiar with the matter. In response to the report, Nvidia said in a statement that the H20 “is not a military product or for government infrastructure,” and that banning the sale of H20 in China would only harm U.S. economic and technology leadership with zero national security benefit.
12. Samsung taking market share from Apple in U.S. as foldable phones gain momentum
In the second quarter, shipments from Samsung surged in the U.S., with its market share rising from 23% to 31% from the prior period, according to published data. Apple’s market share during the quarter declined to 49% from 56%. Apple remains on top of the U.S. smartphone market, taking the majority of new smartphone sales in the U.S. It’s often in second place around the world, but the recent slips points to turbulence for Apple for the first time in well over a decade. That’s one reason investors have sent Apple shares down 7.5% this year, underperforming all of the U.S. Mega cap tech companies other than Tesla.
13. Meta plans fourth restructuring of AI efforts in six months, The Information reports
Meta is planning its fourth overhaul of artificial intelligence efforts in six months, The Information reported on Friday, citing three people familiar with the matter. The company is expected to divide its new AI unit, Superintelligence Labs, into four groups: a new “TBD Lab,” short for to be determined; a products team including the Meta AI assistant; an infrastructure team; and the Fundamental AI Research lab focused on long-term research, the report said, citing two people. CEO Mark Zuckerberg is going all-in to fast-track work on artificial general intelligence — machines that can outthink humans — and help create new cash flows. Meta recently reorganized the company’s AI efforts under Superintelligence Labs, a high-stakes push that followed senior staff departures and a poor reception for Meta’s latest open-source Llama 4 model. The social media giant has tapped U.S. bond giant PIMCO and alternative asset manager Blue Owl Capital to spearhead a $29 billion financing for its data centre expansion in rural Louisiana, Reuters reported earlier this month.
14. Solar stocks surge after Treasury tightens clean energy tax credit rules
Solar and renewable energy stocks rallied sharply Friday after the U.S. Treasury Department and IRS released new guidance on clean energy project construction requirements for tax credit qualification. First Solar (NASDAQ:FSLR) stock rose 13%, NextEra Energy (NYSE:NEE) gained 5%, Enphase Energy (NASDAQ: ENPH) climbed 12%, following the release of Notice 2025-42, which clarifies construction requirements for projects seeking to qualify for clean energy tax credits. The new guidance eliminates the previously available “safe harbour” option that allowed developers to qualify for tax credits by investing at least 5% of project costs while delaying physical construction. Under the updated rules, most wind and solar facilities must now meet the “physical work test” to qualify for credits before they expire.
15. Fitch affirms Citigroup’s ’A’ rating with stable outlook
Fitch Ratings has affirmed Citigroup’s long-term and short-term issuer default ratings at ’A’ and ’F1’ respectively, with a stable outlook. The credit rating agency also affirmed Citigroup’s Viability Rating at ’a’ and maintained the Government Support Rating at ’ns’ for both Citigroup and its primary operating bank subsidiary, Citibank, N.A. The bank has successfully executed against its 2022 investor day strategy, including exiting international consumer franchises, reorganizing segments, simplifying its organization, investing in systems, and improving governance. Fitch’s decision reflects Citigroup’s progress in regulatory remediation and improvements to its business profile.
