1. Japan’s Nikkei 225 benchmark fell after closing at a record high in its Monday session: Markets Wrap
Meanwhile, Asia-Pacific markets closed lower Tuesday, tracking Wall Street declines overnight ahead of the U.S. Federal Reserve meeting later this week. Investors also assessed the talks between U.S. President Donald Trump, Ukraine’s President Volodymyr Zelenskyy and European leaders at the White House, aimed at stopping the Moscow-Kyiv conflict. Japan’s Nikkei 225 benchmark ended the day 0.38% lower at 43,546.29, after closing at a record high in its previous session, while the broader Topix index fell 0.14% to close at 3,116.63. In South Korea, the Kospi index retreated 0.81% to close at 3,151.56, while the small-cap Kosdaq declined by 1.26% to 787.96. Mainland China’s CSI 300 moved down 0.38% to close at 4,223.37, after closing at its highest level since October 2024 in its previous session, while Hong Kong’s Hang Seng Index was flat in its final hour.
2. S&P 500 closes lower as Nvidia pulls down tech sector, Dow briefly touches record
The S&P 500 pulled back in afternoon trading Tuesday amid a broad decline in technology stocks. The broad market S&P 500 lost 0.6%, while the Nasdaq Composite fell 1.5%. The Dow Jones Industrial Average added about 10 points, or 0.02%, after briefly touching a fresh record high. Wall Street is also looking for clues from Powell as to what will happen at the central bank’s remaining policy meetings this year. Central bank officials from around the globe will convene this week in Jackson Hole, Wyoming for the Fed’s annual economic symposium. The fed funds futures market is indicating an 83% chance for a quarter-point rate cut at the Fed’s next policy meeting in September, according to CME’s FedWatch tool.
3. Gold falls as investors await Fed’s Jackson Hole conference
Gold prices edged lower on Tuesday as the U.S. dollar firmed, while investors hunkered down for Federal Reserve Chair Jerome Powell’s speech at Jackson Hole later this week. Spot gold fell 0.4% to $3,317.99 per ounce. The contract hit its lowest level since August 1 earlier in the session. U.S. gold futures for December delivery fell 0.5% to $3,361.80. The dollar index pared losses and was steady, while benchmark 10-year yields slipped. The Federal Reserve is set to hold its annual symposium later this week in Jackson Hole, Wyoming, with Fed Chair Jerome Powell scheduled to speak on the economic outlook and central bank’s policy framework on Friday.
4. Oil prices fall as Ukraine talks raise prospect of sanctions easing
Oil prices fell on Tuesday as traders weighed the possibility that talks between Russia, Ukraine and the U.S. to end the war in Ukraine could lead to the lifting of sanctions on Russian crude, raising supply. Brent crude futures fell 81 cents, or 1.22%, to close at $65.79 a barrel. U.S. West Texas Intermediate crude futures for September delivery, set to expire on Wednesday, fell $1.07, or 1.69%, to settle at $62.35 per barrel. The more active October WTI contract was down 46 cents, or 0.73%, at $62.24 a barrel. Prices settled around 1% higher in the previous session. Trump said arrangements were being made for a meeting between Putin and Zelenskiy, which could lead to a trilateral summit involving all three leaders.
5. Dollar mixed as traders wait on Jackson Hole
The dollar was mixed on Tuesday as traders awaited the Federal Reserve’s Jackson Hole Economic Policy Symposium later this week for further clues on U.S. interest rate policy. A speech on Friday by Fed Chair Jerome Powell is this week’s main focus, with little major economic data to drive market direction. Traders are tuned into whether Powell will push back against market pricing of a rate cut in September. Traders ramped up bets on a rate cut at the Fed’s September 16-17 meeting after a weak July jobs report, and as last month’s consumer price inflation report showed limited upward pressure from tariffs. But a hotter-than-expected July producer price reading has tempered some rate-cut expectations. Powell has said he is reluctant to cut rates due to an expected increase in inflation this summer from tariffs.
6. Trump expands 50% steel and aluminium tariffs to include 407 additional product types
The Trump administration has quietly expanded its 50% steel and aluminium tariffs to include more than 400 additional product categories, vastly increasing the reach and impact of this arm of its trade agenda. The new tariffs, which took effect Monday, expand the scope of the levies that President Donald Trump previously announced on the valuable commodities. The tariff list now covers products such as fire extinguishers, machinery, construction materials and specialty chemicals that either contain, or are contained in, aluminium or steel. The levies extend to 407 new product categories, the Department of Commerce said Tuesday. Experts say the impact will be enormous.
7. Trump tariff revenue expected to offset tax bill impact, S&P says in US credit rating hold
S&P Global said it expects “meaningful” federal government revenue from President Donald Trump’s broad tariff policies to “generally offset weaker” revenue expected from Trump’s recently enacted major tax-and-spending bill. S&P Global cited that outlook on Monday as it maintained its AA+ rating on long-term U.S. sovereign debt and its A-1+ rating on “short-term unsolicited sovereign credit.” But the company warned, “We could lower the rating over the next two to three years if already high deficits increase, reflecting political inability to contain rising spending or to manage revenue implications from changes in the tax code. “It also cautioned that the ratings could “come under pressure if political developments weigh on the strength of American institutions and the effectiveness of long-term policymaking or independence of the Federal Reserve.”
8. Trump promised Ukraine ‘security guarantees’
On the face of it, talks on Monday between U.S. President Donald Trump and Ukraine’s President Volodymyr Zelenskyy and European leaders went well. The U.S. and Ukrainian leaders were pictured looking jovial and smiling together — a far cry from the extraordinary shouting match and public humiliation inflicted on Zelenskyy during his last trip to the White House in February. Monday’s talks, which involved a raft of European leaders, appeared to make progress toward ending the protracted war between Russia and Ukraine, with Trump saying a meeting between Russian President Vladimir Putin and Zelenskyy would be arranged, followed by a trilateral meeting that he would join. The most significant development result for Kyiv and Europe, however, was Trump’s statement that security guarantees for Ukraine would be “provided” by European countries in “coordination with the U.S.”
9. Apple reportedly ups iPhone production in India as country’s Russia ties roil White House
Apple has reportedly boosted iPhone production in India as the country faces pressure from the White House over its Russian oil purchases. Bessent accused India of “profiteering” by purchasing cheap Russian oil and reselling it during the Ukraine war, “which is unacceptable.” Earlier this month, President Donald Trump hiked tariffs on India to 50%. The president said in July that he would impose secondary tariffs “at about 100%” on Russia’s trading partners if a peace deal isn’t reached with Ukraine by September. The expansion includes some new plants and factories belonging to the Tata Group and contract electronics manufacturer Foxconn Technology, according to the report, citing people familiar with the matter. Apple is also looking to create a new iPhone 17e in India next year, according to the report.
10. Lutnick says Intel has to give government equity in return for CHIPS Act funds
Commerce Secretary Howard Lutnick said Tuesday that Intel must give the U.S. government an equity stake in the company in return for CHIPS Act funds. Shares of the struggling chipmaker climbed nearly 7% on Tuesday, continuing to rally on recent reports that the Trump administration is weighing different ways to get involved with the company. Intel and SoftBank announced Monday that the Japanese conglomerate will make a $2 billion investment in the chipmaker. The investment, equal to about 2% of Intel, makes SoftBank the fifth-biggest shareholder, according to FactSet. Lutnick said any potential arrangement wouldn’t provide the government with voting or governance rights in Intel. Lutnick also suggested that President Donald Trump could seek out similar deals with other CHIPS recipients.
11. Nvidia says it’s evaluating a ‘variety of products’ after report of new AI chip for China
Nvidia said Tuesday that it is evaluating several products following a report that the company is working on a new artificial intelligence chip for China that is more powerful than the currently available H20. The new product, tentatively called the B30A, is expected to be based on Nvidia’s Blackwell chip architecture, according to people familiar with the company’s plans. Nvidia hopes to deliver sample units to Chinese clients for testing as soon as next month. “We evaluate a variety of products for our roadmap, so that we can be prepared to compete to the extent that governments allow,” the company told reporters. “Everything we offer is with the full approval of the applicable authorities and designed solely for beneficial commercial use.” Shares of Nvidia slipped more than 3% Tuesday along with the broader market. Commerce Secretary Howard Lutnick on Tuesday praised Nvidia CEO Jensen Huang and said he wouldn’t be surprised if Huang wants to sell a new chip to China.
12. Tesla faces class action lawsuit over self-driving claims
Tesla must face a certified class action lawsuit by California drivers who claim Elon Musk misled them about the self-driving capabilities of the company’s electric vehicles over an eight-year period. U.S. District Judge Rita Lin approved the group lawsuit, allowing two sets of drivers who purchased Tesla’s Full Self-Driving technology package to proceed collectively with their claims. In her Monday decision, the San Francisco-based judge determined that the common question of whether Tesla lacked the necessary sensors to achieve high-level autonomy, plus its inability to “demonstrate a long-distance autonomous drive with any of its vehicles,” justified the class action certification.
13. Palo Alto Networks gains after strong earnings and Bank of America upgrade
Palo Alto Networks shares extended their premarket rally on Tuesday, with the shares up nearly 5% in intraday trading. The company reported earnings after the close on Monday, with Q4 EPS of $0.95, $0.06 better than the analyst estimates of $0.89. Revenue for the quarter came in at $2.5 billion versus the consensus estimate of $2.5 billion. Looking ahead, Palo Alto Networks expects FY2026 EPS to be between $3.75 and $3.85, compared to the consensus estimate of $3.69. FY2026 revenue is expected to be between $10.475 billion and $ 10.525 billion, compared to the consensus of $10.44 billion. Following the report, Bank of America upgraded the stock to Buy, citing strong results and an attractive long-term growth profile.
14. Xpeng earnings beat by ¥0.63, revenue fell short of estimates
Xpeng Inc reported better-than-expected earnings for the second quarter while revenue fell slightly short of expectations. The company’s outlook for the current quarter The Chinese electric vehicle (EV) maker posted Q2 loss per share of RMB0.20, beating analyst expectations of a RMB0.083 loss per share. Revenue soared more than 125% year-over-year to RMB18.27 billion, but was slightly below the consensus estimate of RMB18.51 billion. The company delivered 103,181 vehicles in the quarter, up 241.6% from 30,207 a year earlier. Gross margin rose to 17.3%, an improvement of 3.3 percentage points year-on-year, while vehicle margin climbed to 14.3%, up 7.9 points.