TL;DR

Fake Powell exit jolts stocks; US-China tariff talks loom; gold, meme stocks, crypto rally.

Highlights

• Fake Powell resignation letter briefly hit stocks before being debunked 1; Trump reiterated Powell will leave in eight months and criticized high rates 2.
• US-China tariff truce talks set for Stockholm next week; truce expires Aug. 12, risking sharp tariff hikes 3.
• Trump and Marcos finalized a US-Philippines trade pact, cutting tariffs on Philippine goods to 19% and strengthening defense ties 19.
• Gold climbed above $3,415/oz, nearing record highs, as trade tensions and lower yields drove haven demand 13.
• Kohl’s surged over 100% in a meme-driven short squeeze before a NYSE volatility halt; nearly half the float was sold short 6.
• Lockheed Martin fell up to 9% after an 80% profit drop on a $1.6B charge and lowered guidance; IRS claims $4.6B in additional taxes 8.
• Replimune plunged 75% after FDA rejected its melanoma drug, citing inadequate study design 7.
• Congress advanced crypto regulation: House passed key digital asset bills, Trump signed stablecoin law, Senate released draft rules 5.
• PNC partnered with Coinbase to launch direct crypto trading for customers; Telegram rolled out its TON wallet for US users 915.
• Microsoft hired 24 Google DeepMind engineers to strengthen its AI Copilot team 11.
• Apple expected to secure EU approval for revised App Store fees, likely avoiding major penalties 10.
• Ethereum stablecoin float hit a record $140B, doubling in 18 months 18.

Commentary

Markets saw a brief jolt after a fake Powell resignation letter circulated, but losses quickly reversed as the Fed confirmed Powell remains in office 1. However, Trump’s public criticism of Powell and remarks about his expected departure in eight months keep Fed policy and leadership in focus 2. This, along with falling Treasury yields, has supported gold prices, which are trading near all-time highs as investors seek safety amid policy and trade uncertainty 13.

Trade is a key risk with US-China negotiations in Stockholm next week ahead of the Aug. 12 tariff truce expiration 3. If talks fail, tariffs could jump sharply, posing headline risk for equities, especially those exposed to global supply chains. Meanwhile, the US-Philippines trade deal signals continued US efforts to reshape trade relationships, with some near-term relief for Philippine exporters and further Indo-Pacific engagement 19.

Equity volatility remains pronounced. Kohl’s became the latest meme-stock target, surging on a short squeeze driven by high retail interest and short positioning 6, while Lockheed Martin and Replimune both suffered steep drops after disappointing earnings and regulatory news, respectively 87. These moves highlight ongoing single-stock risk, particularly in names with binary catalysts or heavy short interest.

Crypto and digital assets saw structural advances: Congress passed major crypto bills, Trump signed the first stablecoin law, and PNC’s Coinbase partnership signals deeper institutional adoption 59. Ethereum’s stablecoin supply hitting $140B and Telegram’s US wallet launch point to growing mainstream access and on-chain activity 1815.

Traders should monitor late-session moves tied to Fed headlines, US-China trade updates, and meme-stock activity. Defensive positioning in havens and selective exposure to crypto and AI-related names remain in focus.