TL;DR

Fed holds rates on tariff inflation risk; tech and chips slide; Trump halts new wind/solar projects.

Highlights

• Fed minutes show strong support to hold rates at 4.25–4.50%, with inflation risks from tariffs cited; early rate cuts seen as unlikely1.
• Nasdaq 100 posts sharpest two-day drop since April, led by tech and AI weakness; Palantir down over 20% in six days after renewed Citron short45.
• Trump administration halts new federal wind and solar project approvals, expands tariffs on imported renewables, raising sector cost pressures3.
• Intel drops over 6% after SoftBank’s $2B discounted equity deal and news of potential U.S. government equity stakes; chip sector broadly lower1011.
• U.S. crude inventories fall by 6M barrels, largest weekly draw since June; gasoline stocks also down, supporting oil prices6.
• DOJ reviewing criminal referral involving Fed Governor Lisa Cook after political criticism of her rate policy votes2.
• Senate Banking Committee sets September vote on major crypto market structure bill, with potential for passage by year-end13.
• China considers allowing yuan-backed stablecoins to boost global use of the renminbi, signaling a shift in digital asset policy12.
• Target names insider Michael Fiddelke as next CEO amid ongoing sales decline; shares drop 10% on succession and outlook concerns14.
• Hertz partners with Amazon Autos to sell used cars online, boosting Hertz shares 14% and pressuring used-car rivals17.
• Israel launches major assault on Gaza City, mobilizing 60,000 reservists; geopolitical risks remain elevated7.
• U.S. sanctions four additional ICC officials over probes of Americans and Israelis, escalating diplomatic tensions8.

Commentary

Markets traded defensively as the Fed minutes confirmed policymakers remain focused on inflation risks—particularly those stemming from recent tariff actions—while showing little appetite for near-term rate cuts1. This stance weighed on risk assets, with the Nasdaq 100 extending its steepest two-day slide since April. High-valuation tech and AI names led the retreat, highlighted by Palantir ’s 20%+ drop following a renewed short call from Citron and broader profit-taking in growth stocks45.

Industrial and renewable energy sectors face additional headwinds after the Trump administration halted new federal wind and solar project approvals and expanded tariffs on imported renewables3. These moves are expected to increase project costs and slow sector growth, compounding inflationary pressures already noted by the Fed13. Meanwhile, Intel ’s discounted equity deal with SoftBank and the possibility of U.S. government equity stakes in chipmakers rattled semiconductors, sending Intel and peers sharply lower amid concerns about dilution and competitive positioning1011.

Energy markets found support from a substantial 6 million barrel draw in U.S. crude inventories and a larger-than-expected gasoline stock decline, pointing to firm demand6. In fixed income, the Treasury’s 20-year auction saw slightly weaker demand but a stop-through yield, as investors recalibrate expectations for Fed policy18. Mortgage activity remains subdued with rates near two-decade highs18.

Crypto markets are watching U.S. regulatory developments closely, as the Senate Banking Committee prepares to advance a comprehensive market structure bill in September, with bipartisan support suggesting a framework could be in place by year-end13. China’s potential approval of yuan-backed stablecoins marks a notable policy shift and could have long-term currency market implications12.

Geopolitical risks are elevated with Israel’s expanded Gaza offensive and new U.S. sanctions on ICC officials78. Traders should monitor for further safe-haven flows and headline risk into the close, particularly in equities, energy, and FX. Focus remains on tech/AI volatility, oil’s response to inventory data, and any late Fed commentary ahead of Jackson Hole.