TL;DR

Powell signals September rate cut; Nvidia earnings in focus; Evergrande delisted amid China property crisis.

Highlights

• Fed Chair Powell signals potential September rate cut; futures price in 84% chance, supporting global equities25.
• US equity futures steady after Dow Jones Industrial Average closes at record high; S&P 500 near all-time high ahead of Nvidia earnings5.
• Nvidia set to report Q2 results Wednesday; options imply ~6% move, key for tech sector sentiment5.
• Asian stocks rally: Nikkei tops 43,000, Shanghai Composite hits decade high; Chinese equities see strong inflows210.
• Evergrande delisted in Hong Kong, underscoring China’s property crisis; Shanghai eases home-buying rules to stabilize real estate19.
• PDD Holdings ADRs jump 11% on Q2 profit beat; Dongfeng Motor surges 69% on take-private and EV spin-off plan715.
• TSMC removes Chinese equipment from 2nm lines amid US policy pressure, highlighting ongoing tech supply chain shifts6.
• Bitcoin drops below $111,000 after $2.7B whale sale and ETF outflows; Ethereum outperforms, with Bitmine and others accumulating413.
• MicroStrategy and Metaplanet expand Bitcoin holdings; Metaplanet to join FTSE Japan Index, signaling rising institutional adoption1119.
• FDA suspends Valneva ’s chikungunya vaccine, shares fall 25%; sector faces renewed safety scrutiny8.
• Thoma Bravo nears $2B deal to acquire Verint Systems ; Vertiv completes $200M data center acquisition, reflecting ongoing tech M&A14.
• Geopolitical risks persist: Israeli strike hits Gaza hospital; Israel offers phased Lebanon pullback if Hezbollah disarms316.

Commentary

US markets enter the week with a risk-on tone, supported by Fed Chair Powell’s dovish Jackson Hole comments and a high probability of a September rate cut now priced in25. This has driven global equity strength, with the Dow Jones Industrial Average closing at a record and S&P 500 futures holding steady5. Asian markets outperformed overnight, led by Japan’s Nikkei and China’s Shanghai Composite, both hitting multi-year highs amid strong liquidity and policy support—particularly as Shanghai rolls out new home-buying incentives to counter property sector stress highlighted by Evergrande’s delisting291.

Tech remains in focus as Nvidia ’s Q2 earnings on Wednesday are expected to drive sector sentiment; options market implies a notable move, and the results will be closely watched for AI demand trends and any commentary on export restrictions5. Chinese ADRs are also in play, with PDD Holdings rallying on better-than-expected earnings and Dongfeng Motor surging on restructuring news715. TSMC ’s removal of Chinese equipment from advanced chip lines underlines ongoing US-China tech decoupling, which could impact global semiconductor supply chains6.

In digital assets, Bitcoin faces pressure from large-scale sales and continued ETF outflows, while Ethereum sees relative strength and institutional accumulation413. Notable corporate buyers like MicroStrategy and Metaplanet continue to expand holdings, with Metaplanet’s FTSE index inclusion highlighting the growing crossover between crypto and traditional markets1119. Crypto volatility remains elevated, with sector flows rotating between tokens.

Elsewhere, the FDA’s suspension of Valneva ’s chikungunya vaccine has triggered a sharp selloff in the stock and renewed focus on biotech safety risks8. M&A activity continues in the tech and infrastructure sectors, with Thoma Bravo nearing a $2B acquisition of Verint Systems and Vertiv completing a data center deal14. Geopolitical developments in the Middle East remain a background risk, with new Israeli strikes in Gaza and diplomatic moves regarding Lebanon316.

Traders should focus on Nvidia ’s earnings, US tech momentum, developments in China’s property and tech sectors, and ongoing volatility in crypto. Macro data and any Fed commentary will remain key for rate expectations and cross-asset positioning.