The US core PCE matched expectations and Alibaba’s new AI chip sparked a market rally.
Key moves
- US Core PCE (July YoY) – 2.9% (in line with 2.9% forecast)
- US Dollar – edged lower at month’s end
- Gold – returned to the upper bound of a four‑month range
- SP 500 & Nasdaq – fell as Nvidia shares dropped
- Nvidia – shares declined after a WSJ report on Alibaba’s AI chip
- Alibaba – shares rose on announcement of new AI chip
- Canada GDP (June) – contracted 0.1% versus a 0.1% rise expected
- Fed Outlook – Fed official signaled possible September rate cut
Summary
Data largely confirmed expectations, while market sentiment swung on Nvidia’s dip and Alibaba’s chip breakthrough. Risk‑off flows lifted gold and short‑term Treasuries, though the dollar and bitcoin fell. The Fed’s hint at a September rate cut added a forward‑looking focus as markets await next week’s ADP report.
(Source)
