Michael Yu, partner in charge of Cooley’s Hong Kong office, was quoted in a South China Morning Post article about the increase in biotech and technology initial public offering (IPO) applications in Hong Kong. Cooley was also mentioned for advising Innogen Pharmaceutical on its IPO.
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This report is provided in accordance with section 608(d)(1) of the Millennium Challenge Act of 2003, as amended (the Act) (22 U.S.C. 7707(d)(1)). This is the third such report for fiscal year (FY) 2025, following the August 2025 MCC Board decisions to select Fiji as eligible to develop a compact and Tonga to develop a threshold program.
The Act authorizes the provision of assistance under section 605 of the Act (22 U.S.C. 7704) to countries that enter into compacts with the United States to support policies and programs that advance the progress of such countries in achieving lasting economic growth and are in furtherance of the Act. The Act requires the Millennium Challenge Corporation (MCC) to determine the countries that will be eligible to receive assistance for the fiscal year, based on their demonstrated commitment to good governance, economic freedom, and investing in their people, as well as on the opportunity to invest in shared prosperity. The Act also requires the submission of reports to appropriate congressional committees and the publication of notices in the Federal Register that identify, among other things:
The countries that are “candidate countries” for assistance for FY 2025 based on their per-capita income levels and their eligibility to receive assistance under U.S. law, and countries that would be candidate countries, but for specified legal prohibitions on assistance (section 608(a) of the Act (22 U.S.C. 7707(a)));
The criteria and methodology that the Board of Directors of MCC (the Board) used to measure and evaluate the policy performance of the “candidate countries” consistent with the requirements of section 607 of the Act in order to determine “eligible countries” from among the “candidate countries” (section 608(b) of the Act (22 U.S.C. 7707(b))); and
The list of countries determined by the Board to be “eligible countries” for FY 2025, with justification for eligibility determination and selection for compact negotiation, including with which of the eligible countries the Board will seek to enter into compacts (section 608(d) of the Act (22 U.S.C. 7707(d))).
This is a report that fulfills the requirements under the third of the above-described reports by MCC for FY 2025. Two prior reports were sent to Congress on December 19, 2024 and January 10, 2025. These reports identify countries determined by the Board to be eligible under section 607 of the Act (22 U.S.C. 7706) for FY 2025 with which MCC seeks to enter into compacts under section 609 of the Act (22 U.S.C. 7708), as well as the justification for such decisions. This report also identifies a country selected by the Board to receive assistance under MCC’s threshold program pursuant to section 616 of the Act (22 U.S.C. 7715).
Eligible Countries
Earlier in FY 2025 the Board selected Albania and Liberia as eligible countries with which the United States, through MCC, will seek to enter into Millennium Challenge Compacts pursuant to section 607 of the Act (22 U.S.C. 7706). Those selections were notified to Congress previously.
On August 21, 2025, the Board selected Fiji as eligible to develop a compact.
Criteria
In accordance with the Act and with the “Selection Criteria and Methodology Report for Fiscal Year 2025” formally submitted to Congress on September 20, 2024, selection was based primarily on a country’s overall performance in three broad policy categories: Ruling Justly, Encouraging Economic Freedom, and Investing in People. The Board relied, to the fullest extent possible, upon transparent and independent indicators to assess countries’ policy performance and demonstrated commitment in these three broad policy areas. The Board compared countries’ performance on the indicators relative to their income-level peers, evaluating them in comparison to either the group of countries with a GNI per capita equal to or less than $2,165, the group with a GNI per capita between $2,166 and $4,515, or the group with a GNI per capita between $4,516 and $7,895.
The criteria and methodology used to assess countries, including the methodology for the annual scorecards, are outlined in the “Selection Criteria and Methodology Report for Fiscal Year 2025.” Scorecards reflecting each country’s performance on the indicators are available on MCC’s website at https://www.mcc.gov/who-we-select/scorecards.
Beyond the scorecard, the Board considered additional quantitative and qualitative supplemental information, including the investment climate and opportunities to strengthen market fundamentals, countries’ commitment to undertake reforms, the ability to advance U.S. investments and objectives in the country, the likelihood that MCC investments will be maintained and deliver long-term results, and the opportunity to advance shared prosperity.
The Board sees selection decisions as an opportunity to determine where MCC funds can be most effectively deployed. The Board carefully considers the appropriate nature of each country partnership on a case-by-case basis.
This is the first fiscal year in which the Board used its new authority under the MCC Candidate Country Reform Act to select from the additional group of countries newly included for consideration for MCC assistance. The new authority aligns the income threshold for a country to be an MCC candidate county with the World Bank threshold for initiating the International Bank for Reconstruction and Development graduation process ($7,895 gross national income per capita for fiscal year 2025). In considering any new countries in MCC’s candidate pool, the Board will continue to apply MCC’s statutorily mandated eligibility criteria and selectivity model.
Country newly selected for compact assistance
Using the criteria described above, Fiji, a candidate country under section 606(a) of the Act (22 U.S.C. 7705(a)), was newly selected as eligible for assistance under section 607 of the Act (22 U.S.C. 7706). Fiji is invited by MCC to develop a potential compact.
Fiji: The selection of Fiji presents strategic opportunity to leverage MCC’s expertise to advance America First priorities and demonstrate U.S. commitment to strengthening partnerships in the Pacific. Not only is Fiji a vital security and economic partner for the United States, but it also has a promising environment for advancing private sector growth and U.S. business opportunities, as evidenced by the country’s strong performance on the MCC scorecard. As a regional hub for transport, business, and workforce development, an MCC program with Fiji also has the potential to economically benefit a broader set of Pacific Island countries and to demonstrate constructive U.S. engagement in the region. In consideration of these factors, MCC’s Board of Directors selected Fiji as eligible to develop a compact.
Country newly selected to receive threshold program assistance
The Board selected Tonga to receive threshold program assistance for FY 2025.
Tonga: The Government of Tonga has demonstrated a commitment to undertaking good governance reforms to boost economic growth and attract private investment, as evidenced by its performance on the MCC scorecard. Since opening a new embassy in Tonga in 2023, the United States has worked to strengthen its economic and security cooperation with this increasingly important maritime partner. In consideration of these factors, MCC’s Board of Directors selected Tonga to develop a threshold program.
Gold prices rallied sharply after Powell’s dovish tone highlighted employment risks despite persistent upside risks to inflation.
Traders priced in a 90% probability of a 25 basis-point Fed cut, with key data still ahead before September.
Next week’s US docket includes Durable Goods, GDP, and the Fed’s preferred inflation gauge, the Core PCE Price Index.
Gold prices continue to trend higher on Friday after the Federal Reserve (Fed) leaned dovish, as commented by the Fed Chair Jerome Powell, who said that “downside risks to the labor market are rising.” XAU/USD trades at $3,371 after hitting a daily low of $3,321.
The day arrived and Powell hinted that there’s a “reasonable base case” to think that tariffs would create a “one-time” increase in prices. Nevertheless, he acknowledged that risks to inflation are tilted to the upside and risks to employment to the downside, a “challenging situation.”
After his remarks, Bullion prices initially soared towards the $3,350 area before resuming to the upside, heading to a daily high of $3,378 before retreating somewhat to current price levels.
Market participants had priced in a 90% chance that the Federal Reserve will cut 25 basis points (bps) from its main reference rate, according to Prime Market Terminal. However, there are two inflation prints left and the following Nonfarm Payrolls report on September 5.
Source: Prime Market Terminal
After Powell’s speech, Cleveland Fed President Beth Hammack said that she heard that Powell is open-minded about the policy outlook, and she reiterated her stance to get inflation back to target.
Next week, the US economic docket will feature Fed speeches, Durable Goods Orders, CB Consumer Confidence, GDP figures, Initial Jobless Claims, and the Fed’s preferred inflation gauge measure, the Core Personal Consumption Expenditures (PCE) Price Index.
Daily digest market movers: Gold boosted by speculation of September rate cut
Following Powell’s remarks, US Treasury yields tumbled, flattening the yield curve. The 10-year Treasury note is down nearly seven basis points at 4.261%. US real yields —which are calculated from the nominal yield minus inflation expectations— are down seven bps at 1.871% at the time of writing.
The US Dollar Index (DXY), which tracks the performance of the USD against a basket of six currencies, drops more than 1% to 97.55.
Fed Chair Powell said, “The baseline outlook and the shifting balance of risks may warrant adjusting our policy stance.” He added that “the stability of the unemployment rate and other labor market measures allows us to proceed carefully.”
Cleveland’s Fed Beth Hammack added that the Fed is a small distance away from the neutral rate and that the “Fed needs to be cautious about any move to cut rates.” She expects a rise in inflation and in the unemployment rate.
Technical outlook: Gold price surges towards $3,400
Gold price has risen sharply, but it remains shy of testing the $3,400 mark. Bulls emerged on Powell’s remarks but remain cautious as geopolitical risk had de-escalated following upbeat news at the beginning of the week, regarding Russia and Ukraine.
If XAU/USD climbs past $3,400, the next resistance would be the June 16 high of $3,452, ahead of the record high of $3,500. On the flipside, the $3,300 figure would be the first demand zone.
Conversely, if Bullion retraces, it could halt its stop at the 50-day Simple Moving Average (SMA) at around $3,350. On further weakness, the 20-day SMA at $3,345 is up next, followed by the 100-day SMA at $3,309.
Fed FAQs
Monetary policy in the US is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability and foster full employment. Its primary tool to achieve these goals is by adjusting interest rates.
When prices are rising too quickly and inflation is above the Fed’s 2% target, it raises interest rates, increasing borrowing costs throughout the economy. This results in a stronger US Dollar (USD) as it makes the US a more attractive place for international investors to park their money.
When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates to encourage borrowing, which weighs on the Greenback.
The Federal Reserve (Fed) holds eight policy meetings a year, where the Federal Open Market Committee (FOMC) assesses economic conditions and makes monetary policy decisions.
The FOMC is attended by twelve Fed officials – the seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four of the remaining eleven regional Reserve Bank presidents, who serve one-year terms on a rotating basis.
In extreme situations, the Federal Reserve may resort to a policy named Quantitative Easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system.
It is a non-standard policy measure used during crises or when inflation is extremely low. It was the Fed’s weapon of choice during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy high grade bonds from financial institutions. QE usually weakens the US Dollar.
Quantitative tightening (QT) is the reverse process of QE, whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing, to purchase new bonds. It is usually positive for the value of the US Dollar.
Nvidia (NASDAQ:NVDA) is giving data centers a new way to scale. The chip giant on Friday unveiled Spectrum-XGS Ethernet, a networking platform built to connect AI factories not just within one building but across cities, countries and even continents. Shares rose 1.7% in late morning trading.
CEO Jensen Huang called the launch a cornerstone for the next phase of AI growth. The AI industrial revolution is here, he said, describing Spectrum-XGS as a scale-across system that extends beyond the traditional scale-up or scale-out models, linking massive compute clusters into what he calls giga-scale AI factories.
The tech plugs directly into Nvidia’s Spectrum-X platform and automatically manages latency, congestion and telemetry over long distances. The company said it nearly doubles the performance of its Collective Communications Library. Hyperscaler CoreWeave (NASDAQ:CRWV) is already among the first to test the system by tying its data centers together.
The timing is key. Nvidia is set to report results on Aug. 27, with Wall Street expecting $46 billion in revenue and EPS of $1.01. Investors will be watching if the networking push strengthens Nvidia’s grip on the AI infrastructure market.
U.S. Government to make $8.9 billion investment in Intel common stock as company builds upon its more than $100 billion expansion of resilient semiconductor supply chain
SANTA CLARA, Calif.–(BUSINESS WIRE)–
Intel Corporation today announced an agreement with the Trump Administration to support the continued expansion of American technology and manufacturing leadership. Under terms of the agreement, the United States government will make an $8.9 billion investment in Intel common stock, reflecting the confidence the Administration has in Intel to advance key national priorities and the critically important role the company plays in expanding the domestic semiconductor industry.
The government’s equity stake will be funded by the remaining $5.7 billion in grants previously awarded, but not yet paid, to Intel under the U.S. CHIPS and Science Act and $3.2 billion awarded to the company as part of the Secure Enclave program. Intel will continue to deliver on its Secure Enclave obligations and reaffirmed its commitment to delivering trusted and secure semiconductors to the U.S. Department of Defense. The $8.9 billion investment is in addition to the $2.2 billion in CHIPS grants Intel has received to date, making for a total investment of $11.1 billion.
“As the only semiconductor company that does leading-edge logic R&D and manufacturing in the U.S., Intel is deeply committed to ensuring the world’s most advanced technologies are American made,” said Lip-Bu Tan, CEO of Intel. “President Trump’s focus on U.S. chip manufacturing is driving historic investments in a vital industry that is integral to the country’s economic and national security. We are grateful for the confidence the President and the Administration have placed in Intel, and we look forward to working to advance U.S. technology and manufacturing leadership.”
“Intel is excited to welcome the United States of America as a shareholder, helping to create the most advanced chips in the world,” said Howard Lutnick, United States Secretary of Commerce. “As more companies look to invest in America, this administration remains committed to reinforcing our country’s dominance in artificial intelligence while strengthening our national security.”
Under the terms of today’s announcement, the government agrees to purchase 433.3 million primary shares of Intel common stock at a price of $20.47 per share, equivalent to a 9.9 percent stake in the company. This investment provides American taxpayers with a discount to the current market price while enabling the U.S. and existing shareholders to benefit from Intel’s long-term business success.
The government’s investment in Intel will be a passive ownership, with no Board representation or other governance or information rights. The government also agrees to vote with the Company’s Board of Directors on matters requiring shareholder approval, with limited exceptions.
The government will receive a five-year warrant, at $20 per share for an additional five percent of Intel common shares, exercisable only if Intel ceases to own at least 51% of the foundry business.
The existing claw-back and profit-sharing provisions associated with the government’s previously dispersed $2.2 billion grant to Intel under the CHIPS Act will be eliminated to create permanency of capital as the company advances its U.S. investment plans.
Investing in America’s Future
Intel has continued to strategically invest in research, development and manufacturing in the United States since the company’s founding in 1968. Over the last five years, Intel has invested $108 billion in capital and $79 billion in R&D, the majority of which were dedicated to expanding U.S.-based manufacturing capacity and process technology.
Intel is currently undertaking a significant expansion of its domestic chipmaking capacity, investing more than $100 billion to expand its U.S. sites. The company’s newest chip fabrication site in Arizona is expected to begin high-volume production later this year, featuring the most advanced semiconductor manufacturing process technology on U.S. soil.
Since joining the company as CEO in March, Tan has taken swift actions to strengthen Intel’s financial position, drive disciplined execution and revitalize an engineering-first culture. Today’s agreement supports the company’s broader strategy to position Intel for the future.
Strengthening the U.S. Technology Ecosystem
Intel’s U.S. investments come as many leading technology companies support President Trump’s agenda to achieve U.S. technology and manufacturing leadership.
Intel is deeply engaged with current and potential customers and partners who share its commitment to building a strong and resilient U.S. semiconductor supply chain.
Satya Nadella, Chairman and Chief Executive Officer, Microsoft: “The decades-long partnership between Microsoft and Intel has pioneered new frontiers of technology and showcased the very best of American ingenuity and innovation. Intel’s continued investment in strengthening the U.S. semiconductor supply chain, supported by President Trump’s bold strategy to rebuild this critical industry on American soil, will benefit the country and broader technology ecosystem for years to come.”
Michael Dell, Chairman and Chief Executive Officer, Dell Technologies: “The industry needs a strong and resilient U.S. semiconductor industry, and no company is more important to this mission than Intel. It’s great to see Intel and the Trump Administration working together to advance U.S. technology and manufacturing leadership. Dell fully supports these shared priorities, and we look forward to bringing a new generation of products to market powered by American-designed and manufactured Intel chips.”
Enrique Lores, President and CEO, HP: “We share Intel’s and the Trump Administration’s deep commitment to building a strong, resilient and secure U.S. semiconductor industry. Intel’s continued investment in domestic R&D and manufacturing is integral to future innovation and will strengthen the partnership between HP and Intel for years come. This is a defining moment for great American companies to lead the world in cutting-edge technologies that will shape the future.”
Matt Garman, AWS CEO:“Leading-edge semiconductors are the bedrock of every AI technology and cloud platform, making U.S. investment in this critical industry one of the most important technological, economic and national security imperatives of our time. Intel plays a vital role as one of the country’s leading chip manufacturers, and we applaud the Trump administration’s efforts to usher in a new era of American innovation in partnership with American companies.”
PJT Partners acted as Intel’s exclusive financial advisor in connection with this investment agreement.
About Intel
Intel (Nasdaq: INTC) is an industry leader, creating world-changing technology that enables global progress and enriches lives. Inspired by Moore’s Law, we continuously work to advance the design and manufacturing of semiconductors to help address our customers’ greatest challenges. By embedding intelligence in the cloud, network, edge and every kind of computing device, we unleash the potential of data to transform business and society for the better. To learn more about Intel’s innovations, go to newsroom.intel.com and intel.com.
Forward-Looking Statements
This release contains forward-looking statements, including with respect to: the agreement with the U.S. government and its expected benefits, including the anticipated timing of closing and impacts to Intel’s existing agreements with the U.S. government under the CHIPS Act; Intel’s investment plans, including in manufacturing expansion projects and R&D; and the anticipated production using Intel’s latest semiconductor process technology in Arizona later this year. Such statements involve many risks and uncertainties that could cause our actual results to differ materially from those expressed or implied, including those associated with: uncertainties as to the timing of the consummation of the transaction and the receipt of funding; Intel’s ability to effectively use the proceeds and realize and utilize the other anticipated benefits of the transaction as contemplated thereby; the availability of appropriations from the legislative branch of the U.S. government and the ability of the executive branch of the U.S. government to obtain funding and support contemplated by the transaction; the determination by the legislative, judicial or executive branches of the U.S. government that any aspect of the transaction was unauthorized, void or voidable; Intel’s ability to obtain additional or replacement financing, as needed; Intel’s ability to effectively assess, determine and monitor the financial, tax and accounting treatment of the transaction, together with Intel’s and the U.S. government’s obligations thereunder; litigation related to the transaction or otherwise; potential adverse reactions or changes to business relationships resulting from the announcement or completion of the transaction; the timing and achievement of expected business milestones; Intel’s ability to effectively comply with the broader legal and regulatory requirements and heightened scrutiny associated with government partnerships and contracts; the high level of competition and rapid technological change in the semiconductor industry; the significant long-term and inherently risky investments Intel is making in R&D and manufacturing facilities that may not realize a favorable return; the complexities and uncertainties in developing and implementing new semiconductor products and manufacturing process technologies; Intel’s ability to time and scale its capital investments appropriately; changes in demand for Intel’s products; macroeconomic conditions and geopolitical tensions and conflicts, including geopolitical and trade tensions between the U.S. and China, the impacts of Russia’s war on Ukraine, tensions and conflict affecting Israel and the Middle East, and rising tensions between mainland China and Taiwan; the evolving market for products with AI capabilities; Intel’s complex global supply chain supporting its manufacturing facilities and incorporating external foundries, including from disruptions, delays, trade tensions and conflicts, or shortages; recently elevated geopolitical tensions, volatility and uncertainty with respect to international trade policies, including tariffs and export controls, impacting Intel’s business, the markets in which it competes and the world economy; product defects, errata and other product issues, particularly as Intel develops next-generation products and implements next-generation manufacturing process technologies; potential security vulnerabilities in Intel’s products; increasing and evolving cybersecurity threats and privacy risks; IP risks including related litigation and regulatory proceedings; the need to attract, retain, and motivate key talent; Intel’s debt obligations and its ability to access sources of capital; complex and evolving laws and regulations across many jurisdictions; fluctuations in currency exchange rates; changes in Intel’s effective tax rate; catastrophic events; environmental, health, safety, and product regulations; and other risks and uncertainties described in this release and Intel’s 2024 Form 10-K, Q1 2025 Form 10-Q, Q2 2025 Form 10-Q, and other filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they were first made. Intel does not undertake, and expressly disclaims any duty, to update such statements, whether as a result of new information, new developments, or otherwise, except to the extent that disclosure may be required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250822458848/en/
The likelihood of lower borrowing costs helped boost solar stocks, with shares of solar microinverter and battery storage specialist Enphase Energy (ENPH) soaring 10.4% to post the best performance of any stock in the benchmark index.
Fed Chair Powell’s openness to near-term rate reductions also came as welcome news to companies with exposure to the housing market, which could see accelerated growth as mortgage rates retreat. Shares of Builders FirstSource (BLDR), a major supplier of residential construction materials, jumped 8.4%. Shares of flooring supplier Mohawk Industries (MHK) were up 7.3%.
Travel industry stocks also gained ground as a decline in borrowing costs could encourage consumers to increase their discretionary spending. Shares of cruise operators Norwegian Cruise Line Holdings (NCLH) and Carnival (CCL) advanced around 7%, while airline stocks also moved higher.
A Carnival Cruise liner leaving Sydney Harbor in June.
Steve Christo / Corbis/ Getty Images
Decliners
Intuit (INTU) shares tumbled 5%, suffering the heaviest daily decline in the S&P 500, after the maker of tax and accounting software provided a weaker-than-expected outlook for the current quarter and the full year. The company pointed to soft demand for its MailChimp marketing platform and lower average revenue per user from TurboTax. The outlook overshadowed strong quarterly results, as Intuit beat quarterly sales and adjusted profit estimates, highlighting the contribution of its AI agents.
Major railroad operator and rail-to-truck transloader CSX (CSX) announced a coast-to-coast intermodal partnership with BNSF Railway, a subsidiary of Berkshire Hathaway (BRK.A, BRK.B). The move comes a few weeks after Union Pacific (UNP) and Norfolk Southern (NSC) agreed to a merger that would create the first transcontinental U.S. railroad, with CSX facing pressure from an activist investor to explore a potential deal of its own. CSX stock dropped 3.6% on Friday.
Shares of enterprise resource planning software provider Workday (WDAY) fell 2.8%. Although the company topped revenue estimates and edged out revenue expectations for its fiscal second quarter, its guidance for subscription revenue and operating margin in the current quarter came in below consensus forecasts. Workday’s CEO pointed to challenges facing the company’s government and education businesses as customers navigate funding cuts.
–Michael Bromberg
Here Are The Stocks Set to Benefit From Lower Rates
1 hr 42 min ago
Each of the major indexes finished the day sharply higher, led by a gain of nearly 4% for the Russell 2000 small-cap index, which closed at its highest level of 2025. Stocks that are particularly sensitive to rate cuts led the move higher.
“Our view is to expect a September rate cut and sectors that should benefit the most include home construction, small caps and banks,” said Larry Tentarelli, Chief Technical Strategist for Blue Chip Daily Trend Report.
The DowJones Industrial Average, which hit its first record closing high since December, was led by stocks in the industrial and financial sectors. Construction equipment maker Caterpillar (CAT) and investment bank Goldman Sachs (GS) each rose about 4%, as both companies are expected to benefit from the stimulative effects of lower interest rates. Capital-intensive construction projects should pick up as borrowing costs decline, all else equal. Lower interest rates should also stimulate activity in capital markets, from which Goldman can expect to collect higher fees.
The S&P 500 was similarly led by companies that will benefit from increased industrial and residential construction activity. Shares of construction equipment supplier Builders FirstSource (BLDR) jumped 8% and flooring supplier Mohawk Industries (MHK) added 7% on Friday.
Elevated interest rates have kept the U.S. housing market in a deep freeze for much of the last three years. Most new home buyers are priced out of the market by sky-high prices and the highest borrowing costs in more than a decade. Meanwhile, existing homeowners, many of whom locked in rock-bottom mortgage rates during the pandemic, have been reluctant to sell. That’s depressed homebuying and renovation activity.
Shares of homebuilders soared in anticipation of a home-buying rebound. Pultegroup (PHM), D.R. Horton (DHI), and Lennar (LEN) each rose more than 5%.
Small-cap stocks are also expected to benefit from lower rates. Smaller companies are more likely to hold floating-rate debt than larger competitors, making their margins more susceptible to compression when interest rates increase. For the same reason, they benefit more when rates decrease.
According to Bank of America equities analyst Jill Carey Hall, history suggests that small-cap stocks outperform large caps most when rate cuts coincide with a recession. “Performance has been more mixed in non-recessionary cutting cycles,” Hall wrote in a note on Wednesday.
However, small caps today are more sensitive to interest rates and face more refinancing risk than they have historically, according to Hall. That means that, assuming economic conditions don’t deteriorate much further, small-cap stocks could respond especially well to forthcoming rate cuts.
–Colin Laidley
Nio Jumps on Optimism About SUV Challenge to Tesla
2 hr 56 min ago
Shares of Nio (NIO) soared Friday amid optimism about the unveiling this week of the Chinese EV maker’s new ES8, its SUV challenger to the Tesla (TSLA) Model Y L.
Nio said that the six- and seven-seat Executive Premium Edition versions of the ES8 would be priced starting at 416,800 Chinese yuan ($58,122), but would be much lower at 308,800 yuan ($43,062) for buyers who also sign up for the NIO Batter-as-a-Service (BaaS) battery subscription service. The cost for the Executive Signature Edition begins at 456,800 yuan ($63,700), or 348,800 yuan ($48,640) with the BaaS plan.
Nio noted that the new ES8 is the largest electric SUV made in China. It said the model “sets a new benchmark in the premium BEV segment and leads the way for large three-row SUVs to the all-electric era.” The official launch is set for late September.
U.S.-listed shares of Nio traded in negative territory much of the year, but excitement over the ES8 has sent shares soaring. The stock was up 16% in late trading Friday, after gaining 9% yesterday.
Nio shares have now gained nearly 50% in 2025 and are trading at their highest level since last October.
TradingView
–Bill McColl
Trump Says Intel Agrees to Sell 10% Stake to Government
3 hr 28 min ago
Intel (INTC) stock surged Friday as President Donald Trump said the struggling chipmaker had agreed to allow the U.S. government to take a 10% stake.
At a press gathering in the Oval Office announcing the World Cup draw, Trump said of Intel, “They’ve agreed to do it, and I think it’s a great deal for them.”
Citing people familiar with the matter, Bloomberg reported earlier Friday that the Trump administration and Intel were set to announce details today of an agreement that would see the U.S. take a stake in the company. The news outlet said that although details weren’t clear, “Talks had focused on converting grants under the Chips and Science Act into an equity stake of about 10% for the government.”
Intel CEO Lip-Bu Tan leaving the White House on earlier this month following a meeting with President Trump.
Alex Wroblewski / Bloomberg / Getty Images
Bloomberg noted that the U.S. taking a stake in the once-storied chipmaker would mark a noteworthy departure from the practice of the government only stepping in during times of extreme stress. Intel declined to comment.
Intel shares were up roughly 7% in recent trading. With Friday’s gains, the stock has added a quarter of its value in 2025.
–Aaron Rennie
Reasons to Stay Bullish on AI Stocks
5 hr 1 min ago
Big tech stocks slid throughout most of the week amid a risk-off pivot, but some analysts say there are several structural reasons to remain bullish on tech giants.
The Roundhill Magnificent Seven ETF (MAGS) shed about 3.5% over the first four days of the week amid growing concerns about an AI bubble. (The ETF recouped most of its losses on Friday as stocks rallied on optimism about impending rate cuts.) A recent MIT study found that 95% of companies surveyed reported no material return on their AI investments. OpenAI’s Sam Altman late last week reportedly said he thought investors had become “overexcited” about AI.
Reports that Commerce Secretary Howard Lutnick expressed interest in the U.S. government converting all CHIPS Act grants into equity added to tech stock jitters.
But according to a Morgan Stanley analysis of 13-F filings, the largest active institutional money managers are more underweight mega-cap tech stocks than at any other point in the last 16 years. The mega caps followed by Morgan Stanley—Nvidia (NVDA), Microsoft (MSFT), Apple (AAPL), Amazon (AMZN), Alphabet (GOOGL), and Meta Platforms (META)—were under-owned relative to their S&P 500 weight by an average of 140 basis points at the end of the second quarter, a 24-basis-point increase from Q1.
Nvidia, which became the world’s first $4 trillion company in early July, is the most under-owned of the bunch; its weight in institutional portfolios is about 2.4 percentage points below its weight in the S&P 500. Microsoft (2.39%), Apple (1.66%), and Amazon (1.4%) are also significantly under-owned.
According to Morgan Stanley, “after adjusting for market cap and earnings beats, there is a statistically significant relationship between low active ownership relative to the S&P 500 and future stock performance.” That is, stocks that are being given short shrift by institutional investors tend to rise.
Retail investors also don’t appear to be worryingly optimistic. The latest American Association of Individual Investors sentiment survey showed bullish sentiment has declined by nearly 10 percentage points over the last four weekly readings. Over the same period, bearish sentiment among survey respondents increased to nearly 45% from 33%.
“While some near-term tech volatility is not surprising given the run-up in valuations, we advise investors against becoming overly defensive for several reasons,” wrote UBS analysts in a note Thursday.
First, tech earnings were very strong in the second quarter. The majority of tech companies beat sales and earnings estimates, and forward guidance, which tends to decline throughout the reporting season, held up. Cloud revenue grew by an average of more than 25% at the three largest providers.
In addition, internet and software companies are expected to continue to benefit from AI integrations. While AI revenue growth hasn’t quite kept up with investments, “we are seeing encouraging signs of progress as more companies embed AI into core products and services,” the analysts wrote.
–Colin Laidley
Traders Once Again Convinced of September Rate Cut
5 hr 57 min ago
The odds of a September rate cut jumped Friday after Federal Reserve Chair Jerome Powell struck a dovish tone in his speech at the central bank’s annual Jackson Hole Symposium.
According to federal funds futures trading data, traders now see a nearly 90% chance the Fed lowers rates by 25 basis points on Sept. 17, up from 75% yesterday. Traders had scaled back their expectations of a cut in the past week after disappointing inflation data.
“With policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance,” Powell said, signaling the Fed is open to resuming interest rate cuts after about nine months on hold.
Powell poses after delivering his highly anticipated speech with (from left to right) Bank of England Governor Andrew Bailey, ECB President Christine Lagarde, and Bank of Japan Governor Kazuo Ueda.
Natalie Behring / Getty Images
Treasury yields tumbled following Powell’s comments. The yield on the 10-year Treasury note, which influences the interest charged on all kinds of consumer loans, dropped as much as 9 basis points to 4.24%. The benchmark yield has seesawed between 4% and 4.5% for most of the year as investors, like the Fed, waited to see how President Trump’s tariff policies would affect the economy.
The Fed faces what Powell called “a challenging situation,” with tariffs threatening to raise prices, as evidenced by last week’s hot wholesale inflation report, and policymakers aren’t sure whether tariffs will cause a one-time price increase or sustained inflation.
At the same time, slowing growth and macroeconomic uncertainty appear to be weighing on job growth, increasing the risk that layoffs and unemployment rise. But the White House’s immigration policies have also decreased the supply of workers, keeping the labor market in “a curious kind of balance,” said Powell.
–Colin Laidley
Just Like That, Major Indexes on Track for Weekly Gains
7 hr 5 min ago
Stocks had been under pressure all week as investors braced for what Fed Chair Jerome Powell had to say about interest rates, leaving major indexes solidly in the red for the week coming into today’s session.
Now that Powell has indicated a rate cut is possible at the Fed’s next policy meeting in September, the S&P 500 and the Dow Jones Industrial Average are on track for record closing highs and set to post gains for the third consecutive week.
As of 11:00 a.m. ET, the Dow was up 1.6% for the week and the S&P 500 had gained 0.4%. The Nasdaq Composite was down 0.5% for the week, as tech stocks bore the brunt of the selling for much of the week.
The S&P 500 and Nasdaq Composite have each gained more than 10% since the start of 2025.
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Intuit Stock Sinks on Disappointing Results
8 hr 46 min ago
Intuit (INTU) shares tumbled in early trading after the maker of tax and accounting software gave weaker-than-anticipated guidance on soft demand for its MailChimp marketing platform and TurboTax tax filing program.
The firm that also owns QuickBooks and Credit Karma sees fiscal 2026 first-quarter GAAP earnings per share (EPS) of $1.19 to $1.26 and revenue growth of 14% to 15%. Analysts surveyed by Visible Alpha were looking for EPS of $1.31 and revenue 16.2% higher. In addition, Intuit’s full-year EPS projection of $15.49 to $15.69 was short of forecasts.
The outlook offset strong fiscal 2025 fourth-quarter results. Intuit posted adjusted EPS of $2.75 on revenue that increased 20% year-over-year to $3.83 billion, with both beating estimates. CEO Sasan Goodarzi pointed to artificial intelligence for the gains, noting the use of the company’s “virtual team of AI agents and AI-enabled human experts.”
Intuit noted that revenue at its Global Business Solutions Group gained 18% to $3.0 billion and Online Ecosystem rose 21% to $2.2 billion. However, when MailChimp is excluded, those segments would have advanced 21% and 26%, respectively.
U.S. TurboTax units fell 2% to 39.2 million, which the company said was “due to yielding share with lower ARPR customers.” ARPR, or Average Revenue Per Return, refers to the money Intuit gets when a customer uses its tax software.
Intuit shares were down nearly 7% in recent trading, pacing decliners in the S&P 500. Heading into today’s session, the stock was up 11% year-to-date.
–Bill McColl
Nvidia Halts China Chip Production, Reports Say
9 hr 3 min ago
Nvidia (NVDA) reportedly has told suppliers to suspend production of its H20 chip, after Beijing asked local firms to avoid using the chip tailored for the Chinese market due to security concerns.
Citing unidentified sources, The Information reported that Nvidia has instructed Samsung Electronics and Amkor Technology to halt production of the H20 chip, which are less powerful than its latest semiconductors. Reuters separately reported that Nvidia had asked Foxconn to suspend work related to the H20 chips. Foxconn, Samsung, and Amkor didn’t immediately respond to requests for comment.
“We constantly manage our supply chain to address market conditions,” an Nvidia spokesperson told Investopedia.
Nvidia CEO Jensen Huang speaking at an event in Beijing last month.
Andrea Verdelli / Bloomberg / Getty Images
Last month, Nvidia and rival Advanced Micro Devices (AMD) were given approval from the Trump administration to resume sales of key AI chips to China, with the condition that they pay 15% of their chip revenue generated there to the U.S. government in exchange for the export licenses. Beijing reportedly has raised concerns that the Nvidia chips contained “backdoors,” allowing remote access to or control of the chips, a charge the tech firm has denied.
“As both governments recognize, the H20 is not a military product or for government infrastructure. China won’t rely on American chips for government operations, just like the U.S. government would not rely on chips from China,” the Nvidia spokesperson said. “However, allowing U.S. chips for beneficial commercial business use is good for everyone.”
The spokesperson added, “Cybersecurity is critically important to us. NVIDIA does not have ‘backdoors’ in our chips that would give anyone a remote way to access or control them. The market can use the H20 with confidence.”
China is a key market for Nvidia. The chipmaker said in May that it took a $4.5 billion charge in the first quarter due to export curbs on H20 chips to the Asian country.
Nvidia shares, which entered Friday up 30% this year, were down about 1% in premarket trading.
–Nisha Gopalan
Futures Point to Slightly Higher Open for Major Indexes
9 hr 3 min ago
Futures tied to the Dow Jones Industrial Average were up 0.3%.
Federal Reserve Chair Jerome Powell’s Friday speech showed the central bank was increasingly dovish, which can mean good news for small-cap stock performance, according to Tom Lee, head of research at Fundstrat. “The Fed acknowledging that the risks now are tilted to the labor market to be softening … especially because they don’t think that tight labor markets are going to create inflation, that’s a very good sign,” Lee said on CNBC’s “Squawk on the Street” Friday morning. “I think it means we have a dovish Fed again,” Lee added. “That’s kind of a green light for small caps.” Lee’s comments refer to Powell’s Jackson Hole, Wyo., speech , where he indicated that interest rate cuts could be on the table but that the central bank was moving “carefully.” Powell also said that there appears to be a “shift” in the balance of risks between full employment and inflation. Stocks surged following Powell’s statements. Small caps outperformed, with the Russell 2000 jumping nearly 4% and beating the three major U.S. averages. .RUT 1D mountain Russell 2000, 1-day Some sectors within small caps may also have tailwinds on the horizon, Lee said. For one, he said financials should be helped by a decline in mortgage rates. Additionally, he said the closely followed ISM manufacturing index returning to above 50 would bode well for industrials. That move in the index would also bolster the argument that the market leadership will broaden. With Friday’s rally, the Russell 2000 is now up almost 6% year to date. That’s underperforming the broad S & P 500 , which has climbed nearly 10% in 2025.
Sanjay Beri, chief executive officer and founder of Netskope Inc., listens during a Bloomberg West television interview in San Francisco, California.
David Paul Morris | Bloomberg | Getty Images
Cloud security platform Netskope will go public on the Nasdaq under the ticker symbol “NTSK,” the company said in an initial public offering filing Friday.
The Santa Clara, California-based company said annual recurring revenue grew 33% to $707 million, while revenues jumped 31% to about $328 million in the first half of the year.
But Netskope isn’t profitable yet. The company recorded a $170 million net loss during the first half of the year. That narrowed from a $207 million loss a year ago.
Netskope joins an increasing number of technology companies adding momentum to the surge in IPO activity after high inflation and interest rates effectively killed the market.
So far this year, design software firm Figma more than tripled in its New York Stock Exchange debut, while crypto firm Circle soared 168% in its first trading day. CoreWeave has also popped since its IPO, while trading app eToro surged 29% in its May debut.
Netskope’s offering also coincides with a busy period for cybersecurity deals.
The year’s two biggest technology deals include Alphabet’s $32 billion acquisition of Wiz and Palo Alto Networks‘ ambitious plan to buy Israeli identity security company CyberArk for $25 billion.
Founded in 2012, Netskope made a name for itself in its early years in the cloud access security broker space. The company lists Palo Alto Networks, Cisco, Zscaler, Broadcom and Fortinet as its major competitors.
Netskope’s biggest backers include Accel, Lightspeed Ventures and Iconiq, which recently benefited from Figma’s stellar debut.
Morgan Stanley and JPMorgan are leading the offering. Netskope listed 13 other Wall Street banks as underwriters.
Oil rose after Federal Reserve Chair Jerome Powell signaled openness to an interest rate cut in September, countering an increasingly bearish supply outlook.
West Texas Intermediate edged higher to settle above $63 a barrel, while Brent settled near $68 after Powell’s highly anticipated prepared remarks were more dovish than some investors anticipated.
