Morning wrap (06.08.2025)

Wall Street closed with losses yesterday after a weaker-than-expected ISM services reading, which showed mounting price pressures (S&P 500: -0.5%, DJIA: -0.15%, Nasdaq: -0.65%). The small-cap Russell 2000 was an exception (+0.6%).

Futures for U.S. and European indices are currently trading in the green (US100: +0.3%, US500: +0.25%, EU50: +0.2%).

President Trump is expected to nominate a new member to the Fed Board of Governors by the end of this week to replace Adriana Kugler, who resigned last week citing personal reasons. Trump is to decide whether the new member will serve permanently or only until the end of Kugler’s term, which expires in January.

Additionally, Trump announced that the search for a new Fed Chair is ongoing. The shortlist reportedly includes four candidates: “two Kevins [referring to Hassett and Warsh] and two other people.” Treasury Secretary Scott Bessent is reportedly not seeking the nomination.

Tariffs on pharmaceuticals and semiconductors are expected to be announced “in a week or so,” Trump said in an interview with CNBC.

Advanced Micro Devices (AMD.US) is down over 6% in after-hours trading following its Q2 2025 earnings report. Revenue rose 32% YoY, exceeding consensus estimates, mainly due to strong gaming segment performance, although other key areas (like data centers) fell short of expectations. EPS came in at $0.48 (forecast: $0.49). Despite better-than-expected guidance for Q3, uncertainty surrounding the Chinese market is weighing on the stock.

Super Micro Computer (SMCI.US) is also sliding after earnings (-17%). EPS came in at $0.41 (expected: $0.44), and forward guidance was lowered further to $0.40–$0.52 (expected: $0.59).

In the Asia-Pacific region, optimism is prevailing, supported by the visit of a Japanese trade negotiator to Washington. Ryosei Akazawa is working to finalize a deal to reduce tariffs on Japanese cars. Markets are trading in the green: JP225 (+0.6%), AU200.cash (+0.7%), HK.cash (+0.3%), and CHN.cash (+0.15%).

New Zealand’s unemployment rate rose in Q2 less than expected to 5.2% (forecast: 5.3%, previous: 5.1%). Employment declined in line with expectations by 0.1% quarter-over-quarter, while wages increased by 0.6% q/q.

In the forex market, the most volatility is seen in the New Zealand dollar, which is strengthening against major currencies following the labor market data (NZDUSD: +0.3%, EURNZD: -0.3%). The Australian dollar is also gaining (AUDUSD: +0.2%). The dollar index is seeing a slight pullback (USDIDX: -0.05%). The yen, franc and pound are currently posting marginal gains against the USD (0.01–0.06%), while EURUSD is flat at 1.157.

Gold is down 0.25% to $3,372 per ounce, while silver is flat at $37.81 per ounce. Brent and WTI crude oil are both up around 0.6%, while NATGAS futures are down 1.2%.

Major cryptocurrencies are rising: Bitcoin is up 0.6% to $114,400, Ethereum is up 2.3% to $3,656.