US OPEN: Indices Rebound as Investors Eye First 2025 Fed Rate Cut

• Wall Street stock indices are rising in the first minutes of trading as investor confidence in a Fed rate cut in September has grown.

• Donald Trump extends the suspension of high tariffs on China for another 90 days.

• China orders companies to halt orders for Nvidia's H20 chips due to security concerns.

• Shares of cannabis-related companies saw significant gains following Trump's announcement that marijuana would likely be reclassified as a drug.

Investors' attention today was primarily focused on the release of the US CPI inflation data. The headline reading came in slightly below expectations at 2.7% year-on-year, while core inflation was higher at 3.1% year-on-year. However, this reading has not dampened expectations for Fed rate cuts, despite the persistent and high core inflation. The market is currently pricing in a Fed rate cut at the September meeting with about 90% certainty.

In Tuesday's pre-market trading, the US market saw significant share price movements among technology companies and cannabis producers. AST SpaceMobile stood out, gaining about 10% on the back of ambitious plans for satellite development and a strong sales outlook. Swiss company ON also saw a notable increase, gaining market share against Nike. Among the largest companies, Intel is worth highlighting, as it gained over 3%, reflecting positive comments from a meeting with the company's CEO and expectations for future development, especially in semiconductors and future technologies.

US500 futures broke through the key resistance level of 6420 points at the time of the US CPI report's release. The H1 chart shows a continuation of the uptrend and the formation of a new, higher peak. Source: xStation5

Company News

• AST SpaceMobile (ASTS.US) gained on news of plans to launch 45-60 satellites in the coming years and additional contracts in the early development phase, which aligns with the growing interest in space technology. The company's stock opened with a gain of about 10%.

• On Holding (ONON.US) started strong after increasing its sales outlook for the entire fiscal year. The Swiss sportswear manufacturer raised its full-year financial forecasts, citing strong growth in its direct-to-consumer channel. It's worth noting that the Swiss footwear and apparel company is less exposed to tariffs, as 90% of its production takes place in Vietnam. The company's stock opened with a 15% gain.

• Intel (INTC.US) is up at the start of trading on the New York Stock Exchange. This is a result of positive discussions held between the company's CEO and US President Donald Trump. In just a few days, the situation surrounding Intel has changed significantly, from sharp criticism and public calls for the CEO's resignation to more conciliatory words and even appreciation for the company's past achievements. The easing of tensions between politics and business is also translating into improved investor sentiment. The company's stock opened with a gain of almost 3.5%.

• Starbucks (SBUX.US) is up at the start of the session following an improved rating from Baird, which suggests the company may outperform the market. It's worth remembering that Starbucks is the largest coffee shop chain in the US, and in late July, it came under pressure due to the announcement of a 50% tariff on Brazil, the largest coffee supplier to the US. The company's stock is up 1.3%.