Gold Shines as Stocks Stumble

Broad Decline – The Dow fell 249 points, the S&P 500 lost 0.7%, and the Nasdaq dropped 0.8% as risk appetite faded quickly after the long weekend.

AI Weakness – Nvidia slid again, showing how sensitive AI-driven names have become to rising yields and doubts about the durability of investor enthusiasm.

Defensive Strength – Gold miners surged and Pepsi gained more than 1% after Elliott’s $4B activist stake fueled hopes of shareholder-friendly changes.

Yield Jump – Treasury yields climbed sharply alongside global debt concerns, intensifying pressure on growth stocks and rate-sensitive sectors.

Cut Odds – Despite sticky PCE data, futures markets still priced a 91% chance of a September cut, highlighting investor conviction that the Fed will move.

Credibility Risk – Reports that Trump tried to fire a Fed governor rattled confidence, raising new fears about the central bank’s independence.

Legal Clash – An appeals court ruled that most of Trump’s tariffs were illegal, forcing the White House to push the fight to the Supreme Court.

Corporate Fog – Analysts warned the ruling adds uncertainty for companies planning supply chains, as the decision leaves current levies intact but raises questions about future trade policy.

Inflation Edge – Since importers pay most of the costs, tariffs are likely to keep upward pressure on U.S. consumer prices, complicating the Fed’s path to easing.

Bitcoin Rebound – Bitcoin climbed back above $111K as expectations for Fed easing and a weaker dollar sparked a wave of relief buying.

Corporate Buying – Strategy (formerly MicroStrategy) added over 4,000 BTC for $450M, bringing its total holdings to more than 636,000 coins worth around $70B.

Token Volatility – The Trump-linked WLFI token dipped in its debut, reflecting investor caution toward politically branded crypto projects.

Systematic Trim – UBS warned that commodity trading advisers could dump $80–90B of equities if stress escalates, with European markets most vulnerable.

AI Skepticism – Raymond James noted that enthusiasm for AI stocks has cooled, as investors reassess growth assumptions amid underwhelming model rollouts.

Cycle Case – Morgan Stanley argued that Fed cuts could kickstart an “early-cycle” phase, with stronger earnings breadth supporting broader equity gains.

Air Reveal – Evercore said the iPhone 17 Air will be Apple’s thinnest model yet, a move that could reinvigorate demand after years of incremental upgrades.

Chip Divide – Apple will separate performance tiers more clearly, with the Base and Air on the A19 chip and Pro models running the faster A19 Pro.

Future Path – The company’s roadmap points to a foldable phone by 2026 and a curved-glass anniversary edition in 2027, extending its innovation cycle.

Defensive Hedge – $TLT ( ▼ 0.09% ) or $GLD ( ▲ 0.58% ) can help protect portfolios from rising yields and political uncertainty around the Fed.

Tech Balance – Trim stretched AI names and offset risk by adding steady consumer staples like $PEP ( ▲ 0.37% ) with activist upside.

Crypto Entry – Bitcoin’s bounce above $111K offers a tactical dip-buying opportunity for long-term holders.

Housing Watch – Builders like $LEN ( ▲ 1.63% ) and $DHI ( ▲ 1.33% ) could benefit if federal housing policy momentum turns into real action.

Metals Play – Silver breaking above $40 and platinum near decade highs highlight ongoing momentum in industrial metals.