US Stock Market Outlook: Interest Rate Expectations, Nvidia's AI Chip in China, Gold Surge Potential

Written by Michael A. Johnson, Lead Editor & Market Strategist

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US Employment Data and Market Reactions

On Thursday morning, the ADP employment report indicated that the US added 54,000 jobs in August, falling short of the expected 65,000. Additionally, initial jobless claims for the week ending August 30 rose to 237,000, above the anticipated 230,000.

Market Performance

US stock futures showed little change, with the Nasdaq futures up by 0.26%.

Tech Stocks: Amazon rose over 2%, and Meta gained nearly 2%, while Salesforce dropped more than 7%.
Chinese Stocks: Most pre-market Chinese stocks fell, with Alibaba and Xpeng down over 2%, and NIO nearly 4% lower.
Nuclear Stocks: Many nuclear energy stocks strengthened, with SMR up over 3% and NNE up over 2%.

Nvidia's AI Chip Plans

Nvidia plans to launch a new AI chip in the Chinese market, potentially priced at twice that of its H20 chip, pending US government approval. The new chip, tentatively named B30A, is based on the Blackwell architecture. Demand for Nvidia's chips remains strong among Chinese tech giants despite competitive pressures.

Apple Develops AI Search Tool

Apple is developing an AI web search tool to compete with OpenAI, set to launch next year. This new system, internally called "World Knowledge Answers," will be integrated into Siri and may also be included in Safari and Spotlight.

T. Rowe Price and Goldman Sachs Partnership

T. Rowe Price shares surged over 6% pre-market after Goldman Sachs announced a strategic partnership to invest $1 billion in T. Rowe Price stock.

Earnings Reports

Meta: Pre-market shares rose over 1% as the company plans to update its annual earnings guidance.
Sanofi: Shares fell over 8% after disappointing data from a clinical trial.
Figma: Shares dropped over 15% despite a 41% year-on-year revenue increase.
Salesforce: Shares fell over 7% after slightly lower-than-expected revenue guidance for Q3.

Economic Indicators

The Challenger report revealed that US companies announced only 1,494 new jobs in August, the lowest since 2009, while layoffs surged to nearly 85,980, the highest for August since 2020.

Global Economic Outlook

Goldman Sachs warned that if the Federal Reserve's credibility is damaged, gold prices could soar to nearly $5,000 per ounce.

Upcoming Events

President Trump is set to host a dinner with tech leaders, including Mark Zuckerberg and Tim Cook, highlighting the evolving relationship between the administration and the tech industry.

Economic Data Releases

21:45: US August S&P Global Services PMI Final
22:00: US August ISM Non-Manufacturing PMI
22:30: US EIA Natural Gas Inventory for the week ending August 29

About the author

Michael A. Johnson

Michael A. Johnson, Ph.D. in Economics from Harvard University, brings 20 years of expertise in market forecasting and trading strategies. As a former chief economist at Morgan Stanley, he oversees Intellectia’s Top News section, delivering data-driven perspectives on global economic shifts.