US Tech Pledges $1.4T for AI as Labour Market Cools
Market Snapshot
- Equity Indices (Futures): S&P 500 at 6,514 (▲ +0.20%), NASDAQ 100 at 23,799 (▲ +0.55%), Dow Futures (▼ -0.18%), FTSE 100 at 9,243 (▲ +0.16%).
- Cryptocurrencies: Bitcoin (BTC) at $112,394 (▲ +1.46%), Ethereum (ETH) at $4,422 (▲ +2.83%), XRP at $2.85 (▲ +1.80%).
- Commodities & Bonds: 10-Year US Treasury Yield at 4.157% (▼ -0.10%), WTI Oil at $63.48 (▼ -0.42%), Gold at $3,549 (▲ +0.06%).
Trump Secures $1.4 Trillion in Tech Investment Pledges
President Trump hosted a meeting with leading technology executives, securing pledges for over $1.4 trillion in domestic investments aimed at bolstering US dominance in artificial intelligence. During the event, Meta and Apple each committed to $600 billion in US-based spending. Google pledged $250 billion over two years, while Microsoft confirmed annual investments between $75–$80 billion. Attendees included OpenAI’s Sam Altman, Google co-founder Sergey Brin, and Microsoft co-founder Bill Gates. Notably, Tesla CEO Elon Musk did not attend, sending a representative instead.
The administration promised streamlined energy permitting to support the massive infrastructure required for AI development. This influx of capital is expected to have significant effects on the construction, energy, and semiconductor industries as the focus shifts towards domestic AI infrastructure.
Semiconductor Tariffs Planned
President Trump confirmed his intention to impose “fairly substantial” tariffs on semiconductor imports from companies that do not invest in US production. He indicated the policy would be implemented “very shortly,” potentially within weeks. However, exemptions will be granted to companies with significant domestic manufacturing commitments. Firms such as Apple, TSMC, Samsung, and SK Hynix, which have already pledged substantial investments in the US, are expected to be spared. The tariffs, potentially as high as 100-300%, are being enabled through Section 232 national security investigations.
US Labour Market Slowdown Fuels Rate Cut Hopes
Recent data indicates a cooling of the US labour market, strengthening expectations for a potential interest rate cut by the Federal Reserve. The ADP private payrolls report for August showed an increase of only 54,000 jobs, falling short of the 75,000 anticipated by economists and significantly lower than the revised 106,000 jobs added in July. Additionally, jobless claims for the week ending 30 August rose to 237,000.
Despite this evidence of a slowdown, US stock indexes closed higher on Thursday, with the S&P 500 achieving a new record. Market participants are now focused on the official nonfarm payrolls report, which is expected to show an addition of 75,000 jobs and for the unemployment rate to tick up to 4.3% from 4.2%. A weaker-than-expected result could increase the probability of a rate cut, while a surprisingly strong report might diminish those hopes.
Cryptocurrency Market Developments
Ethereum Whales Drive Rally
Large-scale investors, or “whales,” have significantly increased their Ethereum holdings, accumulating 5.54 million ETH (worth approximately $24.2 billion) since April. This sustained buying pressure from accounts holding between 1,000 and 100,000 ETH has coincided with the token's 200% price rally. The trend is bolstered by corporate treasuries, with companies like BitMine Immersion Technologies and SharpLink Gaming now holding a combined total of nearly $15.83 billion in ETH. This institutional demand has led to a supply squeeze, with the amount of ETH available on exchanges falling to a three-year low.
Tether Diversifies into Gold as Nasdaq Eyes Crypto Treasuries
Tether, the issuer of the USDT stablecoin, is expanding its investments into the gold supply chain, including mining and royalty firms. The strategy follows a reported $5.7 billion profit in the first half of 2025. This move aims to diversify its reserves beyond its $127 billion holdings in US Treasury bonds, providing tangible asset backing for its products as regulators in the EU and US prepare new stablecoin legislation.
Meanwhile, the Nasdaq stock exchange has announced new regulatory requirements for listed companies that hold significant amounts of cryptocurrency in their treasuries. The move follows the trend of firms like MicroStrategy adopting a crypto-centric balance sheet. The new rules prompted a fall in the share prices of other crypto treasury companies, including Bitmine and American Bitcoin.
Corporate News
Tesla Proposes New Musk Compensation Plan
Tesla's board is proposing a new compensation plan for CEO Elon Musk, asking shareholders for approval. The plan would grant Musk additional shares if the electric vehicle company achieves specific milestones over the next decade. According to analysis, the maximum payout could be worth nearly $1 trillion based on the current share count. The board stated the plan is designed to keep Musk “motivated and focused” on the company.
Broadcom Surges on AI Chip Demand
Chipmaker Broadcom reported strong quarterly earnings, reaffirming its significant role in the artificial intelligence sector. The company's AI-related revenue surged 63% in the third quarter and is projected to climb higher. Broadcom exceeded Wall Street's expectations and disclosed a deal with an unnamed customer for $10 billion worth of AI chips. Shares were up over 10% in premarket trading following the announcement.
Aptera Motors Files for Direct Listing on Nasdaq
Solar electric vehicle startup Aptera Motors has filed for a direct listing on the Nasdaq under the ticker “SEV.” The company, which is still pre-revenue, has taken nearly 50,000 reservations for its three-wheeled vehicle, representing $1.7 billion in potential future sales. A direct listing allows existing shareholders to sell their shares on the public market without the company raising new capital. However, Aptera faces challenges, including the need to secure an additional $195 million to reach its full-scale production target of 20,000 units per year.
Starbucks to Renovate 1,000 US Stores
Starbucks is planning to renovate approximately 1,000 of its US locations by the end of next year. Costing around $150,000 per store, the “uplifts” are intended to make the cafes feel more like a “third place” for customers. The changes will focus on adding more seating and other adjustments to create a cosier atmosphere, and are not expected to result in temporary closures.
Retail and Tech Stocks See Volatility
In retail, American Eagle (AEO) shares surged nearly 38% following a strong earnings report, with the company attributing its success to a popular advertising campaign. This follows recent positive results from other retailers like Abercrombie and Macy's.
In the software sector, shares of design platform Figma (FIG) fell almost 20% after its first earnings report as a public company. The drop reflects a common trend where newly public companies see their stock price decline after an initial public offering (IPO) surge.
Key Confirmation Hearings on Capitol Hill
Washington saw two significant hearings this week. Stephen Miran, President Trump's nominee for Federal Reserve Governor, appeared before the Senate Banking Committee. Miran stated that if confirmed, he would take an unpaid leave of absence from his current role as chair of the Council of Economic Advisors rather than fully resigning. Separately, Health and Human Services Secretary Robert F. Kennedy Jr. testified before senators regarding changes to immunisation policy and federal health agencies.
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