AI hype increases as Fed's hawkish stance and U.S.-Iran tensions stir markets

Huoxing Finance reports: On August 29, global markets experienced mixed sentiment this week. Federal Reserve Chair Powell signaled a hawkish tone at the Jackson Hole symposium, stating that underlying U.S. inflation trends have not shown “meaningful improvement,” and that if core inflation fails to return to 2% at a sufficient pace, the Fed “has more work to do.” Following his remarks, market expectations for a September rate hike rose sharply. The U.S. dollar index gained 0.85% for the week, gold fell over 3% in a single day and declined 3.24% for the week, while spot silver dropped 3.82% for the week. On the geopolitical front, prospects for U.S.-Iran negotiations remained volatile as the U.S. launched its “Economic Outcast” campaign against Iran and expanded sanctions. Meanwhile, Iran coordinated with Oman on reopening the Strait of Hormuz, with plans to establish a temporary shipping lane and conduct joint mine-clearing operations. However, full reopening of the strait remains contingent on Iran’s conditions, including the lifting of U.S. blockades and sanctions, the unfreezing of Iranian assets, and an end to Israeli hostilities in Lebanon. Simultaneously, Trump announced that the U.S. has gained “majority control” over Venezuela’s oil reserves exceeding 65 billion barrels. In oil markets, traders priced in expectations of restored Middle Eastern supply, leading to a notable decline in oil prices this week. AI trading intensified this week. NVIDIA released strong earnings, reporting second-quarter revenue of $96.2 billion, a 106% year-over-year increase, with data center revenue reaching $89 billion, up 117% year-over-year. The company forecast third-quarter revenue at $108 billion. The results spurred NVIDIA’s stock to surge 8.7% in a single day, adding approximately $442 billion in market value—equivalent to about RMB 3 trillion. OpenAI disclosed progress on its in-house AI inference chip, Jalapeño, planning deployment by the end of 2026, while continuing to ramp up investment in AI infrastructure. On macro policy, the U.S. Treasury’s expansion of its long-term Treasury buyback program sparked market debate over “fiscal dominance” and the Federal Reserve’s independence. Japan reportedly deployed a record monthly total of JPY 15.4 trillion in foreign exchange intervention. Domestically, multiple Chinese government agencies simultaneously rolled out real estate policies: the maximum term for personal housing loans was extended from 30 to 40 years, and new policies supporting the real estate sector’s development model were also implemented. Market attention also focused on Alibaba’s planned HK$80 billion offering to fund AI infrastructure and model development, alongside continued insider stock purchases by management. Apple unveiled its new Mac lineup powered by the first 2-nanometer M6 chip and announced its fall launch event for September 9, where the first foldable iPhone may be unveiled.