24 Aug 2026 — Daily Market Update

US stocks rebounded last Friday as stronger US services data and improving corporate earnings expectations eased recession concerns. However, Treasury yields remain elevated, oil prices continue to rise, and geopolitical risks around Iran are still keeping overall risk sentiment cautious.

S&P 500: +0.43% to 7,674.37

Dow Jones: +0.98% to 53,277.01

Nasdaq: +0.44% to 26,180.46

US 2Y Treasury: roughly unchanged at ~4.19%

US 10Y Treasury: +4bps to ~4.69%

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1) China steps up consumption support while AI and semiconductor earnings remain strong

* China’s Ministry of Finance further upgraded its consumer-loan interest subsidy programme, extending support through end-2026.

* Credit-card instalments are now included, with fiscal subsidies covering 1 percentage point of eligible interest costs.

* The policy scope has been broadened beyond selected consumption categories, reflecting a shift toward supporting household spending and “investing in people.”

* AI optical-module leader Zhongji Innolight reported 1H revenue of RMB41.78bn, up 182.5% YoY.

* Net profit surged 241.7% YoY to RMB13.65bn, helped by continued AI data-centre expansion and strong 800G/1.6T optical-module demand.

* Well-known investor Zhang Jianping became the company’s ninth-largest shareholder, further boosting market attention on the optical-connectivity theme.

* Chinese NAND producer Yangtze Memory’s STAR Market IPO application was accepted, with plans to raise RMB33bn for production upgrades and R&D.

Market impact: Positive for Chinese consumption, AI infrastructure, optical communication and semiconductor names as policy support and earnings momentum reinforce each other.

Positive counterpoint: China’s growth support is becoming less dependent on property and traditional infrastructure, while selected AI and semiconductor companies are increasingly delivering real earnings growth.

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2) US–Canada trade tensions escalate as both sides impose retaliatory tariffs

* The US and Canada failed to reach a trade agreement before the deadline.

* Washington accused Canada of rejecting improved market-access terms while continuing retaliatory measures against the US.

* The US subsequently imposed an additional 50% tariff on selected Canadian imports effective 22 August.

* Affected categories reportedly include steel, electronics, dairy products and apparel.

* Canadian Prime Minister Mark Carney announced the suspension of trade negotiations with the US.

* Canada then announced dollar-for-dollar retaliatory tariffs, which are due to take effect on 8 September.

* The dispute raises uncertainty over North American supply chains and the broader USMCA trading framework.

Market impact: Higher tariffs could raise production and consumer costs across North America, potentially adding to inflation pressure and weighing on industrial, auto and retail companies.

Positive counterpoint: The US and Canadian economies remain deeply integrated, giving both sides a strong incentive to restart negotiations and eventually reduce or exempt some of the tariffs.

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3) Anthropic reportedly targets a massive IPO at up to US$2tn valuation

* Claude developer Anthropic is reportedly discussing a potential IPO that could raise more than US$100bn.

* The offering could value the company at as much as US$2tn.

* If completed at that scale, it would rank among the largest IPOs in history.

* Anthropic has already raised substantial private capital and filed confidentially for an IPO earlier this year.

* The company is also arranging a large pre-IPO credit facility.

* Its revenue run-rate has reportedly risen sharply, highlighting strong enterprise demand for generative AI.

* The IPO filing may also highlight public concerns around AI-related job displacement, copyright, privacy, safety and broader social risks.

Market impact: A mega-sized AI IPO could absorb significant market liquidity and increase investor scrutiny over AI valuations, profitability and return on capital.

Positive counterpoint: If Anthropic can still raise capital at such a large valuation, it would be a strong signal that investor appetite for long-term AI growth remains very strong.

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4) Higher memory costs could push Nvidia server prices up, while new AI monetisation themes emerge

* Nvidia’s high-end AI server prices could reportedly rise by more than 15% from 2027 due to surging HBM and DRAM costs.

* Vera Rubin and Grace Blackwell systems could be among the platforms affected.

* Higher server costs would further raise AI infrastructure capex for hyperscalers such as Microsoft, Google, Amazon and Oracle.

* This could intensify investor questions around how quickly AI investment can be monetised.

* On the other hand, the ability to pass on higher costs also highlights Nvidia’s strong pricing power.

* Nvidia is increasingly expanding beyond GPUs through open-source AI models, software, networking and broader supply-chain integration.

* Tesla also confirmed a Cybercab event in Austin on 3 September, with investors watching Robotaxi commercialisation, regulation and production timelines.

Market impact: Higher AI infrastructure costs may renew concerns over excessive capex and pressure high-valuation tech stocks, especially if rates remain elevated.

Positive counterpoint: Rising server and memory prices also indicate that AI compute demand remains stronger than supply, while Nvidia and Tesla continue to build new monetisation opportunities beyond the current hardware cycle.

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What to Watch Today / This Week

* The US is expected to announce additional Iran-related economic sanctions, with markets watching for any impact on oil exports, shipping and inflation expectations.

* Attention will increasingly turn to Jackson Hole later this week for signals on the Fed’s September policy outlook.

* Nvidia’s earnings on Wednesday will be one of the biggest events of the week, with focus on AI GPU demand, Rubin, supply, margins and hyperscaler capex.

US Data

* Monday: relatively light macro calendar.

* Tuesday: Consumer Confidence, New Home Sales and housing-price data.

* Wednesday: PCE / Core PCE, Durable Goods Orders and revised Q2 GDP.

* Thursday: Initial Jobless Claims and trade-related data.

* Friday: Revised University of Michigan Consumer Sentiment, Chicago PMI and Jackson Hole.

Key Earnings

* PDD Holdings — Monday

* Nvidia — Wednesday

* Intuit

* Salesforce

* CrowdStrike

* Marvell — Thursday

Bottom line: This week’s key drivers are Treasury yields, oil prices, Nvidia earnings, PCE and Jackson Hole. The central market debate remains whether AI earnings and monetisation can continue to justify elevated capex and valuations despite high interest rates.