Weekly financial markets roundup: August 31–September 6, 2024

This week witnessed several notable developments across financial markets. Nvidia experienced a significant market capitalization decline of nearly $300 billion, while major indices like the Dow Jones and Nasdaq faced downward pressure. The NFP release prompted a more cautious outlook on potential Fed rate cuts. Meanwhile, gold continued its ascent as investors sought safe-haven assets. In the cryptocurrency sphere, Binance made headlines with intriguing developments. 

Let's delve into the key events that shaped the financial landscape this week.

NVIDIA’s market capitalization decreased by a record $279 billion 📉

On Tuesday, September 3, 2024, NVIDIA's stock ($NVDA) price plummeted by 9.5%, marking the largest single-day market value decline for any U.S. company in history. According to Reuters, this dramatic drop resulted in a staggering $279 billion erasure from NVIDIA's market capitalization. 

Analysts are pointing to this event as a clear indication that investors are growing increasingly wary of the artificial intelligence technology boom. The catalyst for this massive sell-off appears to be NVIDIA's recent quarterly forecast, which fell short of the lofty expectations set by investors during the company's meteoric rise.

Apple set to unveil iPhone 16 and more at upcoming event 📱

Apple ($AAPL) enthusiasts can mark their calendars for September 9, as the tech giant prepares to reveal its highly anticipated 16th generation iPhone. The presentation is expected to showcase not only the new iPhone 16 but also introduce the next iteration of the Apple Watch - potentially dubbed the Series 10 or Apple Watch X — along with an updated line of AirPods.

Industry insiders suggest that select markets could see these products hit shelves as early as September 20.

As anticipation builds, Apple's stock performance has been noteworthy. Currently trading at $222 per share, the company has seen an impressive growth of over 30% in the past six months. Market analysts are bracing for potential stock volatility in the wake of the upcoming product launch, as investor reactions to the new lineup could significantly impact share prices.

Buy Gold for continued rally in 2025, Goldman Says 🥇

This week, Goldman Sachs made headlines in the precious metals market with a significant update to its gold price ($XAUUSD) forecast. The renowned investment bank has adjusted its outlook, now projecting that gold will reach the $2,700 mark by early 2025, a slight delay from their previous prediction of end-2024. This revised timeline is primarily attributed to anticipated interest rate cuts by the U.S. Federal Reserve.

As of September 6, 2024, gold is trading at $2,520 per ounce, indicating that Goldman Sachs foresees approximately 7% further upside in the coming months.

Intel projects substantial revenue from contract chip manufacturing by 2027 💻

In a conference call with investors on Wednesday, September 4, 2024, Intel ($INTC) CFO David Zinsner revealed the company's optimistic outlook for its contract chip manufacturing business. Zinsner stated that this segment is expected to generate "significant" revenue by 2027, with initial returns anticipated as early as 2026. The tech giant is currently in talks with 12 potential customers and plans to focus on the more advanced 18A production process, moving away from the 20A technology.

US Dollar remains under pressure below 101.00 💵

The US Dollar Index, which measures the Greenback against a basket of major currencies, extended its decline for the third consecutive day, dropping below the 101.00 mark to reach its lowest level in over a week. This downward trend, which began near the 102.00 level, was largely driven by market expectations of more aggressive Federal Reserve rate cuts, keeping US bond yields suppressed and exerting pressure on the dollar. The release of the US Non-Farm Payrolls (NFP) report, a key economic indicator, further influenced the dollar's position. 

Consequently, the $EURUSD pair saw notable gains, reflecting the dollar's broader weakness against major currencies.

Summary 📊

The upcoming week promises to be equally eventful for financial markets, with several critical events on the horizon. The spotlight will be on the European Central Bank (ECB) as it prepares to announce its highly anticipated interest rate decision. Beyond the ECB meeting, investors should be prepared for a series of important economic data releases across major economies, which could trigger substantial market movements.

Don't miss out on these potential opportunities — trade the financial markets with nomo and stay ahead of the curve as these crucial economic events unfold.