RBNZ ready to cut. US tech stocks step back.
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Why are US equities showing modest moves while tech stocks face pressure?
US equity's cool and modest moves across the board really with no news over Ukraine and not a lot of data from anywhere really. But we have seen big moves from chipmakers today and ahead is the RBNZ to cut and day two of the economic round table in Canberra as well. It's Wednesday, it's the twentieth of August 2025. It's the morning call from NAV. Good morning. Well, it's not been a great session for US equities. The Nasdaq is down one and a half percent, not point six percent off the SP, and the Dow crawling into the green just as it crosses the finish line at the New York close. Whereas European stocks are higher, Euros stocks fifty up naught point nine percent, half a percent for the DAX, one point two percent for the cat card, and naught point four percent for the FTSE one hundred, all at the close today.
A slight increase in the US dollar this morning. Morning, very slight on the DXY, but a quarter percent rise in the yen and n point six percent fall in the Aussie dollar, almost down to sixty four point five US cents. The Canadian dollar is down nort four percent as well, but much smaller moves happening in Europe. And ten year treasuries are down four basis points, down five in Canada, but down just one in Germany and France, and no move at all on the day for the UK, whereas Aussie ten years that were up six basis points yesterday, up to four point three two percent, and now a couple of basis points higher than that on futures this morning. And here is Nabs Ray Atrill. Um Yeah, no big moves really on the markets.
But I mean what there has been seems to have been in the tech sector. So uh the the Nasdaq uh down quite a bit, uh and a a big part of that is Nvidia down three point two percent today. Um and yet we had reports earlier on that on C N B C that they're working on a new chip for China that's more advanced than its current product. But I think maybe this is part of the problem. President Trump has said um that well Scott Beston actually said that if they're gonna sell d anything new to China with this fifteen percent tax on it, uh, then they'll need a license for the new chip. So maybe that's what's damaged the share price a bit.
Yeah, morning Phil. Um well, as you know, we're not um stock market experts.
How is Nvidia’s China chip licensing issue affecting its share price?
We'd like to pretend we know something about currencies and interest rate markets. So uh quite what the uh quite what the the rationale is for the selling. But uh you know, I'm not quite sure. I also noticed that another um AI darling, um Palantir, which is a software analytics company, is off um over nine percent today. Um, you know, even the smaller market cap anyway. There's some uh reading around that the the the press is the the press is full of uh a sell recommendation or a short seller. Someone called Citron Research, whoever they are. Presumably they're there to there to spot lemons in the market. But um yeah, that does seem to be a general sort of oh AI stocks look to have got a little bit expensive.
Maybe uh maybe it's time to take a few chips off the table, pun intended. But um so you know, so who knows? But as you say, that headline from uh from Scott Bessant about saying that uh 'cause obviously you'd just wind back a week or so when uh you know NVIDIA was granted effectively, you know, the ability to to sell um chips to China but in return for a fifteen percent of the revenue ditto some other um you know hyper. profile I IT companies. So the fact that he's saying, yeah, but you're still going to need a license, you know, maybe that has uh has just uh checked some of the enthusiasm, if you like. But um anyway, I think the bottom line is that we've definitely got, they say the tech sector you know is off um you know double what we've got for the S P or the Russell 2000.
So it's not really a a stock rotation. We've still got you know the the broad markets you know a little bit lower and it does seem to be a sort of classic Classic, you know, it's a bit of a risk-off night, and that does seem to have supported the US Treasury market, where we've got yields um lower across the curve, sort of one and a half to two basis points at the two year, you know, three to four basis points at the ten year, and the US dollar is exhibiting some pretty sort of classic um you know safe haven uh support, I would argue, one exception there being dollar yen, which is still showing that um you know high sense.
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Chapters
8 chapters
1
Why are US equities showing modest moves while tech stocks face pressure?
0:01–2:05
2
How is Nvidia’s China chip licensing issue affecting its share price?
2:05–4:12
3
What are the implications of the Bank of England’s likely hold on rates after today’s CPI?
4:12–6:26
4
How do the upcoming RBNZ rate cut and new forecasts shape the NZ market?
6:26–8:28
5
Why is the market pricing multiple cuts for the Fed despite mixed data?
8:28–10:37
6
What does the latest Canadian CPI data suggest about future rate moves?
10:37–13:04
7
How are Australian consumer confidence and the Westpac survey influencing expectations?
13:04–15:38
8
What are the key takeaways from today’s economic round‑table and upcoming CPI releases?
15:38–17:02