U.S. Payrolls Surprise to the Downside, Dimming Fed Hike Odds; Strait of Hormuz Reopening Outline Surfaces as AI Names Face Valuation Strain
AI Market Summary
Weaker U.S. July payrolls and downward revisions reduced near-term Fed hike odds, pressuring the dollar for a second week while boosting precious metals on lower real-rate expectations. Risk assets held firm with U.S. equities up. Separately, a provisional Hormuz reopening framework injected two-way oil volatility as de-escalation hopes competed with unresolved control disputes. AI-related earnings reactions and pricing shifts highlighted "high growth + high expectations" valuation sensitivity.
Impact level
● High
Affected assets
NCSIDXY2USD/USDT-0.35%
AI Insight · NCSIDXY2USD/USDTAI Insight
● Neutral
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Huo Xing Finance said Aug. 8 capped a week packed with global market catalysts. U.S. July nonfarm payrolls unexpectedly fell by 23,000, versus expectations for an 80,000 gain. Revisions to May and June also cut the combined total by 103,000.
The data reset rate expectations. Markets marked down the odds of a Federal Reserve hike in September to about 44% from roughly 58%. The U.S. dollar index posted a second straight weekly decline. Safe-haven flows and rising expectations for eventual rate cuts lifted precious metals: gold climbed more than 7% on the week and silver gained over 10%. All three major U.S. equity benchmarks ended the week higher.
In the Middle East, reports said Iran and Oman reached a provisional framework aimed at reopening the Strait of Hormuz. The arrangement would run for 60 days pending final approval by Iran. The U.S. and Iran remain at odds over how control of the strait would be handled.
Energy markets swung sharply. Oil prices initially dropped on hopes of de-escalation, then rebounded as supply risks resurfaced.
In corporate and sector headlines, Yushu Technology set its STAR Market IPO price at RMB 150.8 per share, implying an issuance market capitalization of about RMB 61 billion. Offline investors subscribed 2,618 times.
SpaceX's first earnings report since listing showed Q2 revenue of $7.8 billion, up 92% year over year. Its capital expenditures above $18 billion drew particular attention.
SanDisk and Western Digital both beat earnings expectations, but their shares sank on valuation pressure, a sign the AI storage space is shifting into a "high growth + high expectations" phase. DeepSeek also said it plans a significant increase in API pricing, signaling a move away from its low-cost strategy.
Global oil majors reported strong Q2 profit growth. Saudi Aramco posted a 44% year-over-year jump in net profit, while Donald Trump urged oil companies to cut gasoline prices.
On Wall Street, institutions are accelerating AI deployment for risk management as AI-driven cyberattack risks rise. Google DeepMind's core team is undergoing restructuring, and a legal dispute involving OpenAI and Apple over AI talent mobility has surfaced, further intensifying competition for AI talent.
