SINGAPORE (Reuters) -Stocks were muted, the dollar steadied near five-week lows and gold climbed to record highs on Tuesday, as investors awaited economic data this week that could reinforce expectations for a Federal Reserve rate cut in September.
Markets widely expect the Fed to lower interest rates later this month, pricing in an 89% chance of a 25 basis point cut, but data this week will help investors gauge whether the central bank could perhaps lean toward a jumbo cut.
The focus will be on Friday’s U.S. nonfarm payrolls report, which will be preceded by data on job openings and private payrolls, providing investors and the Fed a clearer picture of the labour market that has become the centre of policy debate.
“While an outsized 50 bps cut in September is not the base case expectation currently, it cannot be ruled out altogether if the August jobs data shows exceptional weakness,” said Vasu Menon, managing director of investment strategy at OCBC Bank.
The U.S. inflation report for August, scheduled to be released on September 11, a week before the Fed’s policy meeting, will play a crucial role in determining the central bank’s next steps.
The prospect of lower borrowing costs has kept Wall Street near record highs, while stocks in other regions have also gained in recent weeks. On Tuesday, MSCI’s broadest index of Asia-Pacific shares outside Japan was flat, highlighting opportunities for indices trading in volatile environments.
Nasdaq futures fell 0.1% while European futures eased 0.07%. U.S. markets were closed on Monday for a holiday leaving few cues for Asian markets.
“It is all about gauging whether the Fed remains ahead of a possible slowdown in the U.S. economy, or if it’s behind the curve,” said Kyle Rodda, a senior financial market analyst at Capital . com in Melbourne.
“If it seems like the U.S. economy is accelerating off the cliff, it’s going to raise fears that the Fed has been too slow to cut rates. If the deterioration is modest, it will support the case for rate cuts while also easing fears of a rapid deterioration in economic activity.”
China stocks have been on a tear recently buoyed by AI enthusiasm but fell on Tuesday as investors locked in profits following the sharp rally.
The blue-chip CSI300 index fell 0.9% after hitting a three-year high for the third straight session earlier on Tuesday. Hong Kong’s Hang Seng index eased 0.6% after surging 2% on Monday.
In currencies, the dollar clawed back some of its losses ahead of the European open. The euro fell 0.16% at $1.16925, while sterling was at $1.35264, down 0.17%, underscoring the relevance of forex trading strategies for market participants.
The U.S. Government Just Took a 9% Stake in Intel. Here’s Why That’s Both Bad and Good News For Shareholders.
Billy Duberstein, The Motley Fool
Tue, September 2, 2025 at 6:30 AM GMT+5:30 9 min read
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Key Points
On Aug. 22, the government announced it was converting Intel’s CHIPS Act grants into an equity stake.
Shareholders will be diluted about 8.9%, and over 10% when factoring another $2 billion investment by Softbank.
Despite the dilution, the stock went up on the news and there may be a very good reason for it.
10 stocks we like better than Intel ›
On Friday, Aug. 22, the Trump administration announced that the U.S. government would be converting $8.87 billion in CHIPS Act grant money that had been awarded to Intel (NASDAQ: INTC) into equity in the company. The government will receive just over 433 million shares at $20.47, good for about 8.85% of Intel when factoring in another recent investment by Japanese tech giant Softbank (OTC: SFTB.Y).
Needless to say, it’s unusual for the U.S. government to take a stake in a major company; it’s the type of thing one may find common in other countries, but typically not in the USA, the center of “free market capitalism.”
Leaving out the philosophical issue of how much government should be involved in the private sector, is the deal a good one for Intel shareholders?
The Bad
“Free” money turned out not to be so free
While some have posited the government is throwing Intel a “lifeline,” Intel was already supposed to receive this money without having to offer any shares in return. CHIPS Act grants were essentially subsidies to be paid out upon the completion of certain construction milestones for U.S.-based manufacturing fabs.
While Intel had only completed part of that buildout and other parts were still up in the air, the fact remains that CHIPS Act grants were supposed to be subsidies for projects Intel was likely to execute at some point. However, language in Intel’s recent quarterly report suggested the Trump administration might not pay the funds out as prescribed by law, even as Intel is currently struggling with cash flow.
While we don’t really know the dynamics behind the negotiations, we do know that at the end, money Intel was supposed to receive in return for its chip buildout had been converted to equity after the fact, flouting the CHIPS Act as it was intended. That legally dubious maneuver diluted shareholders who weren’t expecting it, which really isn’t a great precedent.
U.S. involvement may be a risk to international sales
In the “risks” section to the filing, Intel noted that the government’s stake could put some of Intel’s overseas sales at risk. That could be significant, as 76% of all Intel sales were in international markets, according to the filing.
MicroStrategy could join the S&P 500 as early as Friday
Anand Sinha
Tue, September 2, 2025 at 12:23 AM GMT+5:30 3 min read
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The world’s largest Bitcoin treasury firm, Strategy (Nasdaq: MSTR), formerly MicroStrategy, could join the S&P 500 list as early as this Friday, the popular Bitcoin investor Lark Davis said on Sep. 1.
Davis added that the move will trigger billions in boomer money, i.e., funds from older investors, to flow into MSTR and Bitcoin.
Related: What is Crypto? Cryptocurrency explained
Led by executive chairman and co-founder Michael Saylor, Strategy holds 632,457 BTC worth $69 billion on its balance sheet.
MicroStrategy’s S&P 500 debut could be a big win for crypto
The S&P 500 Index is a list of 500 of the largest public companies in the U.S. For a company to be included in the list, it should meet the following criteria:
- Based in the U.S.
- At least 12 months of trading history on a major U.S. exchange
- Market cap above $22.7 billion
- Minimum 50% of shares should be public
- Monthly trading volume of more than 250,000 shares for six months
- Latest quarter has positive earnings
- Last four quarters’ total earnings are positive
Wall Street veteran Josh Mandell, who nailed Bitcoin’s $84,000 prediction for March 2025, thinks Strategy has already been included in the S&P 500 and only an announcement is due.
Michael Saylor, co-founder and executive chairman of MicroStrategy Inc., speaks during the Bitcoin 2025 conference in Las Vegas, Nevada, US, on Thursday, May 29, 2025.
More News:
Millionaire trader who nailed Bitcoin’s $84K target says $444K is coming
Massive relief for MicroStrategy as troubling lawsuit ends
Jack Dorsey’s firm joins S&P 500 amid surprise offer for 4M merchants
MicroStrategy’s extraordinary earnings
MicroStrategy reported impressive earnings for the second quarter of 2025.
- $14 billion in operating income
- $10.0 billion in net income
- $32.60 of diluted earnings per share (EPS)
As the firm adopted new fair-value accounting standards in January 2025, it let it register unrealized gains on its Bitcoin holdings. The strategy also drove up profitability, sparking renewed interest in crypto investment across the broader crypto market.
If it happens, Strategy will be the third company after Brian Armstrong’s Coinbase (Nasdaq: COIN) — the largest crypto exchange in the U.S. — and Jack Dorsey’s Block, Inc. (NYSE: XYZ) — a Bitcoin-focused fintech firm — to join the much-coveted list.
FAQ on Strategy (formerly MicroStrategy)
What is Strategy (formerly MicroStrategy)?
Strategy, formerly known as MicroStrategy (Nasdaq: MSTR), is a U.S.-based business intelligence firm that has become the world’s largest corporate holder of Bitcoin. The company is led by co-founder and executive chairman Michael Saylor.
