>>> CSX traveling sharply lower after announcing new intermodal agreements with

CSX traveling sharply lower after announcing new intermodal agreements with BNSF Railway, disappointing investors who were expecting a more transformative merger (34.51 -1.36)
  • Shares of railroad operator CSX (CSX) are notably weak today following the announcement of new intermodal service agreements with BNSF Railway, which disappointed investors expecting a more transformative merger.
  • Activist investor Ancora Holdings has been pushing CSX to pursue a merger with BNSF or Canadian Pacific Kansas City to counter competitive threats, such as the potential Union Pacific (UNP)-Norfolk Southern (NSC) merger.
  • The intermodal agreements, aimed at enhancing coast-to-coast freight connectivity, are incremental but fail to meet activist demands for a strategic overhaul or leadership changes, dampening investor sentiment.
  • Additionally, Federal Reserve Chair Jerome Powell's Jackson Hole speech signaling a potential rate cut has raised concerns about economic growth, further weighing on cyclical rail stocks like CSX.

>>> US Closing Market Summary: Markets surge on Fed Chair Powell's Jackson Hole

Closing Market Summary: Markets surge on Fed Chair Powell's Jackson Hole remarks

The stock market rallied today after Fed Chair Powell's speech at the Jackson Hole symposium bolstered the probability of a September rate cut, resulting in broad-based gains that largely made up for a previously challenging week.

The DJIA (+1.9%) soared past its record high levels, posting a new record intraday (45,757.84) and closing high (45,631.74). Meanwhile, the S&P 500 (+1.5%) came within three points of its own all-time high level before finishing just shy of its record close. The tech-heavy Nasdaq Composite (+1.8%) still has some ground to cover before it goes record hunting again due to losses incurred earlier in the week.

In particular, the market was enthused by Mr. Powell's line noting that "with policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance," which the market took as an open-mindedness to easing.

The probability of a 25-basis point rate cut at the September FOMC meeting now stands at 83.1%, up from 75.0% yesterday, according to the CME FedWatch tool.

It is worth noting that this probability did decrease somewhat from a probability in the low 90s earlier in the day, as there are still lingering inflation concerns that could stifle a rate cut.

Cleveland Fed President Beth Hammack (non-voting FOMC member) expressed a more hawkish view in a CNBC interview, in which she stressed that while she is open-minded heading into September, her focus remains on inflation, where she feels the Fed is still missing badly on its mandate.

However, this did little to thwart the stock market off its strong upward course.

Small-cap stocks, with their greater domestic focus and higher sensitivity to borrowing costs, performed exceptionally well.

The Russell 2000 advanced 3.8% today, making it the top performer among the major averages for the week after starting the session with a modest week-to-date loss.

Homebuilders also excelled with the prospect of a friendlier rate environment, with the iShares U.S. Home Construction ETF posting a 5.6% gain.

The S&P Mid Cap 400, for its part, added 2.7%.

The Invesco S&P 500 High Beta ETF added 3.3% today, reinforcing the market's strong risk-on sentiment.

While the Vanguard Mega Cap Growth ETF (+1.5%) performed more in line with the broader market, mega-cap gains were a welcome sight after a tough week that saw the mega-cap index finish with a 1.1% week-to-date loss.

Tesla (TSLA 340.02, +19.91, +6.22%) was a notable standout among the cohort, surging past its 200-day moving average (328.40) and helping the consumer discretionary sector (+3.2%) capture the widest gain today.

In total, ten S&P 500 sectors finished with gains, with the energy (+2.0%), communication services (+1.9%), materials (+1.7%), and financials (+1.7%) sectors among the best performers.

The PHLX Semiconductor Index advanced 2.7% after several choppy previous sessions, getting back to its unchanged level for the week.

Only the defensive consumer staples sector (-0.4%) saw a modest loss.

Breadth figures denote the scope of today's rally, with advancers outpacing decliners by a nearly 10-to-1 margin on the NYSE and a greater than 5-to-1 clip on the NASDAQ.

Today's rally reinforces investor optimism for potential policy easing and sets a positive tone as traders position for the final stretch of August.

U.S. Treasuries enjoyed a strong Friday outing that lifted the 10-year note and shorter tenors into positive territory for the week while the long bond added to this week's gain.

The 2-year note yield settled down ten basis points to 3.69%, the 10-year note yield settled down seven basis points to 4.26%, and the 30-year note yield settled down four basis points to 4.88%.

There was no economic data of note today.
  • Nasdaq Composite: +11.3% YTD
  • S&P 500: +10.0% YTD
  • DJIA: +7.3% YTD
  • Russell 2000: +5.9% YTD
  • S&P Mid Cap 400: + 4.3% YTD

>>> What to look at today - 22nd of August 2025

Caution lingered across markets ahead of Federal Reserve Chairman Jerome Powell’s speech with traders paring wagers on an imminent interest-rate cut. A gauge of the dollar held its gains from the prior session, spurred by upbeat US manufacturing data and hawkish comments from the Fed officials. Asian shares fluctuated between small gains and losses while futures for European and US stocks were little changed. Chinese shares stood out with a 1.2% jump, with technology among the best performers. Gold fell 0.3%. Nvidia Corp.’s shares slid about 1.9% on alternative trading system Blue Ocean after a report said the company instructed component suppliers to stop production related to the H20 AI chip. That helped lift chip stocks in China and Hong Kong. The S&P 500 fell for a fifth straight day as stronger US economic data and a more hawkish tone from Fed officials pushed money markets to price a 70% chance of a September rate cut, down from 90% a week ago. Focus now shifts to the Fed’s annual Jackson Hole symposium, where Powell speaks Friday at 10 a.m. New York time for clues on the policy outlook. Bond investors are heading into the speech largely expecting the Fed will indicate policymakers will start cutting interest rates next month. In recent years, Powell has used the occasion to make market-moving policy news, with investors zeroing in on whether the Fed chair pushes back — or not — on the current pricing for rate cuts.  The central bank has held interest rates steady this year, citing elevated uncertainty over the impact of tariffs on the economy. President Donald Trump, a frequent critic of the Fed, has demanded that Powell and his colleagues lower rates significantly, with some in the administration calling for an outsize half percentage point cut next month. Fed Bank of Cleveland chief Beth Hammack said she wouldn’t support easing if officials had to decide tomorrow. Other Fed officials speaking Wednesday and Thursday struck a similarly hawkish tone as Cleveland’s Hammack. Atlanta Fed President Raphael Bostic said he still sees just one rate cut this year as appropriate. Jeffrey Schmid, president of the Kansas City Fed, said inflation risk still outweighs risks to the labor market. Fed Chicago President Austan Goolsbee said while some recent inflation readings have come in better than expected, he hopes one “dangerous” data point is just a blip. While data showed an increase in jobless claims — adding to signs of a slowing labor market — the solid factory purchasing managers index made traders trim their bets on rate cuts. A gauge of manufacturing grew at the fastest pace since 2022. “The Fed is being put in a tough spot, with pressures to cut interest rates as inflation rises and the labor market decelerates — with both of those metrics moving in the opposite direction from the Fed’s dual mandate,” said Bret Kenwell, US investment analyst at eToro. Markets also need to consider the increasing likelihood that global growth will exceed expectations, bringing with it inflationary pressures that restrict central banks’ ability to cut rates. Meantime, the Justice Department signaled possible plans to investigate Fed Governor Lisa Cook, with a top official encouraging Powell to remove her from the board. Trump’s housing-finance chief, Bill Pulte, has called for a probe over mortgage agreements she allegedly made in 2021. Elsewhere, the pace of Japan’s consumer inflation stayed well above the Bank of Japan’s 2% target even as price growth moderated, supporting market speculation that the central bank will hike its benchmark interest rate again this year. In geopolitics, efforts to establish security guarantees for Ukraine as part of a US-led push to end Russia’s war are running into difficulties almost immediately. US After Hours INTU -5.5%, WDAY -3.2% lower on earnings; ZM +5.6%, ROST +2.3% higher on earnings.

Nikkei -0,08% Hang Seng +0.26% CSI +1.23% Shanghai +0.65% Shenzen +0.72%

Eur 1.1585 CNH 7.1878 CNY 7.1846 JPY 148.63 GBP 1.3393 CHF 0.8102 RUB 80.5107 TRY 41.0148 Crude 63.45 -0.03% Gold 3,382 -0.27% BTC 112,972 +0.54% ETH 4,277 +0.84%

SPX -0.03% Nasdaq -0.10% EuroStoxx -0.09% FTSE +0.02% Dax -0.10% SMI -0.03%

Macro :
- Trump Won’t Seek Equity From Chipmakers With US Investment Plans
- Vitol, Breakwall Capital JV Funds Inaugural Loan of $150M
- US Weighs Plan to Reallocate $2b in CHIPS Act Funds: Reuters

Keep an eye on :
- AI FP : Air Liquide to Buy DIG Airgas for Enterprise Value of EU2.85B
- AAPL US : Meta Poaches Apple AI Executive Even as It Plans Hiring Slowdown
- GOOGL US : OpenAI Is Challenging Google—While Using Its Search Data
- BAVA DC : Bavarian 2Q Revenue Beats Estimates; Outlook Range Narrowed
- COR PL : Corticeira Amorim Surges 5.8% as Cork Exempt from US Tariffs
- HTG LN : Hunting Expects Restructuring to Deliver ~$2m Annualized Savings
- Lactalis : Fonterra Agrees to $2.2 Billion Consumer Unit Sale to Lactalis
- META US : Meta Poaches Apple AI Executive Even as It Plans Hiring Slowdown
- META US : Meta Signs $10 Billion-Plus Cloud Deal With Google
- MONT BB : Montea Sees FY Dividend per Share EU3.90
- NOVOB DC : Novo Nordisk Has Won 44 Copycat Court Cases in US, Borsen Says
- NVDA US : Nvidia Urges Taiwan to Embrace Nuclear Power Ahead of Referendum
- NVDA US : Nvidia Asks Suppliers to Halt H20 Work, Information Says
- OPEN AI : OpenAI’s Chief People Officer Julia Villagra Leaving Co.: Rtrs
- RECSI NO : REC Silicon 2Q Ebitda $4.9M Vs. Loss $4.6M Q/Q
- SHLF NO : Shelf Drilling Get Contract Extension for Tenacious Jackup Rig
- SMG IPO : SMG Could Allow Zurich to Leap up the IPO Scoreboard: ECM Watch
- STLA US : Jeep Cherokee Resurrected as Hybrid SUV to Reverse Sales Slump
- SZU GY : Suedzucker Cuts FY Revenue Outlook on Segment Weakness
- Tennet : Germany Weighs Buying Minority Stake in Tennet Germany: FD
- UQA AV : Uniqa FY Pretax Profit Forecast Beats Estimates

>>> Europe : Brokers Upgrades & Downgrades - 22nd of August 2025

>>> Up
* Altria PT Raised to $72 from $65 at Stifel
* Aasen Sparebank Raised to Buy at Norne Securities; PT 136 kroner
* Grong Sparebank Raised to Buy at Norne Securities; PT 171 kroner
* Hensoldt Raised to Neutral at Citi; PT 88 euros
* RENK Group Raised to Neutral at Citi; PT 61 euros
* Sparebank 68 Grader Nord Raised to Buy at Norne Securities
* Ulta Beauty Raised to Overweight at Barclays; PT $589

>>> Down
* Alexandria Group Cut to Reduce at Inderes; PT 11 euros
* Coty PT Cut to $4 from $5 at Canaccord
* Coty Cut to Hold at Jefferies; PT $4
* CTS Eventim Cut to Neutral at Oddo BHF; PT 86 euros
* Fondia Cut to Accumulate at Inderes; PT 5.20 euros
* Gap Cut to Equal-Weight at Barclays; PT $19
* Spir Group Cut to Hold at ABG; PT 9 kroner

>>> Initiation
* GN Store Nord ADRs Rated New Outperform at BNPP Exane; PT $70

>>> Call

>>> TradeGate Pre-Market Indications

DAX:
  • Rheinmetall (RHM TH) +1.1%
MDAX:
  • RENK Group (R3NK TH) +2.5%
    • RENK Group Raised to Neutral at Citi; PT 61 euros
  • Hensoldt (HAG TH) +2.1%
    • Hensoldt Raised to Neutral at Citi; PT 88 euros
  • Delivery Hero (DHER TH) -1%
SDAX:
  • Suedzucker (SZU TH) -3.1%
    • Suedzucker Cuts FY Revenue Outlook on Segment Weakness

>>> Stoxx 600 Pre-Market Indications

  • RENK Group (R3NK TH) +2.3%
    • RENK Group Raised to Neutral at Citi; PT 61 euros
  • Hensoldt (HAG TH) +2.2%
    • Hensoldt Raised to Neutral at Citi; PT 88 euros
  • Rolls-Royce (RRU TH) +1.1%
  • Bavarian Nordic (BV3 TH) +1.1%
    • Bavarian 2Q Revenue Beats Estimates; Outlook Range Narrowed
  • Delivery Hero (DHER TH) -1%

The Information : Nvidia Orders Halt to H20 Production After China Directive Aga

Nvidia Orders Halt to H20 Production After China Directive Against Purchases

The Takeaway
Nvidia’s production halt on H20 chips signals that the chip giant’s hopes of maintaining its foothold in the Chinese market remain in limbo. A deal with the Trump administration allowing the sales was countered by a directive from the Chinese government to local tech companies not to buy Nvidia chips.

Nvidia has told some of its component suppliers to suspend production work related to the H20, its chip tailor-made for the Chinese market, according to two people with direct knowledge of the communications. The directive comes weeks after the Chinese government told local tech companies to stop buying the chips due to alleged security concerns, The Information previously reported.

The production halt signals that despite the Trump administration’s decision to allow Nvidia to resume selling the chips after a monthslong ban, the chip giant’s hopes of maintaining its foothold in the Chinese market remain in limbo—now because of the Chinese government’s policies. Chinese authorities fear Nvidia’s chips could contain backdoors that funnel sensitive data from China to the U.S., The Information previously reported. As a result, Chinese authorities are encouraging local companies to use Chinese-made AI chips, such as those sold by Huawei.

Nvidia sent its communications this week on the H20 to Arizona-based Amkor Technology and South Korea’s Samsung Electronics, according to the two people. Amkor handles the advanced packaging of Nvidia’s H20 chips, a process that involves combining multiple components, while Samsung supplies high-bandwidth memory chips for the H20.

In a statement, Nvidia said, “We constantly manage our supply chain to address market conditions.” It added that “allowing U.S. chips for beneficial commercial business use is good for everyone.”

Nvidia also denied that its chips have backdoors “that would give anyone a remote way to access or control them. The market can use the H20 with confidence.”

Amkor and Samsung didn’t respond to requests for comments.

Nvidia’s supplier directive highlights how the company is being squeezed by intensifying trade tensions between the U.S. and Chinese governments. In recent years the Biden administration clamped down on exports of advanced AI chips to China, choking off much of Nvidia’s business there. Between its fiscal 2022 and 2025 years, the share of Nvidia’s revenue coming from China has fallen from 26% to 13%.

Nvidia responded to U.S. export blocks by designing special chips for China that aren’t as powerful but this past spring, President Donald Trump blocked Nvidia from selling some of those China-tailored chips there.

Last month, Trump reversed that ban, in exchange for an agreement for the U.S. government to get a 15% cut of the resulting revenues. After Trump’s change of heart, Nvidia placed additional orders for high-bandwidth memory from Samsung and transferred semi-finished chips from its manufacturing partner, Taiwan Semiconductor Manufacturing Co., to Amkor for packaging.

Trump’s reversal had sparked a buying spree from Chinese tech firms, who ordered a total of 700,000 H20 in the subsequent weeks, The Information reported last week.

Semi-finished chips—the individual processor dies ready for the final packaging step—are now piling up at Amkor, creating uncertainty about their future. Samsung also received notices from Nvidia that H20 chip production has been suspended, said one of the two people cited above.

>>> US After Hours Summary: INTU -5.5%, WDAY -3.2% lower on earnings; ZM +5.6%,

After Hours Summary: INTU -5.5%, WDAY -3.2% lower on earnings; ZM +5.6%, ROST +2.3% higher on earnings
After Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: ZM +5.6%, ROST +2.3%
Companies trading higher in after hours in reaction to news: LCID +0.7% (sets effective date for previously announced 1-for-10 reverse stock split), PH +0.2% (increases share repurchase authorization to 20 mln shares), SNV +0.1% (SNV and PNFP announce exec leadership team for combined company), MTRN +0.1% (amends precious metals consignment agreement)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: INTU -5.5%, WDAY -3.2% (also to acquire Paradox)
Companies trading lower in after hours in reaction to news: ARDT -3.3% (files for $500 mln shelf offering; also files for offering by selling shareholders), VNDA -2.9% (seeks FDA Commissioner review of decision on two generic versions of Hetlioz), JBHT -1.2% (names new CFO), ABNB -0.3% (Co-Founder Joe Gebbia on President Trump's radar to become first Government Design Chief, according to Bloomberg)