BlockBeats reported on Aug. 8 that global markets were driven this week by a mix of macro data, Middle East developments, and fresh pressure points across the AI sector.
Weak payrolls data cools rate-hike expectations
U.S. nonfarm payrolls for July unexpectedly fell by 23,000, far below market expectations for an increase of 80,000. Payroll data for May and June was also revised down by a combined 103,000, prompting markets to sharply reduce expectations for a Federal Reserve rate hike. The probability of a September hike dropped from about 58% to 44%.
The repricing was reflected across major assets. The U.S. dollar index fell for a second consecutive week. Gold gained more than 7% on haven demand and expectations for lower rates, while silver rose more than 10%. All three major U.S. stock indexes also finished the week higher.
Hormuz reopening framework adds another layer to oil volatility
On the geopolitical front, reports said Iran and Oman had reached a temporary framework for reopening the Strait of Hormuz. The arrangement is expected to last 60 days, though it still requires Iranian approval. The report also said the U.S. and Iran remain divided over control of the strait.
Energy markets reacted with sharp swings. Oil prices first fell on expectations that tensions could ease, then rebounded as supply risks returned to focus.
AI trade faces valuation pressure despite strong growth
Among market themes, Unitree priced its STAR Market IPO at 150.8 yuan per share, implying an issuance valuation of about 61 billion yuan. Institutional subscription demand reached 2,618 times. SpaceX, in its first earnings report after listing, posted second-quarter revenue of $7.8 billion, up 92% year over year, though more than $18 billion in capital expenditures drew market attention.
SanDisk and Western Digital both reported results above expectations, but their shares fell sharply under valuation pressure, a sign that the AI storage segment has entered a phase defined by high growth and high expectations. DeepSeek also said it plans to raise API prices substantially, marking an adjustment to its low-cost strategy.
Elsewhere, global oil companies posted strong profit growth in the second quarter. Saudi Aramco reported net profit growth of 44% year over year, while Trump called on oil producers to lower gasoline prices. Wall Street firms are accelerating the use of AI in risk management, but they are also dealing with new cyberattack risks tied to AI tools. At the same time, Google DeepMind reorganized its core team, and OpenAI and Apple became locked in a legal dispute over AI talent movement, keeping the competition for AI talent in the spotlight.