Global markets were pulled in opposite directions this week as macro policy, geopolitics, and AI-related trades all competed for attention, according to a weekly recap published by BlockBeats on Aug. 29.
Hawkish Jackson Hole remarks lifted rate hike expectations
Federal Reserve Chair Wosh delivered a hawkish signal at the Jackson Hole annual meeting, saying the underlying trend in U.S. inflation has not shown "meaningful improvement" and that the central bank still has work to do if core inflation does not return to 2% at a fast enough pace.
After the speech, market expectations for a September rate hike rose noticeably. The U.S. dollar index gained 0.85% this week. Gold dropped more than 3% in a single day and fell 3.24% for the week, while spot silver lost 3.82% over the same period.
U.S.-Iran developments and weaker oil prices
On the geopolitical front, prospects for U.S.-Iran negotiations remained uncertain. The U.S. launched what the report described as an "economic orphan action" against Iran and expanded the scope of sanctions.
Iran, for its part, coordinated with Oman on reopening the Strait of Hormuz. The two sides plan to establish temporary shipping lanes and carry out joint demining. Full reopening of the strait, however, still depends on conditions put forward by Iran, including the lifting of U.S. blockades and sanctions, the unfreezing of Iranian funds, and an end to Israel's hostile actions in Lebanon.
At the same time, Trump said the U.S. had obtained "majority control" over more than 65 billion barrels of oil reserves in Venezuela. Oil markets, meanwhile, traded on expectations of a recovery in Middle East supply, and crude prices weakened noticeably this week.
AI trade regained momentum
AI-related trading turned active again this week. NVIDIA posted strong earnings, reporting second-quarter revenue of $96.2 billion, up 106% year over year. Data center revenue reached $89 billion, up 117% from a year earlier. The company said it expects third-quarter revenue to reach $108 billion.
The earnings release pushed NVIDIA shares up 8.7% in a single day, adding about $442 billion in market value, or roughly RMB 3 trillion.
OpenAI also disclosed testing progress for its in-house inference chip Jalapeño and said it plans to deploy the chip before the end of 2026, while continuing to increase investment in AI infrastructure.
Other policy and market developments this week
In macro policy, the U.S. Treasury's expansion of long-term Treasury buybacks sparked discussion around "fiscal dominance" and the independence of the Federal Reserve. Japan was also reported to have used a cumulative JPY 15.4 trillion to intervene in the foreign exchange market, setting a single-month record.
In China, multiple departments introduced real estate measures at the same time. The maximum term for personal housing loans was extended from 30 years to 40 years, and policies supporting a new development model for the real estate sector in capital markets were also rolled out.
Other market focus points included Alibaba's placement of about HK$80 billion for AI infrastructure and model research and development, along with continued share purchases by management. Apple also unveiled new Mac products equipped with its first 2-nanometer M6 chip and scheduled its autumn launch event for Sept. 9, when its first foldable iPhone may appear.