Market Quick Take - Wider Tariffs and Another Chip Selloff as Gold Extends Its Run

Date: 25 August 2026

Market Drivers and Catalysts

• Macro: The U.S. has widened tariffs on Canadian goods to 50% following failed negotiations, with Canada promising equal retaliation. Additionally, tariffs on autos and steel will increase to 50% starting January 2027. A 7.5% tariff on Chinese goods is also in the works.
• Equities: U.S. stock-index futures rose as pressure on tech shares eased ahead of Nvidia's earnings report.
• Digital Assets: Major cryptocurrencies and large funds saw gains, while listed miners faced declines.
• Commodities: Gold's rally paused after a significant increase, while crude oil prices fell for the second consecutive day.
• Fixed Income: Treasury yields fell across the curve due to cheaper oil and speculation about buybacks.
• Currencies: The U.S. dollar partially recovered from recent losses.

Macro Overview

The U.S. Treasury has sanctioned nearly 60 entities linked to Iran, affecting various sectors including technology and oil. Recent economic data showed a decline in the Chicago Fed National Activity Index, indicating a modest loss of economic momentum.

Upcoming Economic Events

• Germany 2Q GDP - 0600 GMT
• Germany August IFO Business Climate - 0800 GMT
• U.S. July New Home Sales - 1400 GMT
• U.S. August Consumer Confidence - 1400 GMT

The Jackson Hole symposium is set for 27-29 August, focusing on financial innovation and its implications for policy.

Earnings Reports

Key earnings reports include:

• Intuit and Zoom Communications - Today
• Nvidia, Crowdstrike, Salesforce, and others - Wednesday
• Marvell Technology, Autodesk, and others - Thursday

Equities Performance

U.S. markets closed mixed, with the S&P 500 down 0.28% and the Nasdaq 100 down 0.97%. Chipmakers faced significant losses, with Nvidia falling 2.91% and AMD down 3.49%. In contrast, financials and utilities saw gains.

Digital Assets Update

Major cryptocurrencies advanced, while listed miners like Coinbase and IREN saw declines. The Senate is set to vote on the Digital Asset Market Clarity Act on 15 September.

Commodities Overview

Crude oil prices fell as the U.S. increased economic pressure on Iran. Gold steadied after a four-day rally, with significant inflows into ETFs indicating strong demand.

Fixed Income Insights

Treasury yields fell, with the 10-year yield at 4.706%. The market reacted to cheaper oil and potential buybacks.

Currencies Analysis

The U.S. dollar gained strength, recovering from previous losses, while the Canadian dollar faced pressure due to tariff threats. The Japanese yen weakened against the dollar.