GROWTH STALLED
The latest data from the ADP Research Institute has revealed a weakening trend in the employment landscape in the U.S., as companies added the lowest number of workers since the beginning of the year. Private payrolls saw an increase of 122,000, falling below the anticipated 150,000 gain. This subdued job growth aligns with indications of reduced labor demand across various sectors, with professional services, information, and manufacturing industries experiencing job cuts. Notably, wage growth has decelerated to its slowest rate since 2021 for employees transitioning to new roles as well as those remaining in their current positions. This trend reflects a gradual decline in hiring activities, further evidenced by a rise in joblessness and a surge in Americans seeking unemployment benefits.
LOW COST OPTION
A lower-fee version of the world’s second-largest Bitcoin fund has emerged in the U.S. market, with the debut of the Grayscale Bitcoin Mini Trust. This new investment option features a 0.15% expense ratio, making it the most cost-effective among U.S. exchange-traded funds holding Bitcoin. The Mini Trust is seeded with a portion of assets from the long-standing Grayscale Bitcoin Trust, which recently transitioned into an ETF. The launch of this alternative follows the arrival of nine other Bitcoin ETFs from major players like BlackRock Inc. and Fidelity Investments, intensifying competition for investor flows within the cryptocurrency sector.
BOLD MOVE
According to analysts at AllianceBernstein, U.S. presidential candidate Donald Trump has called for the U.S. to lead global Bitcoin production, which could lead to significant business opportunities and the development of American-made mining hardware. The proposal is seen as a potential boost for the mining industry and could generate up to $20 billion in revenue from mining chips and hardware over the next five years. Moreover, while much of the current hardware comes from China, emerging American mining companies like Block and Auradine offer a chance to diversify the supply chain and increase domestic production. American-made hardware could benefit U.S. miners by improving efficiency, lowering costs, and creating opportunities in artificial intelligence and high-performance computing. AllianceBernstein views the rise of U.S.-based Bitcoin miners and the shift away from China as positive developments. Former President Trump, now seeking the Republican nomination, has shifted his stance on cryptocurrency, advocating for the U.S. to become the leading hub for crypto production. In fact, at a recent Bitcoin conference, he pledged to ensure domestic production of Bitcoin.
PERFORMANCE EXCELLED
Advanced Micro Devices (AMD) revealed in its second quarter earnings report that it outperformed expectations with adjusted earnings per share of 69 cents and revenue of $5.84 billion, exceeding Wall Street estimates. The company’s net income also showed significant improvement compared to the previous year, and although there was a 6% decline in AMD’s shares year to date, they remain a major player in data center GPUs after Nvidia. AMD’s AI chip revenue, reported in the Data Center segment, saw a substantial increase, reflecting a growing demand for their products, while the Client segment, focusing on PC sales, also experienced notable growth, indicating a potential recovery in the PC market. Additionally, AMD’s embedded segment, acquired through Xilinx, reported sales that surpassed expectations, showcasing the company’s diverse and expanding product portfolio. Moreover, investors are closely watching AMD’s AI chip sales, particularly the MI300X chip, with hopes of capturing more market share from Nvidia.
MIXED BAG
Despite reporting better-than-expected earnings and revenue, Microsoft’s stock value has decreased as investors seemed disappointed with the cloud division’s performance, overshadowing the positive financial results. Nevertheless, it is still worth highlighting that the company’s revenue rose by 15%, reaching $64.73 billion, with net income increasing to $22.04 billion. In addition, Microsoft remains optimistic about future growth, as the technology giant has forecasted a significant acceleration in cloud growth in the first half of 2025. Furthermore, Azure and other cloud services saw a 29% revenue increase, mainly fueled by AI services, although falling short of expectations. Meanwhile, the PC market showed signs of solidifying, with Windows licenses rising by 4%, contributing to the company’s 14% revenue gain in the More Personal Computing unit. In addition, the gaming sector also experienced growth, with over 500 million monthly active users following the Activision Blizzard acquisition. Moreover, it is worth noting that despite the setback in stock value, Microsoft’s overall performance has remained robust, with a 12% year-to-date increase.
