Adobe stock price has plummeted in the past few months as competition in its business has continued rising. ADBE bottomed at $331 in August, down by over 44% from its highest level in 2024. A closer look at its performance shows that it is now trading at a bargain. 

Why the Adobe stock price has crashed

Adobe, a company that used to be a darling among investors has slowly become a disliked name in the past two years. 

There are two primary reasons for the ongoing performance. First, its core business has been disrupted by companies like Figma and Canva. 

Figma, which recently went public, is now valued at over $26 billion, while the latest fundraising placed the valuation at of Canva at over $50 billion. This disruption is a major issue as Adobe’s business used to be praised for its moat. 

Second, Adobe has struggled in the ongoing artificial intelligence hype. While it has invested in the AI space, recent results don’t show its impact. There are also fears that the AI trend will disrupt some of its business.

ADBE seems highly undervalued

While Adobe’s business is struggling, there are signs that the company is highly undervalued. First, the Adobe stock price trades at $354, much lower than the average estimate among analysts is $480, implying a 35% upside from the current level.

Brian Schwarz of Oppenheimer and Gregg Moskowitz of Mizuho see the stock rising to $460, while Brad Zelnick see it jumping to $475. The most bullish analysts are from Morgan Stanley, Goldman Sachs, and D.A Davidson, who see it jumping to over $500.

Other valuation multiples show that the company is undervalued, considering that its business is still growing. The company has a forward price-to-earnings (PE) ratio of 22 and 17 on a non-GAAP basis. The two numbers are lower than the sector averages and that of the S&P 500,

Adobe is also cheap based on the rule-of-40 multiple. On this, its trailing net income margin is 30%, while its revenue growth is 10.6%, resulting in a rule of 40 metric of 40.6%.

Adobe earnings ahead

The next important catalyst for the ADBE stock price is its earnings, which will come out on Thursday. Analysts expect these numbers to show that the revenue rose by 9.25% in the third quarter. 

Its earnings will be $5.18, also higher than the $4.65 it made last year. Adobe has a long record of beating its earnings, meaning that its performance will be strong. 

Most importantly, analysts expect that, despite its challenges, its annual revenue growth will be over 9.6% in the next two years. 

ADBE stock price analysis

Adobe stock price chart | Source: TradingView

The daily timeframe chart shows that the ADBE share price could be on the verge of a strong bullish breakout in the near term. That’s because the stock has formed a double-bottom pattern at $332 and a neckline at $422. 

Therefore, the stock will likely have a strong breakout, potentially to $422, its highest point in May. This breakout may happen after the company publishes its financial results. 

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Reddit Inc. (NYSE: RDDT) shares climbed to an all-time high of $261.13 on Wednesday, marking a remarkable milestone for the social media company and reflecting robust investor enthusiasm.

The stock has delivered a one-year return of more than 350%, a gain that underscores strong confidence in Reddit’s growth trajectory and its rising influence in the competitive social media landscape.

The surge comes as Reddit continues to expand its user base and diversify its revenue streams, fueling optimism about its long-term potential.

With revenue climbing nearly 70% in the past 12 months, investors are rewarding the company’s ability to translate user growth into stronger financial results.

Strong earnings and user growth

Reddit’s latest financial performance played a pivotal role in its stock’s rapid ascent.

The company recently posted second-quarter earnings that surpassed Wall Street expectations, providing a solid foundation for investor optimism.

Revenue growth was accompanied by encouraging user metrics.

Global daily active users jumped 21% year-on-year to reach 110.4 million, a figure that exceeded analyst projections.

US user numbers remained stable, further reinforcing the platform’s ability to maintain a strong core base while expanding internationally.

The company also issued a favorable outlook for the third quarter, fueling expectations that momentum will continue in the second half of the year.

Reddit stock has gained over 60% since its results.

Analysts raise price targets

Analysts was impressed by the company’s Q2 performance.

Deutsche Bank raised its price target to $205 and maintained a Buy rating, emphasizing Reddit’s user growth and execution.

Morgan Stanley increased its target to $230, citing stronger-than-expected metrics, particularly in the US market.

RBC Capital maintained a Sector Perform rating with a $210 target, focusing on Reddit’s advertising potential and opportunities to expand its ad surfaces.

BofA Securities raised its target to $180, pointing to strong execution and a 50% increase in advertiser adoption on the platform.

Jefferies raised its price target on Reddit to $300 on Wednesday, up from $230, citing confidence in the platform’s ability to capture a greater share of US digital advertising.

The firm projects Reddit could expand its ad market share by roughly 65 basis points over the next four years, in line with peers Snap (NYSE: SNAP) and Pinterest (NYSE: PINS).

Analysts highlighted Reddit’s extensive library of user-generated, contextual content as a key asset for third-party generative AI models.

They also pointed to the potential for significant increases in data licensing revenue when contracts come up for renewal in the first half of 2027.

The new price target implies an upside of about 25%.

Future prospects and market sentiment

The record-high stock price illustrates investors’ optimism about Reddit’s evolving role in digital advertising and social engagement.

The company’s nearly 70% revenue growth over the past year, coupled with stable and rising user metrics, has strengthened the perception that it can compete effectively against larger rivals in the social media space.

At the same time, analysts’ upward revisions signal that Wall Street sees room for further growth, even after the stock’s dramatic rally.

With expanded advertiser adoption and a growing user base, Reddit is increasingly viewed as a platform with long-term potential in the broader digital economy.

While the company still faces competition and the challenges of scaling advertising effectively, its current momentum has set a positive tone among investors.

For now, Reddit’s strong execution and accelerating growth trajectory are driving its shares to new heights, cementing its position as one of the standout performers in the social media sector.

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The US news cycle on Wednesday was marked by a mix of political, corporate, and economic developments that drew national and market attention.

Conservative commentator Charlie Kirk was shot during a campus event in Utah, prompting widespread condemnation.

Meanwhile, Oracle co-founder Larry Ellison surpassed Elon Musk to become the world’s richest person after a sharp rally in the company’s shares.

Fresh government data showed US producer prices unexpectedly declined in August, fueling speculation of a Federal Reserve rate cut.

Against this backdrop, US markets swung between record highs and late-session pullbacks, led by strength in AI-related stocks.

Conservative commentator Charlie Kirk shot at Utah event

Conservative commentator Charlie Kirk, a high-profile ally of President Donald Trump, was shot during an event at Utah Valley University on Wednesday, according to multiple reports.

Video circulating online appeared to show Kirk being struck mid-remarks, with students fleeing the scene as gunfire erupted.

The university confirmed that a single shot was fired on campus, noting that the suspect is in custody and that an investigation is underway.

University spokeswoman Ellen Treanor told Bloomberg that the shot came from a building about 200 yards away, roughly 20 minutes into Kirk’s address.

The university said the campus would remain closed for the rest of the day.

The extent of Kirk’s injuries was not immediately known, but the incident drew swift condemnation from political leaders across party lines.

Larry Ellison overtakes Musk as world’s richest person

In corporate news, Oracle co-founder and chairman Larry Ellison surpassed Tesla CEO Elon Musk to become the world’s richest person, following a sharp rally in Oracle shares.

The company’s stock rose to $341.77, pushing its market capitalization from $678 billion to $960 billion. Ellison, who owns 41% of the software giant, saw his net worth climb to $397 billion, overtaking Musk’s $384 billion.

Ellison, 81, derives the bulk of his fortune from Oracle, where he also serves as chief technology officer.

The rally came after the company’s quarterly results, released Tuesday evening, sparked investor enthusiasm for its role in powering artificial intelligence infrastructure.

Musk, who first reached the top of the global wealth rankings in 2021, has traded the position with Amazon’s Jeff Bezos and LVMH’s Bernard Arnault in recent years.

He had maintained the top spot for just over 300 days before Ellison’s rise.

US producer prices decline in August

Economic data released Wednesday provided a fresh signal that US inflationary pressures are cooling.

The Producer Price Index (PPI) for final demand slipped 0.1% in August, defying Wall Street forecasts for a 0.3% increase.

The report gives the Federal Reserve more flexibility as it considers lowering interest rates at its upcoming policy meeting later this month.

Economists had expected a rebound in wholesale prices, but the decline suggests easing cost pressures across key sectors of the economy.

Meanwhile, wholesale inventories edged up 0.1% in July, slightly below the previously estimated 0.2%.

The figures suggest that businesses remain cautious in restocking after sharp drawdowns earlier in the year.

Markets slide after reaching new highs

US equities had a volatile session on Wednesday as investors digested the producer price data, corporate earnings, and sector-specific developments.

The S&P 500 briefly touched a record intraday high of 6,555.97 with a 0.7% rise before trimming gains to close up 0.3%.

The Nasdaq Composite closed flat after also hitting an intraday peak.

The Dow Jones Industrial Average dropped 219 points, or 0.5%, dragged lower by Apple after its latest iPhone launch underwhelmed investors.

Oracle and other artificial intelligence-linked stocks were among the biggest gainers, while breadth across the S&P 500 remained weak, with more decliners than advancers.

Investors now turn their attention to Thursday’s consumer price index reading, a more closely watched inflation measure that could influence the Fed’s near-term rate decisions.

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Metaplanet stock price remains under intense pressure as investors sour on Bitcoin treasury companies and its Bitcoin premium slips. It was trading at ¥680 on Thursday, down by 65% from its highest level this year. 

The stock is about 21% above the lowest level this week. This article explores the top reasons why Metaplanet shares have plunged this year.

Metaplanet stock plunge is part of a growing challenge

One reason why the Metaplanet share price has plunged is that the entire Bitcoin treasury industry is struggling. Strategy, the company started by Michael Saylor, has seen its stock plunge by 30% from its highest point this year. 

Similarly, Trump Media (DJT) stock price has plunged by over 60% from the year-to-date high and is hovering at its lowest level in months. Other companies, such as Bullish, KindlyMD, and American Bitcoin, have all plummeted.

Metaplanet stock has dropped as the company’s funding “flywheel” appears to break. The concept of a flywheel in Metaplanet’s case involves the Evo Fund. In this, Evo received moving strike warrants, giving it the right to buy Metaplanet shares at a pre-set price.

 If the stock rise above the strike price, the Evo Fund exercises the warrants at a profit, giving the cash to Metaplanet, which it uses to buy Bitcoin. Recently, however, the stock has plunged, meaning that the amount Metaplanet uses to buy BTC has dwindled. 

To address this situation, the company announced its initial overseas share offering at ¥553, a 10% discount from the initial price. It will raise ¥204 billion, most of which will be used to buy Bitcoin.

Therefore, the funding challenges mean that the company may struggle to hit its target of buying 210k coins in the long term. It now has 20,136, meaning that it needs to buy 189,000 to get to its goal. At the current price of $113,000, it needs to raise over $21 billion. 

Valuation concerns remain

Metaplanet stock price has also plunged as investors raise concerns about the valuation of Bitcoin treasury companies. In Metaplanet’s case, it has a market capitalization of $4 billion compared to its Bitcoin holdings value of $2.3 billion. Including its debt and cash, the company’s enterprise value stand at $5 billion. 

These numbers indicate that the company has an mNAV of 1.64, lower than the year-to-date high of 8. Some investors question why these companies trade at a premium and all they own is Bitcoin, which is readily available.

Furthermore, Metaplanet shares have plummeted as the entire treasury industry has become oversaturated. There are now over 170 companies with Bitcoin holdings. More companies have launched altcoin-focused treasury strategies, with Tom Lee’s BitMine holding Ethereum coins worth over $8 billion. 

Metaplanet stock price technical analysis

The daily timeframe chart shows that the Metaplanet share price has plunged in the past few months, moving from a high of ¥1,962 in June to ¥672 today. It has plunged below the 50-day Exponential Moving Average (EMA).

It has retested an important level, which was its highest level in February this year. This break-and-retest pattern is one of the most common bullish reversal signs.

The stock has also formed a falling wedge pattern, which comprises of two falling and converging trendlines. Also, the MACD and the Relative Strength Index (RSI) are showing signs of a bullish divergence.

Therefore, the most likely scenario is where the stock rises, potentially to the 50-day Exponential Moving Average (EMA) at ¥969 and then resumes the downtrend.

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A wave of shock and horror has swept across the American political landscape following the assassination of prominent conservative activist and presidential aide Charlie Kirk.

In a somber address from the Oval Office, a grieving and angry President Donald Trump vowed to hunt down those responsible for what he called a “dark moment for America,” while immediately framing the killing as the direct result of “radical left violence.”

The assassination of the 31-year-old co-founder of Turning Point USA, who was shot and killed during a campus event at Utah Valley University, has sent a chill through Washington, drawing a rare and powerful bipartisan chorus of condemnation and raising fears of a dangerous new era of political violence.

A vow for justice from the oval office

Speaking to the nation in a video message on Thursday, President Trump mourned the loss of a close ally and patriot, but his grief was quickly matched by a steely resolve for retribution.

He vowed that his administration would “find each and every one of those who contributed to this atrocity and to other political violence.”

The president drew a direct line from the killing to what he sees as a disturbing pattern, recalling the assassination attempt against him last year and the 2024 murder of UnitedHealthcare CEO Brian Thompson.

“Radical left political violence has hurt too many innocent people,” Trump said.

He praised Kirk as a man who “inspired millions,” a “patriot who devoted his life to the cause of open debate and the country that he loves so much.” Offering comfort to Kirk’s wife and young children, the president said he took solace in the knowledge that Kirk, a man of “deep faith,” is now “at peace with God in heaven.”

An unprecedented bipartisan outcry

The horror of the assassination transcended the nation’s bitter political divides, prompting an immediate and unified outcry from leaders across the spectrum.

The House of Representatives held a moment of silence, and lawmakers from both parties spoke with one voice to condemn the act.

“Utterly devastating. Charlie was a close friend and confidant,” said House Speaker Mike Johnson, who called the shooting “detestable” and declared that political violence “has to stop.”

“There is no place in our country for political violence. Period, full stop,” wrote Senate Majority Leader John Thune.

This sentiment was mirrored by their Democratic counterparts. Former President Joe Biden stated, “there is no place in our country for this kind of violence. It must end now.” Former Vice President Kamala Harris wrote that she was “deeply disturbed” by the shooting.

Let me be clear: Political violence has no place in America. I condemn this act, and we all must work together to ensure this does not lead to more violence.

The patriot and the provocateur

The shock of Kirk’s death is amplified by his prominent and often controversial role in modern American politics. As the co-founder of Turning Point USA, he built a powerful nonprofit organization dedicated to promoting conservative ideals on high school and college campuses.

His work made him a star in the Republican Party and a close ally of the Trump family, particularly Donald Trump Jr.

While authorities in Utah continue their active search for the culprit—an initial person of interest was questioned and released—a nation is left to grapple with the assassination of a figure who stood at the very heart of its most passionate and volatile debates.

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Klarna stock price rose initially after its much-anticipated initial public offering. KLAR surged to over $57 and then closed at $45, giving it a market capitalization of over $17 billion. This article explores whether it is safe to buy the Klarna stock now.

Klarna is a growing company 

Klarna, a Swedish technology company that offers buy-now, pay-later solutions primarily in Europe and the United States, went public, raising millions of dollars.

The most recent results showed that the company’s business was growing. Its revenue rose from $661 million in the second quarter of 2024 to $823 million this year. Most of this revenue came from the transaction and service segment, which made over $604 million. 

The transaction and service division is where the company is paid by sellers whenever companies use its payment option. Its interest income rose to $219 million, up from $164 million in the same period last year. 

Most of Klarna’s services is free for clients in that they buy products and then pay in four equal instalments. It also offers other solutions, charging interest for larger purchases and longer durations. 

The company’s gross merchandise value (GMV) rose to $31.2 billion from $25 billion, while the number of its active consumers rose from 85 million to 111 million, and its merchants are nearing 800,000.

The challenge, however, is that Klarna is not profitable as it focuses on growth opportunities in a highly competitive industry. It made a loss of over $53 million, up from $18 million in the same period last year.

Klarna was profitable a few years ago, but the management decided to boost spending as competition with AfterPay and Affirm intensified.

Is Klarna stock a good buy?

Some analysts believe that Klarna stock is a good buy, citing its strong market share in the BNPL industry and the large total addressable market. With inflation rising, more people are turning to BNPL platforms for simplified shopping.

One analyst who is bullish on Klarna stock is Jim Cramer, the popular CNBC pundit. He praised the company pointing to its past profitability, valuation, and the fact that it offers other products. He said:

“While Klarna roared right out of the gate, the stock hasn’t gone to an insane valuation yet. I think the numbers look good, so I think it can be bought at these levels.”

Jim Cramer is right to a large extent as Klarna is valued much lower than Affirm, which has a market cap of over $27 billion. 

The two companies are of a similar size, with Affirm having a revenue of $876 million in the last quarter compared to Klarna’s $823 million. The major difference is that Affirm eked a net profit of $69 million in the quarter.

Klarna is bigger than Affirm in some aspects, including in the number of customers and merchants. Affirm has 23 million users compared to Klarna’s 111 million. 

Still, historically, buying recently IPOed companies is not always the best strategy. In most cases, these stocks rise initially after the IPO, then plunge, and then rebound. 

A good example of this is the Circle stock price, which surged by after its IPO and has now plunged by over 50% from its all-time high. Similarly, Bullish stock initially soared shortly after the IPO and then dropped by over 47% to a record low of $33. 

One reason for this is that the hype surrounding the IPO normally ends. Also, investors start to focus on the lockup expiry, which happens six months after an IPO. 

Therefore, the most likely scenario is where the Klarna stock price retreats in the next few months and then rebounds. In the long term, the stock will likely surge to over $100.

Read more: Klarna IPO is coming: will its stock be a good buy?

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A tense and watchful calm has descended upon Asian markets, as a surprise drop in US producer prices rolls out the red carpet for a Federal Reserve rate cut, but the real, high-stakes verdict on inflation is still to come.

The market is caught in a state of suspended animation, with a rally in some of the region’s tech giants providing a fragile floor of optimism ahead of a make-or-break report that could determine the course of the global economy.

Asian equities were steady on Thursday, with major benchmarks in Japan, South Korea, and mainland China all posting gains, while Hong Kong and Australia fell. The muted but broadly positive tone comes after the S&P 500 set a fresh record high in the US on Wednesday.

A dovish surprise, a hawkish debate

The market’s mood was significantly brightened by an unexpected decline in US producer prices, which fell for the first time in four months in August. The data soothed fears that runaway inflation would tie the Fed’s hands and has supercharged bets on a September rate cut.

But the dovish surprise has also ignited a new and more aggressive debate.

“Investors are now contemplating the extent to which August’s payrolls, the benchmark revisions, and PPI should drive a conversation about a 50 basis-point cut next week,” said Ian Lyngen and Vail Hartman at BMO Capital Markets.

While most, including BMO, are still in the 25-basis-point camp, the case for a more aggressive move is growing.

“The Fed should cut 50 basis points next week — but I don’t think they will,” said Neil Dutta at Renaissance Macro Research. “The doves on the FOMC have a very strong case to make.”

The final verdict: A CPI showdown awaits

The answer to this high-stakes question will arrive later today, with the release of the all-important US consumer price index (CPI). A weaker-than-expected reading could unleash the doves and send markets soaring.

“Tomorrow’s CPI will carry more weight, but today’s PPI print essentially rolled out the red carpet for a Fed rate cut next week,” said Chris Larkin at E*Trade from Morgan Stanley.

A region of contrasts

This global drama is playing out against a complex regional backdrop. In Japan, the tech giant Softbank Group is soaring, with its shares rising around 8 percent to a new high after a rally in its key holding, Arm Holdings.

In China, however, the tech behemoth Alibaba has retreated 1.3 percent as it seeks to raise 3.17 billion dollars in what would be the year’s biggest convertible note offering.

Meanwhile, a potential diplomatic thaw is emerging between the US and India, with President Donald Trump and Prime Minister Narendra Modi pledging to resume trade negotiations after weeks of a blistering fight over tariffs.

A nuted start on Dalal Street

This mixed and uncertain picture is set to be reflected on Dalal Street. The Indian stock market is poised for a mildly higher but muted start to the session.

At 9:30 am IST, the Sensex had opened 77.05 points (0.095 percent) higher at 81,502.20, while the Nifty had gained just 9.35 points (0.037 percent).

The cautious open comes after a strong previous session that saw the market end higher, with the Nifty 50 closing just shy of the 25,000 mark. Now, like the rest of the world, India waits for the verdict from America.

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A day of major developments is underway across the globe, as the European Central Bank prepares to deliver its latest verdict on interest rates, a stunning new report reveals the colossal cost of fare evasion in New York City, and Jack Ma’s Ant Group makes a dramatic entrance into the humanoid robotics race.

Here’s your one-stop stand to catch up on all the headlines you may have missed.

European Central Bank set to hold rates steady as economy withstands tariffs

The European Central Bank is set to leave interest rates on hold for a second consecutive meeting on Thursday, a clear signal of its conviction that the Eurozone economy can endure the twin headwinds of President Donald Trump’s tariffs and the renewed political turmoil in France.

All 59 economists in a Bloomberg survey expect the deposit rate to be held at 2 percent. With inflation currently deemed to be meeting its target and the 20-nation economy proving resilient, most ECB officials appear content with the current policy settings, though they must also weigh the prospect of a Federal Reserve rate cut next week that could send the euro soaring.

NYC transit lost a staggering 1 billion dollars to fare evasion in 2024

New York City’s sprawling transit system lost an almost unbelievable 1 billion dollars in revenue from fare evasion in 2024, a vast sum that could have fixed budget shortfalls or covered three rounds of fare increases.

In a new report, the fiscal watchdog Citizens Budget Commission revealed the scale of what the Metropolitan Transportation Authority (MTA) has called an “existential crisis.”

The biggest challenge is on the city’s buses, which accounted for 568 million dollars of the lost revenue, while subway riders failed to pay 350 million dollars. The MTA is now experimenting with different strategies to combat the rampant problem.

Jack Ma-backed Ant Group unveils its first humanoid robot

Jack Ma-backed Ant Group Co. has showcased its first-ever humanoid robot, formally joining an intensifying global race to commercialize a frontier technology.

The company’s robotics unit, Robbyant, demonstrated its R1 humanoid model at a conference in Shanghai on Thursday. The robot can serve as a tour guide, sort medicine, provide medical consultations, or even perform basic kitchen tasks.

Ant is the latest global giant to delve into the nascent field, a battleground that includes major players like Tesla Inc. as well as a host of up-and-coming startups.

FIFA loses a standoff for Mexico City stadium box use in the World Cup

In a rare defeat for the world’s most powerful soccer organization, the holders of private boxes at Mexico City’s iconic Estadio Banorte have won a standoff against FIFA over who gets to control those spaces during the 2026 World Cup.

The dispute arose because the stadium had signed 99-year contracts for box access to fund a renovation back in 1966. After prolonged negotiations, an agreement has been reached where a unit of the stadium’s owner will make “relevant obligations and payment commitments” to FIFA to secure access for the boxholders.

The stadium, famous for Diego Maradona’s “Hand of God” goal, is set to host five games, including the tournament’s inaugural match.

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Gasoline margins in the Atlantic Basin surged to an average of $18-$19 per barrel in September, a significant increase from the $6-$9 per barrel seen a year ago. 

This sharp rise, which has pushed Rbob gasoline forward margins to their highest levels since August 2024, highlights the profound impact prolonged supply disruptions can have even on an oversupplied market, according to a Vortexa analysis.

This summer, gasoline import demand in the Atlantic Basin was lower than anticipated, registering 5% below the nine-year seasonal average in June, Vortexa said.

“Combined with counterseasonal middle distillate strength, refineries likely shifted their yields to produce middle distillates, widening the supply gap between these transportation fuels,” Pamela Munger, head of market analysis, EMEA, said.

Refineries shift focus to middle distillates

Gasoline loadings within the Intra-Atlantic Basin have consistently remained below the nine-year seasonal average throughout the entire year.

Throughout this period, a notable surge in middle distillate loadings was observed, reaching the highest point within the nine-year seasonal range. 

This significant increase can be directly attributed to the robust demand for power generation across Wider Europe. 

The heightened need for electricity in the region drove up consumption of middle distillates, leading to increased shipments to meet the escalating demand. 

This trend underscores the critical role of middle distillates in regional energy supply, particularly for power generation infrastructure.

The current robust margins in gasoline, despite the generally subdued demand observed throughout the summer, can be attributed to a complex interplay of several crucial supply-side factors. 

Unplanned outages and margin strength

A significant contributor is a series of unplanned refinery outages projected across key regions including Europe, West Africa, and the Middle East, scheduled to occur between September and November 2025. 

These disruptions are expected to tighten gasoline supply considerably.

Concurrently, refineries are strategically adjusting their operational yields, a process known as “flexing yields,” to capitalise on the unusual, counter-seasonal strength witnessed in middle distillates. 

Middle distillates, which include products like diesel and jet fuel, typically see peak demand during colder months. 

However, their current robust performance is prompting refiners to prioritise their production, which inherently reduces the output of gasoline. 

This strategic shift further exacerbates the supply constraints in the gasoline market, contributing significantly to the observed margin strength. 

The combination of these unplanned supply reductions and intentional production adjustments is creating a uniquely tight gasoline market, driving up prices and consequently boosting refinery margins.

“Low crude values have also contributed to the strength despite poor demand,” Munger said. 

Despite widespread reports anticipating a milder European refinery turnaround season compared to previous years, 2025 has already seen a notable decrease in operating capacity, amounting to approximately 400,000 barrels per day. 

Munger noted:

Additionally, considering the Middle East now plays a larger role in supplying the Atlantic Basin, the looming outage program which includes over 900kbd between September – December, is likely to have an outsized impact on refined product margins

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The Nikkei 225 Index jumped to a record high on Thursday, helped by the strong performance of Softbank, the giant telecommunication and investing powerhouse. It jumped to a high of ¥44,352, continuing an uptrend that started in April when it bottomed at ¥30,800. 

Softbank helped to propel the Nikkei 225 Index 

The ongoing Nikkei Index surge was mostly because of Softbank, whose stock jumped by 10% and reached its all-time high of ¥17,885. It has jumped by over 212% from its April lows.

Softbank has benefited from it investments in the artificial intelligence industry. In particular, the company is part of the Stargate project, which was unveiled earlier this year to invest in AI infrastructure in the US. The other partners of this project are Oracle and OpenAI. 

Softbank stock jumped as it mirrored the performance of Oracle, whose shares jumped by over 30% after reporting a strong quarterly result. 

The company’s backlog has jumped to $455 billion, while its cloud infrastructure will jump to $18 billion in 2026. $32 billion in 2027, and then hit $144 billion in 2030. 

Many other companies have helped to supercharge the Nikkei 225 Index this year. Mitsubishi Heavy Industries is up by 70%, while Fujikura has pumped by over 115%. Other top gainers in the index this year are firms like Shimizu, Mitsubishi Estate, Sumitomo Dainippon, Marubeni, Nippon Express, and Yokohama Rubber.

Global stock market rally as hopes of Fee cuts rise 

The Nikkei 225 Index has jumped because of the ongoing surge in global equities. A good example of this is in the United States, where the top indices like the S&P 500 and Nasdaq 100 have all soared to a record high.

Most of this surge is happening as investors remain optimistic that the Federal Reserve will cut interest rates in the coming meeting.

Odds of a rate cut have jumped in the past few weeks after the US published weak macro data. Consumer confidence has plummeted, while the labor market is in a recession. The economy created just 22,000 jobs in August, while the unemployment rate rose to 4.3%.

Federal Reserve interest rate cuts help to boost global stocks by making bonds unattractive. Indeed, the short-term bond yields have all plunged this month.

The Nikkei 225 Index has also soared after a US appeals court ruled that Donald Trump’s tariffs were illegal. Trump has appealed and is betting on the case moving to the Supreme Court. Still, there is hope that his tariffs will be ended, a move that will benefit Japanese companies.

Nikkei 225 Index technical analysis 

The daily timeframe chart shows that the Nikkei Index has been in a strong bullish trend in the past few months. It has moved from a low of ¥30,813 in April to over ¥44,000.

The index has moved above the important resistance level at ¥40,597, its highest level in December last year. It has remained above the 50-day and 100-day Exponential Moving Averages (EMA).

Therefore, the stock will likely continue rising as bulls target the next important resistance point at ¥45,000 as it has invalidated the double-top point at ¥43,880.

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