Ambarella (NASDAQ: AMBA) stock soared 20% on Friday after the semiconductor company delivered second-quarter earnings that topped Wall Street expectations and issued guidance well ahead of analyst forecasts.

The results underscored growing demand for the company’s edge artificial intelligence (AI) solutions, boosting investor sentiment.

Earnings beat estimates

For the quarter, Ambarella reported adjusted earnings of 15 cents per share, handily surpassing the 5 cents per share projected by LSEG consensus estimates.

Revenue also came in above expectations, at $96 million versus the $90 million anticipated.

Despite the adjusted profit, the company posted a net loss of $20 million, or 47 cents per share, reflecting costs tied to stock-based compensation and the amortisation of acquisition-related expenses.

That marked an improvement from the year-ago quarter, when Ambarella recorded a net loss of $35 million, or 85 cents per share.

The results highlight the company’s ongoing effort to balance significant investment in research and development with the growing commercial potential of its technology.

In the session, the stock hit its 52-week high of $93.44. The stock lost some of its gains and was trading at $82.12 at the time of writing.

Strong guidance and growth outlook

Looking ahead, Ambarella projected third-quarter revenue between $100 million and $108 million, far exceeding LSEG’s estimate of $91 million.

The company also raised its full fiscal year revenue growth outlook to a range of 31% to 35%.

At the midpoint, that equates to $379 million, comfortably above the $350 million expected by analysts.

“After a multi-year period of significant edge AI R&D investment, our broad product portfolio enable us to address a rising breadth of edge AI applications,” CEO Fermi Wang said on a call with analysts.

He pointed to portable video, robotic aerial drones, and edge infrastructure as particular areas of strength.

Edge computing, in which data is processed locally on devices rather than in distant cloud servers, continues to gain traction across industries seeking greater efficiency, speed, and security.

Ambarella’s system-on-chip semiconductors and AI software are positioned at the core of this trend.

Investor reaction and strategic context

The upbeat results and outlook propelled Ambarella’s stock sharply higher, adding to gains seen earlier this year when Bloomberg reported in June that the company was exploring a potential sale and had engaged in talks with banks.

The latest rally reflects both confidence in Ambarella’s near-term prospects and optimism about longer-term opportunities in edge AI markets.

While the company remains unprofitable on a net basis, narrowing losses and stronger revenue growth are seen as encouraging signs by investors.

The focus will likely remain on execution and the pace at which Ambarella can translate its research investments into sustained profitability.

With demand accelerating for edge computing solutions, Ambarella’s ability to expand its product adoption across video, drone, and infrastructure markets could determine whether its latest momentum extends through the remainder of the year.

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Nukkleus Inc (NASDAQ: NUKK) soared over 40% this morning after announcing a strategic joint venture with “Mandragola” aimed at modernising aviation infrastructure across Europe and Israel.

The deal broadens NUKK’s presence in the fast-growing aircraft maintenance, repair, and overhaul (MRO) market, which was valued at about $110 billion in 2024.

Nukkleus stock has been thoroughly disappointing for investors this year. Despite today’s rally, it’s down more than 80% versus its year-to-date high in late January.

Why Mandragola deal is significant for Nukkleus stock

Teaming up with the Israeli company could prove meaningfully positive for NUKK shares because it positions them to benefit from Europe’s evolving defense landscape.

With geopolitical tensions rising in Eastern Europe, particularly due to the Russia-Ukraine conflict, demand for resilient aviation infrastructure is expected to climb.

In fact, the global MRO market is broadly expected to surpass $125 billion valuation over the next ten years, offering ample runway for Nukkleus to scale operations and tap into long-term defence spending cycles.

Note that the Mandragola joint venture will establish advanced aviation hubs in Baltics and Israel, including a NATO-compliant logistics facility in Riga – supporting both military and civil aviation needs.

Recent BladeRanger deal also bode well for NUKK shares

Nukkleus shares are rallying this morning also because the Nasdaq-listed firm signed an exclusive US distribution agreement with another Israeli firm, BladeRanger, on August 26^th.

According to the company’s recent press release, it has secured exclusive rights to commercialise BLRN’s surveillance and tactical drone systems across American defence and homeland security markets.

The three-year agreement won Nukkleus exposure to another fast-growing segment within defence technology – “drone payload” – expected to be worth over $33 billion by the end of this decade.

Nukkleus chief executive Menny Shalom called the move “transformative”, adding it aligns with the firm’s broader goal of building a high-tech ecosystem of A&D solutions.

Investors should note that the BladeRanger transaction includes performance-based incentives and minimum purchase commitments as well – signalling a serious push toward revenue generation.

Why Nukkleus shares remain unattractive in 2025

Despite the aforementioned flurry of strategic announcements, Nukkleus stock remains a high-risk investment for the second half of 2025.

Why? NUKK shares do not currently receive coverage from Wall Street analysts, leaving investors with limited visibility into its financial health and growth trajectory.

Moreover, the company based out of Jersey City, NJ, is yet to report consistent profitability, with recent filings showing negative net margins and shareholder dilution.

While the Mandragola and BladeRanger deals offer compelling narratives, they are still early-stage initiatives with execution risk.

Plus, the absence of institutional coverage and unstable financials make it difficult to assess valuation or forecast future performance.

Therefore, NUKK stock may be riding a wave of momentum – but investors should keep one eye on the fundamentals.

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Lululemon stock price has moved from being one of the most beloved into a fallen angel, a trend that may continue after Gap, its key competitor, published weak results. LULU has plunged by 60% from its highest point in 2024.

LULU stock faces a triple-whammy

Lululemon was one of the best-performing companies during its peak as it became the leading player in the athleisure industry. This growth accelerated during the pandemic, when most people stayed nd worked from home. 

Its success, however, has hit a major wall as its growth slows, competition rises, and tariffs hurt its business. At its prime, Lululemon was the main name in the athleisure industry. 

Today, more names, including popular brands like Nike, Adidas, The Gap, Under Armour, Vuori, and Fabletics have entered into the business.

As a result, Lululemon has transitioned from a company that generated double-digit growth rates to one with single-digit growth rates. The most recent results showed that its revenue rose by 7% to $2.4 billion in the first quarter. 

Its important America’s segment which has higher margins, grew by 3%, while the international business grew by 20% during the quarter. The closely watched comparable sales rose by 1% in Q1, while its income from operations increased to $438 million. 

Lululemon stock has also crashed because of Donald Trump’s tariffs on goods shipped from countries like Indonesia and Vietnam, where it makes most of its products. Talking about these challenges, the CEO said:

“As we navigate the dynamic macroenvironment, we intend to leverage our strong financial position and competitive advantages to play offense, while we continue to invest in the growth opportunities in front of us.”

Read more: Lululemon founder Chip Wilson pledges shares for loans worth over $500 million

LULU navigates tariff headwinds

The impact of tariffs will likely hurt it business substantially in the coming months as the company will have to “eat” some of them. 

This view was confirmed when The Gap, which owns Athleta, published its financial results. It said that its operating margins will plunge to as low a 6.7% this year, much lower from what it made last year. The CEO said:

“The downside of this quarter came from tariffs, which will impact margins going forward. This is a shame as it undoes some of the financial progress Gap has been making on the bottom line.”

Analysts anticipate single-digit revenue growth and constrained margins this year. The average estimate is that the company’s revenue will be between $11.1 billion and $11.3 billion, representing a 8% annual growth rate. 

The only major catalyst for the LULU stock price is that it is no longer priced to perfection. It forward price-to-earnings ratio is 14, much lower than the sector median of 18. This figure is also much lower than its five-year average of 40. 

Lululemon is also repurchasing tons of stock, which has brought the outstanding shares to 114.9 million from the pandemic high of 125.1 million. 

Lululemon stock price analysis

The daily timeframe shows that the LULU stock price has slumped in the past few years, moving from $516 in December 2023 to $200 today. It recently slumped below the important support level at $227, invalidating the forming double-bottom pattern.

The LULU stock price has remained below the 50-week and 200-week moving averages. Therefore, the most likely scenario is where it continues to plunge in the near term. It will then rebound in 2026 as the impact of the tariffs fade. 

Read more: Lululemon shares fall after Wells Fargo warning as brokerages cut forecasts — is the stock a buy at record-low valuations?

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Itaú BBA reiterated its buy recommendations on Brazilian pulp and paper manufacturers Suzano (SUZB3) and Klabin (KLBN11), citing attractive valuations after its estimates update based on the companies’ second-quarter results.

According to local media outlet InfoMoney, the analysis took into account a projected appreciation of the real, as per the bank’s macroeconomic team, along with recent corporate moves.

Today, shoppers unlocked the deal for Dai Estt-2i of Suzano, with Kimberly-Clark making a proposal and Klabin giving up a bad investment in sensitive forestry assets.

BBA’s positive medium-term outlook is based on these developments and an anticipated tightening in the global pulp demand-supply balance by 2026.

Pulp prices are projected to be trading in the region of US$580 by this time.

Nonetheless, it noted that this positive backdrop is tempered by a cautious outlook in the short term, with no catalysts to push shares higher in the next six months.

Suzano: Higher target price and acquisition impact

Itaú BBA boosted Suzano’s target price to R$70 per share by the end of 2026 from R$63, reflecting a potential 33% appreciation.

The advice comes despite the bank’s EBITDA outlook for 2026 being around 12% lower than the market consensus.

Suzano’s earnings estimates, however, have moved. The negative effect of the currency rate is now expected to be mitigated by increased EBITDA from the joint venture with Kimberly-Clark, which is scheduled to close in mid-2026.

Even with that rise, Suzano’s projected R$9.5 billion investment to acquire its part in the Kimberly-Clark joint will limit free cash flow in 2026.

Without this spend, the bank forecasts the company’s cash flow return to be 13%. By 2027, the yield is expected to reach 18%, earning more than US$2 billion.

In terms of valuation, Suzano trades at 5.7 times Enterprise Value to EBITDA in 2026, falling to 4.4 by 2027. These multiples reinforce BBA’s upbeat outlook, despite near-term financial headwinds from acquisitions.

Klabin: Discounted valuation, solid cash generation

Itaú BBA maintained a buy recommendation for Klabin, but decreased the target price from R$25 to R$23 per share by the end of 2026. Even with a lower objective, the bank sees a 25% upside potential.

According to the research, Klabin is currently trading at 6.2 times EV/EBITDA for 2026, significantly lower than its historical average range of 8.0 to 8.5 times. According to BBA, this discount makes the stock desirable.

Klabin is estimated to produce an average free cash flow yield of 7% from 2025 to 2027, excluding the Plateau Project.

This amount of cash generation should result in an average dividend yield of 5.5% over the same time period, strengthening the company’s appeal to income-seeking investors.

Sector outlook: Optimism for 2026, challenges before

Itaú BBA’s sector outlook remains cautiously upbeat. The bank expects the global pulp market’s supply-demand balance to improve dramatically by 2026, with prices forecast at US$580 per ton.

This forecast supports its favourable medium-term outlook for both Suzano and Klabin.

At the same time, the institution highlighted the lack of short-term catalysts that could propel shares higher in the near future.

Currency volatility, continued capital commitments, and macroeconomic concerns continue to weigh on sentiment.

Long-term value plays

Itaú BBA reiterated its buy calls, citing Suzano and Klabin as attractive entry locations for long-term investors willing to look past short-term challenges.

Suzano’s merger with Kimberly-Clark and Klabin’s rigorous capital allocation through asset sales create strategic levers that might unlock value by 2026 and beyond.

While execution concerns exist, the bank’s revised expectations indicate that both firms are well-positioned to profit from a future rebound in pulp prices and stronger industry fundamentals.

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Tech and finance headlines shook markets on Friday as Trump sparked controversy by cutting $4.9B in spending without Congress’s approval, while Elon Musk battles the SEC again over Twitter stock disclosure delays.

The day started with July inflation numbers, which hit a five-month high at 2.9%, complicating the Fed’s September rate cut plans, and Markets remained jittery as tech stocks slump.

A glance at the biggest stories capturing attention today.

Tech stocks slide amid AI concerns

Tech stocks took a beating on Thursday, with Dell and Nvidia both getting hit as the whole sector pulled back.

Dell got hammered the worst, dropping about 7% after they gave a pretty weak outlook for the next quarter. Their AI server sales were especially disappointing, as analysts were expecting a lot more given all the hype around artificial intelligence infrastructure.

Nvidia didn’t escape either, falling about 3% in early trading.

With Nvidia it seems like investors have gotten so used to the company absolutely crushing numbers that anything less feels like a letdown. Plus, their growth is starting to slow down a bit, which has people worried.

What made things worse for Nvidia was news that Alibaba in China is rolling out some new AI chip that could compete with their products.

That’s exactly the kind of competition Nvidia investors have been dreading, especially coming from China where the market is huge. Read full report here

Trump’s $4.9B shockwave hits Washington

Donald Trump just pulled a move that hasn’t been used in almost 50 years, cutting $4.9 billion in federal spending without getting Congress’s permission first.

He is calling it a “pocket rescission,” which is basically a way to let money expire by waiting until the end of the fiscal year to cancel it.

Most of the cuts are hitting foreign aid programs run by the State Department and USAID.

This fits right into Trump’s long-running campaign to slash how much America spends helping other countries. The timing was key as by announcing it so late in the fiscal year, there’s no time for the money to actually get spent.

Congress is not happy about this, and it’s not just Democrats. Some senior Republican senators are also pushing back, saying Trump is stepping on Congress’s constitutional authority to control government spending.

Musk battles SEC over Twitter stake

Elon Musk is trying to get out of that SEC lawsuit over his Twitter stock purchases, asking a federal judge to just throw the whole thing out.

His lawyers are saying the late disclosure was just an honest mistake and that he came clean about owning 9.2% of the company as soon as he realized the error.

The SEC is claiming Musk broke securities rules by waiting 11 days too long to tell investors about his big stake in Twitter back in 2022.

Their theory is that this delay let him keep buying shares at lower prices before everyone knew he was accumulating a massive position.

Musk’s legal team is firing back, calling this government overreach and saying the $150 million fine the SEC wants is way over the top and unconstitutional.

Core inflation hits five-month high

July’s inflation numbers came in higher than anyone wanted to see, with core prices hitting a five-month high.

Overall inflation stayed at 2.6% compared to last year, which was expected, but the core number, the one that strips out food and gas, ticked up to 2.9%.

What’s really interesting is that people kept spending money despite these price pressures. Consumer spending jumped 0.5% from June, helped by people earning more income.

This puts the Fed in a tough spot. They’ve been hinting at cutting interest rates when they meet in September, but inflation sitting at 2.9% is pretty far from their 2% goal. Read full report here

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In a world where investors are used to seeing AI firms report exciting growth in data centre revenue – Marvell Technology Inc (NASDAQ: MRVL) came in shy of expectations on that front in Q2.

Naturally, investors bailed on MRVL shares today, making it close down nearly 20%.

Still, a senior JPMorgan analyst argues the post-earnings decline in Marvell stock is “overdone”, and is actually a buying opportunity for long-term investors.

The semiconductor stock has been a lucrative investment in recent months. Despite today’s crash, it’s up more than 25% versus its year-to-date low in the first week of April.

AI remains a long-term tailwind for Marvell stock

Investors punished MRVL stock on August 29^th also because the firm’s executives issued guidance that did not meet expectations either.

Marvell now sees its revenue coming in at $2.06 billion in the current quarter, slightly below $2.11 billion that analysts had forecast. However, none of it matters much for Harlan Sur.

In a post-earnings research note, the JPM analyst said he’s looking beyond near-term volatility as the longer-term bullish narrative surrounding Marvell shares remains intact.

“Overall, we see a solid setup for the company – driven by the continued recovery in its cyclical businesses and sustained AI growth tailwinds.”

Note that the chip stock also currently pays a small dividend yield of 0.38%, which makes it even more attractive to own for the long term.

MRVL shares are not expensive to own per se

According to the JPMorgan analyst, investors are discounting a robust 58% year-on-year increase in Marvell’s overall revenue to a record $2.01 billion, even with some softness in the data centre unit.

Long-term investors should load up on Marvell shares with some confidence since the company’s custom ASIC partnerships with cash-rich customers like Amazon and Google will eventually send them higher.

Additionally, Harlan Sur also sees next-gen chips like SmartNIC/DPU and eSSD controller ASICs contributing more meaningfully to MRVL’s topline next year. In the near-term, a September rate cut could help this AI stock as well, he concluded.

What’s also worth mentioning is that Marvell stock can now be notched at an attractive valuation.

Its price-to-sales (P/S) multiple currently sits a tad above 11, only – materially below several other AI stocks, including Nvidia, that is going for about 34 at the time of writing.

Should you buy Marvell shares on the post-earnings plunge?

In conclusion, MRVL shares remain worth buying on post-earnings weakness as the chipmaker’s long-term AI narrative remains intact, buoyed by custom chips deals, next-gen product momentum and a compelling valuation.

With cyclical recovery underway and potential macro tailwinds, MRVL may offer patient investors a rare entry point into a high-growth semiconductor story.

That’s why the consensus rating on Marvell stock also currently sits at “buy” with the mean target of about $87, indicating potential upside of 45% from here.

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Super Micro Computer Inc. (NASDAQ: SMCI) saw its shares drop more than 5% on Friday after the artificial intelligence-focused server maker reiterated weaknesses in its internal control over financial reporting.

The disclosure, made in a regulatory filing late Thursday, raised renewed concerns about the company’s governance and ability to deliver timely and accurate financial results.

The selloff put Super Micro on track to shed more than $1 billion from its roughly $26 billion market capitalization if the losses persist.

Internal control issues resurface

In its annual report for the fiscal year ended June 30, Super Micro repeated warnings first flagged in its May quarterly filing, cautioning that the unresolved problems could “adversely affect” its reporting of operational results.

The company added that it continues to work on addressing the deficiencies.

The issue is not entirely new for the San Jose-based server manufacturer.

Last year, Super Micro failed to meet an August deadline to file its annual report.

The delay, followed by the October resignation of its auditor Ernst & Young LLP, fueled skepticism among investors and analysts about the company’s governance and transparency practices.

Although Super Micro eventually filed its long-delayed report earlier this year, the repeated cautionary language has once again pressured investor sentiment.

Valuation and analyst outlook

Despite the disclosure, Super Micro remains a significant player in the high-demand market for servers optimized for artificial intelligence workloads.

The company currently trades at 16.28 times its forward 12-month earnings estimates, according to LSEG data.

That valuation is notably higher than some of its peers, including Dell Technologies Inc. (NYSE: DELL), which trades at 13.12 times earnings, and Hewlett Packard Enterprise (NYSE: HPE), at 10.81 times.

Analyst sentiment on the stock remains divided. Of the 19 brokerages covering Super Micro, seven maintain a “buy” rating, nine suggest “hold,” and three recommend “sell.”

The median price target for SMCI shares is $49, according to LSEG.

The mixed outlook underscores both the opportunities and risks tied to the company’s position in the growing AI infrastructure market, coupled with ongoing governance concerns.

Industry context and rival moves

Super Micro’s disclosure came on the same day rival Dell reported disappointing stock performance.

Dell shares dropped about 10% on Friday, as higher manufacturing costs for AI-driven servers and intensifying competition weighed on its outlook.

While Dell reaffirmed robust demand forecasts for AI infrastructure, investors appeared cautious about profit margins in the increasingly crowded space.

The parallel declines highlight the pressures facing server makers as they navigate surging demand for AI technology alongside challenges in cost management, competition, and regulatory scrutiny.

For Super Micro, the combination of strong market demand and internal financial control concerns presents a complex investment profile—one that leaves analysts and investors divided heading into the second half of the year.

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Intel has secured $5.7 billion in accelerated CHIPS Act funding from the US government.

This is a significant step intended to fast-track the company’s expansion of domestic semiconductor manufacturing amid intense geopolitical and economic pressures.

The payment, which arrived ahead of schedule, reflects a sweeping renegotiation of terms between Intel and the Department of Commerce as they scrapped certain project milestones and granted the government a near-10% equity stake in Intel.

The move underscores an effort to bolster the US chip sector and maintain American leadership in advanced technology.

Details of the accelerated funding deal

The agreement, revealed on August 28, 2025, stems from previous grants Intel had been awarded but had not yet received under the U.S. CHIPS and Science Act.

By renegotiating the deal, Intel gained immediate access to $5.7 billion, while formally issuing 274.6 million shares to the government with additional options if certain conditions arise.

The revised terms loosened several requirements: Intel no longer has to meet earlier project benchmarks to draw the funds as long as the company shows it already invested nearly $7.9 billion in eligible projects.

Government restrictions remain as the funds cannot be used for dividends or stock buybacks, nor can they support expansions in certain foreign countries or effect ownership changes with prohibited parties.

The deal aims to keep Intel’s foundry and contract manufacturing division under clear US control, with the government reserving warrants for further investments if Intel’s stake in the unit drops below 51%.

This $5.7 billion grant brings total federal support for Intel to $11.1 billion, including earlier tranches of CHIPS Act funds and the Secure Enclave defense initiative.

Implications for Intel and the US chip sector

The accelerated funding gives Intel greater flexibility and financial strength to expand and modernize US-based chip manufacturing at a time when global supply chains remain fragile and competition with China and other rivals is fierce.

Intel’s CFO David Zinsner emphasized the government’s equity investment is designed as a powerful incentive for the company to retain its crucial foundry business, supporting both economic goals and national security priorities.

The additional resources are expected to help Intel maintain momentum on projects totaling more than $100 billion in U.S. investments, spanning major sites in Arizona, Ohio, New Mexico, and Oregon.

Yet this landmark deal also raises questions about federal intervention and future oversight in the corporate sector.

By taking a direct equity stake, the government will wield influence not just over Intel’s manufacturing priorities but potentially over its broader business decisions.

This hybrid approach, which includes mixing massive grant funding, shares, and strings attached, may set a precedent for future private-public partnerships in high-tech industries.

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Looking ahead to the first week of September, Wall Street is gearing up for a tense period as September has always been rough for stocks.

But this year has the potential to be different as there’s a lot more at play than usual, and that creates both headaches and opportunities depending on how you look at it.

Here’s what the investors are watching: The Fed is still calling the shots on where this market goes, and every word from Powell gets dissected like it’s the Constitution.

Inflation numbers keep coming in, and they are basically predictions about what the Fed does next.

5 factors that could shape the week ahead

1. Everyone’s expecting the Fed to cut rates by a quarter point in September, and most investors think that’s already baked into stock prices.

The real question is what happens if they say something unexpected or change their tune about what’s coming next.

The Fed has been pretty careful lately, especially with all the talk about the economy slowing down. So any shift in their messaging could really shake things up.

History tells us that rate cuts usually give stocks a boost, but if the economic data that comes out afterward doesn’t show things are actually getting better, that rally could fall apart pretty quickly.

2. Inflation is still the big story after July’s numbers showed prices up 2.7% from last year.

When the new CPI and PPI data come out in early September, everyone will be looking to see if things are actually cooling down or if we’re stuck with these higher prices.

This matters for more than just the headline numbers. If inflation stays sticky, it makes the Fed’s job harder and keeps borrowing costs elevated.

That ripples through to everything else like how much people are willing to spend and how companies are performing.

3. The new tariffs that kicked in this quarter are still creating headaches for everyone trying to figure out what comes next.

The US-China trade deal deadline keeps getting pushed back, which just adds more uncertainty to an already messy situation. Nobody really knows where this is heading, and that makes it tough to plan ahead.

Companies are feeling it in different ways. Manufacturing is getting hit, supply chains are scrambled, and multinationals are trying to figure out how this affects their bottom line.

4. The job market is starting to worry people. The latest forecasts show hiring is expected to slow down, and unemployment might tick up over the next couple of quarters.

When fewer people have jobs or feel secure about their work, they spend less money. And when consumers pull back, it hits company profits pretty directly.

Analysts are already expecting earnings growth for the S&P 500 to drop to around 7.2% this year, which is a noticeable slowdown.

5. September’s historical weakness usually brings rotation into defensive sectors, such as utilities, energy, healthcare, and consumer staples, which traditionally outperform during down markets.

This week, investors are expected to overweight these areas and trim exposure in technology and consumer discretionary stocks, which often lag during choppy conditions.

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A day of major economic maneuvering is underway across Asia, as South Korea unveils a massive spending plan to combat a slowdown, India’s prime minister arrives in Japan to secure a multi-billion dollar investment package, and gold continues its relentless climb toward a new record high.

These strategic shifts are all playing out under the long shadow of the US Federal Reserve, as a key inflation reading today could determine the path of global markets for the rest of the year.

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

South Korea plans 8.1 percent budget hike to aid growth amid tariffs

In a move to revive an economy under pressure, South Korea’s new liberal government has proposed a hefty 8.1 percent expansion of its annual budget for 2026. The 728 trillion won ($522 billion) plan represents a dramatic ramp-up in spending, more than triple the 2.5 percent increase in 2025.

President Lee Jae Myung said the budget will serve as a “priming pump” to drive recovery and growth, with a top priority being a significant boost in investment in artificial intelligence.

The expansionary fiscal policy marks a sharp contrast to the previous administration and will be funded by a record 232 trillion won in new bond issuance.

Gold climbs toward record high as traders brace for key inflation data

Gold is heading for another weekly gain, pushing it tantalizingly close to a new record high. The precious metal was trading steadily around $3,415 an ounce early Friday in Asia, as investors braced for a crucial US inflation reading.

The personal consumption expenditures (PCE) print, the Fed’s preferred gauge, is forecast to accelerate, a scenario that could complicate the central bank’s path to cutting interest rates.

However, recent comments from Fed Governor Christopher Waller, who signaled support for a September rate cut, have kept the bulls in charge. Swaps markets are now pricing in around an 85 percent chance of a rate cut next month.

India’s Modi seeks over $68 billion in Japan investment, security pact

Indian Prime Minister Narendra Modi is in Japan for a two-day trip, where he is expected to secure investment pledges of more than 10 trillion yen ($68 billion) as he seeks to bolster India’s economy against the sting of soaring US tariffs.

According to officials in New Delhi, the two nations are also expected to sign a significant economic security pact covering cooperation on semiconductors, critical minerals, and artificial intelligence.

Modi is scheduled to meet his counterpart, Shigeru Ishiba, before traveling to China for a major security summit, where he is expected to hold a rare bilateral meeting with President Xi Jinping.

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