South Africa’s sugar farmers face a “double whammy” from cheap imports and US tariffs, which have been eating into their earnings. 

Nkosinathi Msweli’s sugarcane farm in KwaDukuza, a predominantly rural and impoverished region on South Africa’s eastern coast, has for three decades represented a consistent, albeit modest, economic achievement, providing employment for eight full-time staff and 30 seasonal workers, according to a Reuters report.

However, cheap sugar imports had already begun to erode his profits when US President Donald Trump imposed a substantial tariff on South African imports, resulting in what Msweli described as a “double whammy” that now compels the 53-year-old to confront difficult decisions.

“All in all, I will have to cut about 20 workers from this current season,” Msweli was quoted in the report.

The person that is here in the field maybe has 10 lives that he’s supporting.

South Africa sugar industry

Supporting over 300,000 jobs directly and indirectly, South Africa’s sugar industry is valued at approximately 25 billion rand ($1.42 billion). 

This sector plays a crucial role in a nation grappling with one of the highest unemployment rates globally.

In South Africa, a nation where agricultural land ownership remains primarily in the hands of a white minority, a direct consequence of the country’s apartheid history, the nearly 26,000 small-scale farmers are predominantly Black, working alongside 1,100 large-scale growers.

However, the sector is increasingly vulnerable to headwinds due to a confluence of market forces and political factors.

South African farmers face stiff competition from inexpensive imports, particularly from nearby Eswatini, which enjoys a competitive edge due to preferential access under a regional customs agreement. 

Global production weigh on prices

Adding to their difficulties are the low global sugar prices, a consequence of abundant harvests in key producing nations such as India and Brazil.

The imposition of a 30% tariff by the Trump administration on imports from South Africa is poised to deliver a substantial blow to the nation’s export economy as well. 

This significant tariff increase could severely impact various sectors within South Africa that rely heavily on international trade, leading to reduced demand for their products in the American market. 

The ripple effects of such a policy could include a decline in export revenues, potential job losses in export-oriented industries, and a broader slowdown in economic growth. 

Possible trade agreement 

Under the African Growth and Opportunities Act, the US previously allowed South Africa to export 24,000 metric tons of sugar duty-free.

The US market, despite accounting for only 5% of South Africa’s total sugar exports, has been crucial for the South African Cane Growers’ Association.

It provides high prices, which helps to maintain domestic employment.

While the extent of potential job losses is still uncertain, the industry association is pressing the government to finalise a trade agreement with Washington to protect exports to the US.

“If we don’t have good trade relationships with the US, it’s going to be detrimental, not just to our sector, but to many others as well,” Pratish Sharma, a member of the association’s board, was quoted in the Reuters report.

A potential deal, if it materialises, will likely be too late for the current season. Msweli, calculating the impending costs, anticipates significant hardship.

He said:

All this is going to cause starvation and hunger.

The post Job losses loom for South African sugar farmers amid trade challenges appeared first on Invezz

Shares of American Eagle Outfitters jumped nearly 24% in premarket trading on Thursday after splashy celebrity campaigns featuring actor Sydney Sweeney and National Football League star Travis Kelce boosted demand for the apparel retailer’s jeans and fall collections.

The surge marked one of the strongest single-session rallies in the company’s history, reversing months of investor pessimism about sluggish apparel sales.

Chief marketing officer Craig Brommers said on a post-earnings call on Wednesday that the company’s fall denim push, branded under the slogan “Sydney Sweeney Has Great Jeans,” delivered “unprecedented new customer acquisition” within just six weeks of its launch in late July.

Executives also said Sweeney’s signature jeans sold out within a week.

The campaign included high-profile activations such as a Sphere takeover in Las Vegas, 3-D billboards in New York and Los Angeles, and a partnership with HBO Max’s “Euphoria.”

“Consumer acquisition is coming from every single county in the US. This momentum is national, and it is pervasive,” Brommers said.

Search interest for American Eagle spiked 186% in the week ending August 3 compared with the prior week, according to media research firm Carma.

Website traffic also grew 15% in July versus June, underscoring the impact of the campaign.

Travis Kelce collaboration adds to momentum

American Eagle also credited a limited-edition collaboration with Kansas City Chiefs tight end Travis Kelce’s Tru Kolors line for boosting foot traffic and delivering the company’s best Labor Day sales to date.

The partnership, announced shortly after Kelce’s engagement to pop star Taylor Swift captured widespread attention, has been a driver of both consumer awareness and media buzz.

Brommers said collaboration with Kelce is building momentum in the men’s category.

The retailer’s men’s business started to gain strength in July, Brommers says, and has accelerated in recent days with the launch of the new partnership.

“We’ve seen incredible interest on this first drop and expect even more in the second drop,” he says. “Travis is front and center in the national conversation,” he said.

Chief executive Jay Schottenstein told analysts that brand awareness, comparable sales and consumer engagement were all rising as a result of improved product offerings and the celebrity tie-ins.

“We have seen periods of very strong demand from both campaigns, fueling positive traffic in August, which was up consistently throughout the month,” Schottenstein said.

Analysts cautious on sustainability

While investors cheered the immediate sales boost, analysts urged caution on whether American Eagle can sustain momentum.

“A 25% leap in extended trading also bakes in a lot of faith that the celebrity-fuelled demand burst holds through the holiday season, which makes the move partly victory lap and partly future tense,” said Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors.

Others noted the retailer’s exposure to tariffs and its competitive pressures from fast-fashion rivals.

“The retailer has little room to pass costs directly from tariffs to shoppers who are already highly price-conscious and will likely have to absorb some of the margin pressure,” said Natasha Nair, analyst at Third Bridge.

American Eagle said it expects tariffs to cost it around $20 million in the third quarter, and $40 million to $50 million in the fourth quarter.

Nair added that competitors like Zara and Shein can also quickly copy trends and undercut on price, making it harder for American Eagle to defend its market share.

Broader retail challenges remain

Like other apparel retailers, American Eagle has been navigating weaker discretionary spending as US consumers tighten budgets on clothing and accessories amid economic uncertainty.

The company pulled its full-year outlook in May, citing volatility in consumer spending, but now expects comparable sales to rise modestly in the third and fourth quarters.

Executives said American Eagle is diversifying its supply chain to offset tariff pressures.

The company now expects China to account for a single-digit percentage of production, while shifting more sourcing out of Vietnam.

Pricing adjustments, supplier negotiations and logistics changes are also part of its strategy to defend margins.

Reactions to Sweeney’s campaign

Sweeney’s campaign has not been without controversy. Some longtime female shoppers suggested the tone of the advertisements strayed from American Eagle’s traditional female-focused marketing.

Yet others, including public figures, praised the approach. Former US President Donald Trump posted on Truth Social that Sweeney had “the hottest ad out there.”

Source: Truth Social

Trump’s praise sent the share price of American Eagle soaring by 23% in a single day last month.

American Eagle’s market share rose from 18.5% on August 2 to 19.5% on August 9, before easing back to 18.9% by late August, according to data from Consumer Edge.

The company has also partnered with other young celebrities to appeal to Gen Z shoppers, including tennis player Coco Gauff and actor Jenna Ortega.

Financial results show mixed picture

For the fiscal second quarter ended August 2, American Eagle reported net income of $77.6 million, up slightly from $77.3 million a year earlier.

Total net revenue fell 1% to $1.28 billion, but still topped Wall Street estimates of $1.24 billion, according to FactSet.

Comparable sales across the company declined 1%, with sales down 3% at the American Eagle brand but rising 3% at its Aerie chain.

Executives said they expect sales growth to stabilize through the remainder of the year, driven by the high-profile campaigns and back-to-school demand.

Still, with stock gains hinging on the durability of celebrity-driven momentum, analysts say the results of the holiday season will be critical in determining whether American Eagle’s marketing gambit pays off.

The post American Eagle stock soars 24% as Sydney Sweeney’s ‘Great Jeans’ campaign boosts sales appeared first on Invezz

JPMorgan is making a bold entry into Germany’s crowded digital banking sector, hoping its global brand and technology investments can help it break through fierce competition and regulatory hurdles.

The US banking giant aims to launch its Chase digital retail bank in Germany by the second quarter of 2026, a move that could reshape the local banking landscape if successful.

American giant’s high-stakes entry

JPMorgan Chase is gearing up to launch its digital bank in Germany in early 2026, its biggest retail banking push in Europe so far.

Germany’s retail market is the largest on the continent, and digital banking there is expected to expand from about $106 billion in 2024 to nearly $174 billion by 2033, growing at a steady clip of around 6% a year.

It’s a tempting market, but also a crowded one as Deutsche Bank still holds sway, while fintech players like N26 and Revolut already control roughly 70% of the digital space.

JPMorgan is not starting from scratch. It already services major German corporations and holds local regulatory licenses, giving it a foundation for the consumer rollout.

The bank is betting big on its annual technology investment of $17–18 billion and global digital expertise, which powered the successful UK launch of Chase in 2021, where it quickly attracted 1.6 million customers and $19 billion in deposits.

For Germany, JPMorgan is hiring local engineers and product managers to tailor products for German tastes and will start with savings and payments products, expanding into lending as it gains traction.

Can JPMorgan win where others struggled?

Despite its resources, JPMorgan faces daunting challenges in Germany’s famously low-margin, tightly regulated market.

Neobanks and traditional lenders have set high standards for user experience and pricing, competing aggressively for customers who often lack deep loyalty to any brand.

Regulatory compliance, especially under new rules like the Digital Operational Resilience Act (DORA) and the revised Payment Services Directive (PSD2), means JPMorgan will need robust cybersecurity and authentication measures from day one.

High customer acquisition costs and a fragmented market leave little margin for error.

JPMorgan’s strategy is expected on hinge on leveraging its corporate relationships to cross-sell to retail clients and using its superior tech to deliver innovative, efficient user experiences.

Many analysts see JPMorgan’s Germany play as ambitious but well-calculated.

JPMorgan CEO Jamie Dimon acknowledged the challenges, but emphasized the digital era is leveling the field for global retail banks in ways not previously possible.

Market observers point to the bank’s $17–18 billion annual technology budget and hybrid strategy, anchoring digital growth on existing corporate relationships as major structural advantages.

Yet, skepticism remains: as Henry Rivers of AI Invest notes, “The German market is fragmented, highly regulated, and historically unprofitable. To succeed, JPMorgan must combine disciplined cost control with real product innovation that resonates with local tastes.”

The post JPMorgan bets big: can an American digital bank win over Germany’s crowded market? appeared first on Invezz

A recent analysis of over a billion job postings by LightCast, a labour insight platform, has revealed a significant increase in the demand for artificial intelligence skills, with these roles also commanding higher average salaries.

Although there are increasing concerns that artificial intelligence is displacing jobs, the outlook for the labour market is not entirely negative, especially for individuals possessing AI competencies.

The July study revealed that many companies are employing workers who can utilise artificial intelligence, rather than replacing human roles with AI, according to a CNBC report.

AI skills imperative

LightCast, a labour insight platform, analysed over a billion job postings and discovered a surge in demand for AI skills.

Their analysis also revealed that jobs requiring AI skills offer higher average pay.

Elena Magrini, head of global research at LightCast, told CNBC:

Job postings are increasingly emphasizing AI skills and there are signals that employers are willing to pay premium salaries for them.

Job advertisements specifying at least one AI skill offered salaries that were, on average, 28% higher than those without any AI skills, equating to an annual increase of approximately $18,000.

For positions requiring a minimum of two AI skills, this premium rose to 43%.

The study identified customer and client support, sales, and manufacturing and production as the three fields commanding the largest premiums.

Easier to access

LightCast’s report identified over 300 AI skills, encompassing areas from AI ethics and generative AI to machine learning. 

The study revealed that distinct career paths necessitate fundamentally different AI skill sets. 

For instance, transportation roles often require autonomous driving expertise, while maintenance positions prioritise robotics capabilities. 

Although many AI skills demand significant technical proficiency, the most frequently listed ones were often general, such as competence in using ChatGPT or Microsoft Copilot.

According to Bridget Wong, head of human relations at Accenture Singapore, these fundamental skills are increasingly common and available in the job market.

Demand in non-tech jobs

The LightCast study revealed that the demand for AI skills is surprisingly higher in non-tech sectors compared to the IT and computer science fields, which are typically linked with AI.

The study also found a substantial increase of 800% in job postings mentioning generative AI skills for non-tech roles since 2023, the year OpenAI introduced ChatGPT.

Although IT and computer science continue to lead in sectors requiring AI skills, marketing and public relations secured the second position. This was followed by science & research, and social analysis and planning.

Magrini added: 

It’s not just software developers or the data scientists that are benefiting from AI skills; It’s something people in everything from marketing to finance to HR should be thinking about.

Magrini emphasised that AI skills are becoming essential across all job functions and career paths, though the pace of adoption varies.

Therefore, a foundational understanding of AI is crucial for everyone.

AI is coming, but we don’t need to be scared. We need to be prepared.

The post AI skills boom: demand surges, salaries rise in non-tech roles appeared first on Invezz

Putting aside a two-day sell off as July passed into August, the US stock market managed to hold up pretty well through the late summer doldrums.

All the US majors posted gains for August, with the S&P 500 celebrating the unofficial end of summer by crossing above 6,500 for the first time ever.

Investors forgot about tariffs and US President Trump’s ongoing trade war(s).

Instead, they reacted positively to what turned out to be a perfectly respectable second quarter earnings season, which was effectively topped off by some solid results from Nvidia.

Not only is this the most valuable corporation in history, as measured by market capitalisation, but it is also, and relevantly, the company at the vanguard of the development of generative AI.

Interestingly, Nvidia’s stock price has struggled to maintain upside momentum since it published its results in late August.

The daily chart shows quite clearly how Nvidia repeatedly ran into resistance around its all-time highs, just north of $184, throughout last month.

Worse, it gapped lower following US ‘Labor Day’ on 1st September and began testing an area of mild support around $171.

Could this be something for the bulls to worry about? Quite possibly. After all, Nvidia accounts for around 8% of the S&P 500 by market cap.

It is also widely held, and a huge favourite with the increasingly significant cohort of retail traders, as well as seasoned day traders.

While its exalted position is protected to a great extent as no other chipmaker can do what Nvidia does, the company is as much subject to investor sentiment as any other in the NASDAQ and S&P.

Analysts have many arguments to justify its high valuation. But when sentiment switches from positive to negative, it can be hard to find a hiding place.

As investors struggle to shrug off the summer and embrace autumn, there are a few potential hurdles to clear.

Lurking in the background is the Trump administration’s ongoing trade war with the rest of the world.

But the President is also keeping busy in other areas, one being his repeated attacks, personal and professional, on members of the US Federal Reserve.

His ‘firing’ of Lisa Cook for alleged mortgage fraud is now a case for the courts.

Meanwhile, he is in the process of installing his favoured candidate, Stephen Miran, as a replacement as governor for Adriana Kugler who resigned last month.

That should be confirmed soon. In the meantime, Mr Trump continues to harass Fed Chair Jerome Powell, calling him a dreadful appointee (appointed by Trump himself) who acts politically by deliberately keeping interest rates high to spite President Trump personally.

And now it appears to be coming to a head.

Mr Powell made a keynote speech at the Jackson Hole Economic Symposium towards the end of August.

This was immediately interpreted as very dovish, finally signalling that the US central bank was prepared to resume rate cuts at its September meeting.

This is despite the fact that every inflation measure is significantly above the Fed’s 2% target, and going in the wrong direction.

Mr Powell has blamed tariff uncertainty, which may be a factor.

But it was July’s appalling and unexpected Non-Farm Payrolls which really set the cat amongst the pigeons.

The data was so poor, and the downward revisions so steep, that the President decided that the numbers were fake.

So he fired Erika McEntarfer, the Biden-appointed head of the Bureau of Labor Statistics (BLS) and lined up one of his own fanboys, EJ Antoni, as her successor.

Before the Fed’s FOMC announces its rate decision on 17th September, there are two vital inflation updates, CPI and PPI.

These are important. But perhaps the bigger concern is the Non-Farm Payroll update on 5th September.

Expectations are for a modest payroll gain of around 75,000, and this should keep the probability of a 25 basis point rate cut at close to 100%.

So, for Mr Trump to get his rate cut, perversely he needs another set of bad numbers.

And if they’re really bad, we may hear speculation that the Fed could cut by 50 basis points, just as they did last year.

But what would really upset the apple cart is a significantly stronger number.

That could see the chances of a cut slashed, which, in turn, could exert some heavy selling pressure across global equities. All outcomes are in play.

(David Morrison is a Senior Market Analyst at Trade Nation. Views are his own.)

The post Could September’s US non-farm payrolls derail the Fed? appeared first on Invezz

Shares of Salesforce slid nearly 7% in premarket trading on Thursday after the cloud software provider issued a softer-than-expected third-quarter revenue forecast, raising fresh concerns about when its large investments in artificial intelligence will start to deliver financial returns.

The stock drop came despite stronger-than-expected second-quarter earnings and an expanded $20 billion share buyback program, underscoring investor unease over slowing growth.

Salesforce projected revenue between $10.24 billion and $10.29 billion for the third quarter, with the midpoint falling short of Wall Street expectations of $10.29 billion, according to data from LSEG.

The muted outlook suggested that businesses remain cautious with IT spending amid broader economic uncertainty, even as companies race to deploy AI tools.

“Overall, there’s a sense of frustration in the market,” said Melissa Otto, head of research at S&P Global Visible Alpha.

CRM stock falls despite earnings beat

For the quarter ended August 2, Salesforce posted revenue of $10.24 billion, up 10% from a year earlier and above analysts’ forecasts of $10.14 billion.

Subscription and support sales grew 11%. Net income rose to $1.89 billion, or $1.96 per share, from $1.43 billion, or $1.47 per share, a year earlier.

Adjusted earnings per share came in at $2.91, topping analyst estimates of $2.78, according to FactSet.

Salesforce reaffirmed full-year revenue guidance of $41.1 billion to $41.3 billion and forecast adjusted earnings per share between $11.33 and $11.37, broadly in line with expectations.

Agentforce adoption raises questions

The company has rapidly integrated AI into its cloud platforms, led by its flagship Agentforce assistant, launched in October 2024.

Salesforce said more than 12,500 Agentforce deals had been signed since launch, with about 6,000 converting to paid customers.

But some analysts noted that competition from AI-native applications and custom-built systems could limit Salesforce’s pricing power.

On an earnings call, Chief Operating and Financial Officer Robin Washington stressed the company was “doubling down on innovation” and remained confident in its ability to monetise AI over time.

“It is early days in the adoption cycle, but we are really confident in our strategy to monetise AI,” she said.

Buybacks and acquisitions in focus

Alongside its results, Salesforce raised its share buyback authorisation by $20 billion, bringing the total to $50 billion.

Chief Executive Marc Benioff signalled that the company would continue pursuing acquisitions to expand its product lineup and strengthen margins.

“If we see great entrepreneurs or great technology or something that just blows our mind, we’re going to buy it,” Benioff said.

In May, Salesforce acquired data management platform Informatica for about $8 billion, marking a return to large-scale dealmaking after a period of restraint.

Valuation and market reaction

Even after the selloff, Salesforce trades at about 21 times forward 12-month earnings, below Microsoft’s 31 times and Oracle’s 31 times, according to LSEG.

Some analysts said the valuation discount leaves room for upside if AI-driven growth accelerates.

“Second-quarter results and positive company commentary are sufficient at this juncture, considering CRM shares are trading near a historically low valuation level and deep discount to software peers,” JP Morgan analysts wrote, while lowering their price target to $365 from $380.

Still, with shares down roughly 24% so far this year, investors remain cautious.

As JP Morgan noted, “Growth has not inflected yet and investors are thus not seeing an imminent need to revise their thought process.”

The post Salesforce stock tumbles after soft revenue outlook raises AI payoff concerns appeared first on Invezz

Most major commodities were in the red on Thursday, with oil extending its 2% decline from the previous session.

Gold and silver prices also fell after a sharp rally over the last few trading sessions.

Among industrial metals, copper also extended its losses from Wednesday as the red metal struggled to break out.

Oil prices extend losses

On Thursday, oil prices continued their downward trend, following a more than 2% drop in the previous session.

This decline occurred as investors anticipated the upcoming OPEC+ meeting, where producers are expected to discuss a further increase in output targets.

The Organization of the Petroleum Exporting Countries and allies’ eight oil-producing nations plan to discuss potential production increases for October at a meeting this Sunday.

The group aims to regain market share by producing more oil.

According to PVM analyst Tamas Varga, an OPEC+ production increase would strongly indicate that reclaiming market share is prioritized over supporting prices.

OPEC+ previously committed to increasing output targets by approximately 2.2 million barrels per day between April and September. This was in addition to a 300,000 bpd quota increase specifically allocated to the United Arab Emirates.

Middle Eastern oil prices have been the strongest globally in recent months, even with accelerated production increases.

This trend, as per a Haitong Securities report, has strengthened the resolve of Saudi Arabia and other OPEC members to raise output.

US macroeconomic data also weighed on prices, with July’s job openings hitting a 10-month low. This signals an easing labor market, which supports expectations of a Federal Reserve interest rate cut this month.

Additionally, US crude stockpile data, typically released on Wednesdays, is anticipated on Thursday this week due to Monday’s US holiday.

Markets are keenly awaiting this government report to assess demand strength from the world’s largest oil consumer.

Gold prices retreat

Gold prices fell on Thursday but remained near $3,600 per ounce.

Gold prices experienced a dip due to some profit-taking after reaching record highs, as the dollar stabilised.

Investors are currently awaiting further indicators on the US labor market and potential interest rate cuts, which are expected in the coming days.

Gold finally broke above the $3,450 resistance level at the beginning of this week, a barrier it had faced since early May. Monday’s breakthrough continued the upward trend that started in late August.

“Prices have risen steadily ever since, lifting the daily MACD off neutral levels, although it is still far from being overbought,” said David Morrison, senior market analyst at Trade Nation.

Despite this, gold may have to pull back from recent highs before it can resume its strong rally.

Gold demand increased due to uncertainty surrounding US trade tariffs after an appeals court deemed most of President Donald Trump’s tariffs illegal.

Trump announced his intention to appeal the decision to the Supreme Court, stating that any ruling against his tariffs would negatively impact recent trade agreements.

Concerns about the Federal Reserve’s independence persisted amidst a legal dispute over Trump’s efforts to dismiss Fed Governor Lisa Cook.

However, these concerns were somewhat alleviated when Stephen Miran, Trump’s nominee for Fed Governor, pledged to uphold the central bank’s political independence.

Silver, copper slide

Silver experienced a notable pullback overnight, retracting below the $41 mark after reaching a fresh fourteen-year high on Wednesday.

This recent movement signals a temporary halt in its otherwise robust rally that has captivated market attention.

Despite this brief slip, the precious metal continues its upward trajectory, steadily narrowing the gap towards its all-time peak, which stands just shy of $50 per ounce, achieved in April 2011.

Benchmark copper futures on the London Metal Exchange dropped 1% to $9,887.05 per ton, pulling back from a nearly six-month high reached earlier this week.

Meanwhile, COMEX copper futures also saw a decline, falling 1.1% to $4.5685 per pound.

This week, copper prices surged on the back of growing speculation that China, the world’s largest importer, would introduce further stimulus measures to boost its domestic economic growth.

Such a move is anticipated to increase the country’s demand for copper.

The post Commodities wrap: oil, bullion and copper slide; all eyes on OPEC+ meeting appeared first on Invezz

Dow futures were up about 58 points on Thursday, trading near 45,350.00, showing a bit of cautious optimism ahead of key labor market data.

S&P 500 futures ticked higher by 15 points to around 6,471, while Nasdaq futures added roughly 70 points to 23,645.

Moves were mixed across the board, with the mini contracts mirroring those levels. Overall sentiment stayed muted as traders waited on private payrolls and tomorrow’s nonfarm jobs report.

Expectations for a Fed rate cut this month are keeping the bias slightly bullish, but most investors are still holding back until the numbers hit.

5 things to know before Wall Street opens

1. Heading into Thursday’s session, sentiment stayed cautious with traders waiting on fresh labor market data, including private payrolls and services numbers.

Wall Street’s mood is being pulled in two directions with optimism around mega-cap names like Apple and Alphabet on one side, and worries over weak guidance from Salesforce plus choppy retail earnings on the other.

The data will be key in shaping expectations for Fed rate cuts, which most still see happening this month. For now, positioning looks measured, with everyone bracing for numbers that could tilt the market either way.

2. In premarket trading, American Eagle Outfitters is a top gainer, surging by about 23% following an upbeat sales forecast and strong performance linked to celebrity partnerships.

Conversely, Salesforce is under pressure, down 6.6%, as weak revenue guidance raises doubts about the monetization of its AI enterprise offerings.

Figma’s shares plunged over 15% after a disappointing first earnings report post-IPO, highlighting ongoing volatility in the tech sector.

AI-related stocks such as Credo Technology are receiving positive momentum based on increased demand for AI infrastructure.

3. Technical readouts on the major US indices paint a mixed, cautious picture.

The Nasdaq 100 and S&P 500 are still holding above key support zones and trying to claw back their 50-day moving averages, but those levels remain tough resistance for any sustained rally.

Momentum gauges point more toward consolidation, with the risk of choppier moves depending on how the next batch of economic data lands.

4. Global signals are sending a mixed message this morning. Asian markets were uneven, while Europe traded a bit firmer.

Oil’s been under some pressure, and both gold and Treasury yields are showing the kind of cautious positioning you’d expect with geopolitical tensions in the background.

All of that feeds into a fragile balance shaping Wall Street’s early mood. The macro backdrop just adds another layer for traders to weigh as they line up US data against the bigger global picture.

5. Earnings season is still steering a lot of the market’s mood. On deck today are reports from names like VersaBank, Ciena, and G-III Apparel Group, with expectations all over the place.

Any surprises or shifts in forward guidance could easily stir up volatility. Investors are keeping a close watch, since corporate results remain a big tell on changing consumer demand and fast-moving tech trends.

These updates will feed straight into how Wall Street is reading sector strength or weakness, and by extension, the broader market tone.

The post Dow futures edge higher ahead of key data: 5 things to know before Wall Street opens appeared first on Invezz

Figma stock tanked 15% as post-IPO shine dimmed fast. After its blockbuster debut back in July, the design software firm took a heavy hit on Thursday when second-quarter earnings came in below lofty expectations.

Revenue growth was solid, but not enough to satisfy the hype, and the stock tumbled more than 15% in premarket trade, wiping away much of the early enthusiasm.

It’s a reality check for investors, as the market starts to rethink Figma’s valuation in what’s already a shaky tech environment.

Figma stock: Earnings highlight growth but not enough to satisfy investors

Figma’s Q2 numbers looked solid on paper as revenue was up 41% year-over-year to $249.6 million, a touch above the $248.8 million analysts were looking for.

Adjusted EPS landed at $0.09, just a cent better than forecasts. But even with that momentum, the results weren’t enough to keep the post-IPO rally alive.

Figma stock has now slid more than 50% from its early peak, with the market cap down about $5 billion from Wednesday’s $33.2 billion close.

The experts are also pointing towards the end of the employee lock-up period, which could flood the market with more shares, adding to the selling pressure.

With just 41% of shares currently in the float, liquidity is thin, which makes the stock especially prone to big price swings. On top of that, Figma’s valuation looks stretched as its P/E is sitting near 299 times projected earnings, miles above established rivals like Adobe.

That kind of premium only works if growth keeps exceeding expectations, and investors are starting to question if it can.

What analysts say?

Piper Sandler’s analyst summed it up by saying the recent swings suggest volatility is likely to stick around in the near term.

The analyst suggested investors could look for chances to add on weakness but cautioned that the market is still wrestling with Figma’s rich valuation and growth outlook.

Others in the industry point out the tougher road ahead as Figma still has to prove it can turn strong growth into lasting profitability while layering in AI tools and navigating pricing pressures in a crowded design software space.

Even with the recent stumble, a lot of analysts are still upbeat on Figma’s longer-term story, pointing to its expanding lineup of products and a steadily growing customer base.

That said, they warn investors should expect more bumps along the way as the company works through the shift from high-growth startup to a steadier public player.

The next few quarters will be key as Figma has to prove it can live up to the lofty IPO valuation while facing tighter scrutiny and a changing market backdrop.

The post Figma stock plunges 15% after earnings miss: here’s why analysts are pressing SELL appeared first on Invezz

Kraft Heinz Co (NASDAQ: KHC) is sinking this morning after announcing plans of a “split” that unwinds much of the mega-merger that legendary investor Warren Buffett engineered in 2015.

Naturally, the “Oracle of Omaha” is disappointed in the management’s decision. His conglomerate holding firm, Berkshire Hathaway, is currently the largest KHC shareholder with a 27.5% stake in the multinational food giant.

Including today’s decline, Kraft Heinz stock is down nearly 20% versus its year-to-date high.

Why Kraft Heinz split isn’t sitting well with Buffett

Buffett’s disapproval stems from a broader philosophical stance on long-term value creation.

In an interview with CNBC this morning, the influential investor agreed that Kraft Heinz merger didn’t live up to expectations, but said dismantling the company won’t necessarily solve its issues either.

“You don’t fix a mistake by making another one,” he implied. According to Buffett, the announced split signals a reactive strategy rather than a thoughtful turnaround.

He’s held Kraft Heinz shares since the merger, never trimming Berkshire’s stake, which makes the split feel like a repudiation of the original vision.

Buffett successor, Greg Abel, reportedly echoed the sentiment as well, expressing disappointment directly to Kraft Heinz leadership on Tuesday.

Why Kraft Heinz decided in favour of a split

Kraft Heinz’s decision to split its business into separate consumer and foodservice units reflects mounting pressure to unlock shareholder value and improve operational focus.

Such a move, it believes, could help streamline management, reduce complexity, and allow each segment to pursue tailored growth strategies.

The packaged food industry has faced headwinds from changing consumer preferences, inflationary pressures, and margin compression.

By separating its brands and distribution channels, Kraft Heinz hopes to become more agile and responsive.

While the company hasn’t detailed the full mechanics of the split, executives argue that the Kraft Heinz split will “better position each business for long-term success” – a claim that remains to be tested, though.

Should you invest in Kraft Heinz stock today?

Kraft Heinz split may offer short-term trading opportunities, but long-term investors should tread carefully.

Buffett’s skepticism isn’t just sentimental – it reflects concerns surrounding execution risk, brand dilution, and whether the split will truly unlock value.

Kraft Heinz still faces stiff competition, evolving consumer tastes, and margin pressures. While the breakup could lead to leaner operations, it also introduces uncertainty around leadership, strategy, and capital allocation.

For now, KHC shares remain under scrutiny. Investors should watch for clarity on the split’s structure, financial impact, and whether either entity can deliver sustainable growth. Until then, Kraft Heinz may be more of a wait-and-see than a buy-and-hold.

That said, Kraft Heinz stock does currently pay a rather lucrative dividend yield of more than 6.0%, which makes it appealing to income-focused investors as a long-term holding.

The post Kraft Heinz split: here’s why Warren Buffett is ‘disappointed’ in it appeared first on Invezz