U.S.–Russia Talks End, Risk-Off Sentiment Still Supported

Market Overview

Looking back at last week, U.S. economic data dampened market optimism, while President Trumps renewed threats of steep tariff hikes weighed on equities. Semiconductor stocks were hit hardest, with the Philadelphia Semiconductor Index dropping more than 2%, dragging both the S&P 500 and the Nasdaq into negative territory.

In commodities, safe-haven gold recorded its first weekly decline in three weeks, with futures tumbling over 3% — the steepest weekly loss in three months. Ahead of the U.S.–Russia “Trump-Putin Summit,” sentiment remained cautious. Oil prices pulled back, with WTI crude falling as much as 2% to near a two-month low, marking its second straight weekly decline.

Hot Topics Ahead

Consumer Confidence Unexpectedly Weakens

The University of Michigan‘s preliminary August survey showed U.S. consumer sentiment falling for the first time since April, slipping from a five-month high. Both short- and long-term inflation expectations rose, underscoring persistent concerns over tariff impacts. Sentiment and inflation indicators both came in below economists’ forecasts.

Trump Signals Tariff Decision on Semiconductors Within Two Weeks

En route to Alaska for his meeting with Putin on Friday, Trump announced that new semiconductor tariffs would be unveiled within two weeks, with potential rates as high as 200%–300%. The lack of clarity on scope and details has heightened uncertainty for the sector and investors. The news triggered broad weakness in U.S. chip stocks — Applied Materials plunged more than 13.7% intraday, while the Philadelphia Semiconductor Index slid over 1.9%.

Key Focus (GMT+8)

22:00 — U.S. August NAHB Housing Market Index