Super Micro Computer, a server maker and major AI player, was attacked by Hindenburg Research, that released a damning report alleging accounting manipulation, undisclosed related-party transactions, and potential sanctions evasion. The short seller's investigation, which spanned three months and involved interviews with former employees, highlighted the company rehiring executives involved in a previous accounting scandal and reverting to questionable practices, as well as issues surrounding the company's touted liquid cooling technology. The allegations come at a crucial time for Super Micro, whose stock has surged from $80 to around $550 per share due to its involvement in AI server production with Nvidia. The Hindenburg report has cast a shadow over its recent success, triggering Super Micro's stock to initially drop 8% before recovering to a 2% loss.

EQUITY

U.S. Index gains were modest on Tuesday, closely watching for upcoming inflation data and Nvidia's earnings report, expected after the U.S. market close on Wednesday. It's expected to greatly impact the entire market, with traders bracing for a possible 10% swing in Nvidia's shares. Paramount Global's shares fell after a rival buyout offer was withdrawn, while Insulet saw a significant gain following FDA clearance for its insulin delivery system.

GOLD

Gold prices are fluctuating, staying below $2,530 per ounce after hitting a record high as markets are awaiting fresh economic data, including the PCE index and Q2 GDP figures, to assess the Fed's next moves. The market is currently pricing with a high probability of a rate cut in September, with expectations of further cuts throughout the year.

OIL
Oil market has been challenging, with prices expected to continue downtrending over Chinese demand and economic slowdowns even as a rate cut is coming. The American Petroleum Institute reported a significant drawdown in U.S. oil inventories, which has provided some support to oil prices. Even with fewer rigs, the U.S. tight oil sector, especially in the Permian Basin, has proven resilient in 2024, particularly if crude prices stay stable.

CURRENCY

The U.S. dollar index has been trying to recover after hitting a 13-month low due to Fed Chair Powell's confirmation of possible interest rate cuts, with markets fully pricing in a cut for September. The debate now centres on whether it will be a 25 or 50 basis point reduction, with current pricing indicating a 36% chance for the larger cut. The weakness benefited other currencies, with the British pound reaching its highest level since March 2022 and the Australian dollar hitting an eight-month high following inflation data.