Welcome to Vested Shorts,
Markets End August Higher Despite Inflation Concerns
U.S. stocks finished August with solid gains, extending a four-month winning streak even as investors turned cautious at week’s end.
The S&P 500 rose nearly 1.5% in August, the Dow gained close to 2.5%, and the Nasdaq added roughly 1.6%. The momentum was fueled by strong earnings, including from Nvidia, which reported 56% revenue growth last quarter.
The week also brought fresh inflation data. Core PCE, the Federal Reserve’s preferred gauge, rose 2.9% in July, the highest since February and a reminder that inflation risks remain. Economists said the report keeps the Fed leaning toward a September rate cut, but the decision will depend on how much labor-market weakness emerges in the coming weeks.
Even with strong August gains, markets head into September, historically the weakest month for equities, with some caution. Nvidia shares ended the week lower on profit-taking, while Alibaba’s U.S.-listed stock jumped 13% after unveiling a new AI chip. Analysts say earnings strength is still supporting markets, but tariffs, inflation, and seasonal weakness could test sentiment in the weeks ahead.
Stock market closing data for the month of August 2025
News Summaries
Wall Street Stays Bullish on Nvidia Despite Lukewarm Forecast
Analysts are keeping faith in Nvidia (NVDA) even after its latest revenue outlook disappointed some investors. At least 10 firms raised their 12-month price targets following earnings, lifting the average by 3% to $202.60, which implies around 12% upside from current levels. JPMorgan’s Harlan Sur cited strong demand for Blackwell AI chips and noted Nvidia’s forward order book continues to outpace supply. Truist and Morgan Stanley also raised targets, framing the weaker guidance as a short-term issue.
The impact was clear in trading. Nvidia shares erased early premarket losses and turned positive after CEO Jensen Huang emphasized long-term demand and addressed sales of Blackwell chips to China. The stock has already climbed about 35% since May, adding more than $1 trillion in market value, and remains one of Wall Street’s most heavily backed names with 72 buy ratings against only one sell.
Making sense of it, investors appear willing to overlook softer near-term guidance in favor of Nvidia’s long runway in AI. China remains a wild card, but for now, confidence in the company’s technology leadership outweighs uncertainty.
China’s Chipmakers Push Back Against Nvidia
Chinese tech giants are moving quickly to reduce dependence on U.S. technology, with Alibaba and Huawei leading the charge.
Alibaba has developed a new AI chip designed for a wider range of inference tasks, manufactured entirely in China after U.S. restrictions blocked advanced fabrication through Taiwan Semiconductor. At the same time, Shanghai-based MetaX and Beijing’s Cambricon Technologies have rolled out competing products, while Huawei continues to push its Ascend AI chips in large-scale systems.
The impact is twofold. For U.S. firms like Nvidia (NVDA), once the dominant supplier of high-end AI processors to China, the shift means losing ground in one of the world’s largest AI markets. For Chinese firms, these new chips open doors to meet rising demand for AI services across industries, even if they lag behind American products in training advanced models.
Making sense of it, China’s chip push is about resilience. Backed by government funding and national urgency, local companies are creating credible alternatives that may narrow the gap with U.S. players sooner than expected.
PepsiCo Deepens Ties with Celsius in $585 Million Deal
PepsiCo (PEP) is set to raise its stake in Celsius Holdings (CELH) to 11% through a $585 million purchase of convertible preferred stock. The move builds on its initial $550 million investment in 2022, which gave PepsiCo an 8.5% interest. As part of the new agreement, Celsius will acquire PepsiCo’s Rockstar Energy brand in the US and Canada, while PepsiCo will handle distribution for Celsius and its recently acquired Alani Nu beverages in those markets. Celsius will take the lead role in managing PepsiCo’s energy portfolio in the US.
The impact is significant for both companies. For Celsius, which has become one of the fastest-growing energy-drink brands, PepsiCo’s powerful distribution network could supercharge retail availability and sales. For PepsiCo, shifting Rockstar in North America to Celsius aligns its energy-drink strategy under one umbrella, while still retaining ownership of the brand internationally.
Making sense of it, the deal reflects PepsiCo’s adaptation to changing consumer tastes and its focus on faster-growing, health-oriented beverage categories. With Celsius gaining scale and PepsiCo cementing distribution leadership, the partnership strengthens both companies’ positions in the lucrative energy-drink market.
From the World of Crypto
Google Cloud Builds Its Own Blockchain for Finance
Google Cloud has taken a decisive step into blockchain, unveiling its own Layer 1 network called the Google Cloud Universal Ledger (GCUL).
Announced by Web3 strategy head Rich Widmann on August 27, GCUL is designed for cross-border payments and asset settlement for banks and large institutions. It runs Python-based smart contracts and is currently in private testing, with pilots already underway, including one with CME Group to explore tokenised financial products.
The move positions Google Cloud directly alongside major payments players that are also building proprietary chains. Circle recently introduced Arc, a Layer 1 where USDC functions as native gas, while Stripe is working on Tempo, its own settlement network. By leveraging its global infrastructure, Google Cloud aims to support billions of users and hundreds of institutional partners.
Making sense of it, GCUL highlights how big tech is now competing head-on in the infrastructure of financial services. Unlike rivals pushing stablecoin-linked ecosystems, Google Cloud is pitching neutrality, allowing any issuer or payments provider to build on its chain. If adopted widely, GCUL could become a backbone for digital money movement at scale.
Key headlines of the week
US Renewable Investments Plunge Amid Trump’s Attacks | U.S. clean energy investment fell $20.5B, or 36%, in H1 2025 as policy rollbacks and tariffs hit confidence. Wind spending dropped 67% and onshore wind 80%. In contrast, EU renewables surged to nearly $30B.
Ant Group Profit Drops 60% on AI, Overseas Push | Ant Group’s profit slumped 60% to $654M as it invested in AI and international growth. Its Singapore unit earned $3B in 2024, paving the way for an IPO. Parent Alibaba booked a 1.5B yuan profit contribution.
India GDP Growth Accelerates to 7.8% Despite Tariffs | India’s Q2 GDP rose 7.8%, beating forecasts of 6.6%, supported by government spending. The rupee hit a record low at 88.29 per dollar as U.S. tariffs on Indian goods doubled to 50%. RBI still projects 6.5% growth for FY25.