Key Takeaways
- Federal Reserve Bank of Kansas City President Jeff Schmid affirmed that a modestly restrictive monetary policy stance remains appropriate due to solid economic momentum and inflation remaining above target, suggesting tariffs' limited impact on inflation supports holding rates steady.
- Tesla (TSLA) has terminated its ambitious Dojo supercomputer project, marking a significant strategic pivot towards focusing on its AI5 and AI6 chips, which will be produced in collaboration with Samsung.
- BitMine Immersion (BMNR) dramatically expanded its stock sale program to $24.5 billion to fund further Ethereum (ETH) acquisitions, solidifying its position as the largest corporate ETH treasury globally with holdings exceeding 1.15 million tokens valued at approximately $4.96 billion.
- Electricite de France (EDF) was forced to shut down four nuclear reactors at its Gravelines plant, totaling 3.6 gigawatts of generating capacity, after a "massive and unforeseen" swarm of jellyfish clogged cooling water filters.
- Oklo Inc. (OKLO) was selected for a Department of Energy (DOE) nuclear pilot program, a move that aims to accelerate the deployment of advanced nuclear reactors and bolster domestic fuel independence.
Federal Reserve Maintains Hawkish Stance Amid Succession Speculation
Federal Reserve Bank of Kansas City President Jeff Schmid stated on Tuesday that the current "modestly restrictive" monetary policy stance is still appropriate given the economy's continued momentum, growing business optimism, and inflation remaining above the Fed's objective. Schmid emphasized a patient approach to changing the policy rate and noted that the limited effect of tariffs on inflation supports holding rates steady rather than cutting them. He indicated a willingness to adjust his views only if there is evidence of a significant drop in demand growth.
Meanwhile, Wall Street analysts, according to CNBC, are still anticipating three Federal Reserve interest rate reductions before the end of the year. Separately, reports indicate that Trump administration officials are broadening their search for a potential replacement for Federal Reserve Chair Jerome Powell, whose term ends in May 2026. Among the new candidates reportedly under consideration are current Fed Vice Chairs Philip Jefferson and Michelle Bowman, and Dallas Fed President Lorie Logan. Treasury Secretary Scott Bessent is leading the search, with President Donald Trump expected to announce his choice this fall.
Tesla Abandons Dojo Supercomputer Project
Tesla (TSLA) has made a significant strategic shift by terminating its in-house supercomputer project, Dojo. The system, designed for AI training to enhance Autopilot and Full Self-Driving (FSD) functions, was built around Tesla's own D1 chip. CEO Elon Musk explained that it "doesn't make sense for Tesla to divide its resources and scale two quite different AI chip designs," and the company will now focus on developing its AI5 and AI6 chips, which are currently in development and manufactured by Samsung.
The decision follows reports of unrest within the Dojo team, with approximately 20 employees leaving to form a new AI startup called DensityAI, and the departure of Dojo team leader Peter Bannon. Remaining Dojo workers are being reassigned to other data center and compute projects within Tesla. This move signals Tesla's increased reliance on external technology partners, including Nvidia (NVDA) and Advanced Micro Devices (AMD) for compute, and Samsung Electronics for chip manufacturing.
BitMine Immersion Boosts Ethereum Holdings with Expanded Stock Sale
BitMine Immersion Technologies (BMNR) has announced a substantial expansion of its stock sale program, raising its capacity to $24.5 billion to facilitate further acquisitions of Ethereum (ETH). This aggressive strategy has positioned BitMine as the largest corporate Ethereum treasury globally, with its ETH holdings now exceeding 1.15 million tokens, valued at approximately $4.96 billion as of August 10th.
The company's rapid accumulation of Ethereum began with its ETH Treasury strategy launched on June 30th, swiftly surpassing key milestones. BitMine's stock has seen significant gains, surging 62% overall after building the world's largest listed corporate Ethereum treasury. The firm is supported by a premier group of institutional investors, including ARK's Cathie Wood and Bill Miller III, as it pursues its goal of acquiring 5% of all ETH.
EDF Nuclear Reactors Offline Due to Jellyfish Swarm
Electricite de France (EDF) has been forced to shut down four atomic reactors at its Gravelines power plant, located on the north coast of France. The shutdown, which occurred on Sunday and Monday, was caused by a "massive and unforeseen" swarm of jellyfish that clogged the filter drums of the plant's seawater pumping stations, essential for cooling the reactors.
The incident temporarily removed 3.6 gigawatts of generating capacity from service. EDF stated that the safety of the plant, its employees, and the environment was not at risk. The company expects the reactors to return to service later this week. Scientists suggest that warmer waters in the North Sea, intensified by marine heat waves, contribute to jellyfish blooms, which have caused similar disruptions at nuclear facilities in other countries previously.
Oklo Selected for Department of Energy Nuclear Pilot Program
Oklo Inc. (OKLO), an advanced nuclear technology company, has been selected for a Department of Energy (DOE) nuclear pilot program. This initiative, issued pursuant to Executive Order 14299, aims to accelerate the deployment of advanced nuclear reactors and eliminate America's reliance on foreign sources of enriched uranium.
Oklo's selection underscores a broader U.S. nuclear energy revival, driven by regulatory streamlining and executive orders prioritizing nuclear energy. The company is developing fast fission power plants and is focused on nuclear fuel recycling, which includes converting nuclear waste into clean energy. Oklo was the first to receive a site use permit from the U.S. Department of Energy for a commercial advanced fission plant and has secured fuel for its first commercial facility.
US-EU Trade Tensions Continue with New Tariffs
Trade tensions between the United States and the European Union persist, with the EU set to impose additional duties on a range of U.S.-origin products. These countermeasures, in some cases up to 30 percent, are in response to Washington's renewed and expanded Section 232 tariffs on items such as steel, aluminum, and vehicles, which are capped at 15 percent on most goods.
While a July 27 trade framework agreement between President Donald Trump and European Commission President Ursula von der Leyen initially defused an immediate tariff spiral, the absence of a binding legal text leaves room for further negotiations and conflicting interpretations. The newly announced EU duties will phase in from August 2025 to February 2026, potentially impacting supply chains by increasing landed costs and influencing sourcing decisions.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.