Key Takeaways
- AI startup Perplexity is reportedly seeking new funding at a remarkable $20 billion valuation, underscoring strong investor interest in the artificial intelligence sector. The company has also made an unsolicited $34.5 billion offer to acquire Google's (GOOGL, GOOG) Chrome browser, positioning itself strategically amid ongoing antitrust scrutiny against the tech giant.
- Oil prices have fallen below $63 a barrel, influenced by a significant jump in US crude inventories and a stark warning from the International Energy Agency (IEA) of a potential record global supply glut in the coming year.
- Traders are now fully pricing in a 25 basis point (bps) interest rate cut by the Federal Reserve in September, reflecting a clear market expectation for a dovish shift in monetary policy.
- Scott Bessent, the current Treasury Secretary, has stated he has divested 90% of his assets as required, with only 4% of mandated divestitures remaining, following earlier warnings from the US Ethics Agency regarding potential conflicts of interest.
- The Pentagon has approved a $346 million sale of munitions, precision bombs, and rockets to Nigeria, signaling continued defense cooperation.
AI Sector Heats Up with Perplexity's Ambitious Moves
The artificial intelligence landscape continues to draw significant investor attention, with AI startup Perplexity reportedly aiming to raise new funds at an astounding $20 billion valuation. This development highlights the robust capital flowing into companies at the forefront of AI innovation. Further demonstrating its aggressive expansion strategy, Perplexity has put forth an unsolicited $34.5 billion offer to acquire Google's (GOOGL, GOOG) Chrome browser. This audacious bid comes as Google faces antitrust lawsuits concerning its dominance in web search, with Perplexity positioning the acquisition as a solution to potential antitrust remedies.
Oil Prices Under Pressure Amid Supply Glut Warnings
Global oil markets experienced a downturn, with prices slipping below $63 a barrel. This decline is largely attributed to a notable increase in US crude inventories, which have reached a two-month high. Compounding the bearish sentiment, the International Energy Agency (IEA) has issued a warning about a potential record global supply glut anticipated for next year. The IEA forecasts oil inventories could rise by 2.96 million barrels per day in 2026, surpassing even the levels seen during the 2020 pandemic. The bearish signals are also emerging as traders await the upcoming Trump-Putin meeting in Alaska, which could influence sanctions on Russia and global energy dynamics.
Fed Rate Cut Expectations Firm Up for September
Market participants are now overwhelmingly anticipating a 25 basis point (bps) interest rate cut by the Federal Reserve in September. This expectation has been solidified by recent economic data, with futures markets reflecting a high probability of such a move. The strong market conviction suggests that traders believe the central bank is poised to restart its monetary policy easing cycle next month, influenced by factors such as recent weakness in the job market.
Treasury Secretary Bessent Addresses Ethics Concerns
Treasury Secretary Scott Bessent has provided an update on his asset divestment process, stating that he has now divested 90% of his required assets. He indicated that only 4% of the mandated divestitures remain. This progress follows earlier warnings from the US Ethics Agency regarding potential conflicts of interest that arose from his financial holdings. Bessent, a former hedge fund manager, had pledged to divest from numerous funds and investments to avoid conflicts upon his confirmation.
US Approves $346M Arms Sale to Nigeria
In a significant defense development, the Pentagon has officially approved a $346 million sale of munitions, precision bombs, and rockets to Nigeria. This approval underscores ongoing military and security cooperation between the United States and the West African nation.
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.