Amid expectations of a Fed rate cut, gold hit an all-time high, topping $3685 an ounce and adding more than 40% since the start of the year. Meanwhile, London-based startup Nothing raised $200 million at a $1.3 billion valuation to develop AI smartphones, and a U.S. appeals court blocked Trump's attempt to fire Fed board member Lisa Cook early. On these and other topics - in our review of key events for the morning of September 16.

Gold hits record on expectations of Fed rate cut

The price of gold on Tuesday exceeded the mark of $3685 per ounce, updating a record amid expectations of interest rate cuts by the Federal Reserve, Bloomberg reports. Weakening dollar and weak labor market data strengthened forecasts of further easing of monetary policy.

Gold has risen over 40% this year, outperforming the S&P 500 Index and reaching levels above the inflation-adjusted peak of 1980. The market is supported by central bank purchases, ETF inflows and ongoing geopolitical uncertainty.

An additional factor of pressure on the Fed was the intervention of Donald Trump, seeking the resignation of Council member Lisa Cook and lobbying for a softer policy. Goldman Sachs predicts that with the reallocation of at least 1% of private investments from government bonds to gold quotes may approach $5000 per ounce.

Startup Nothing has raised $200 million to develop AI smartphones

London-based smartphone maker Nothing, founded by former OnePlus co-founder Carl Pei, has raised $200 million at a valuation of $1.3 billion, Reuters reports. The round was led by the fund Tiger Global, GV, Highland Europe, EQT and other investors took part. The company intends to integrate artificial intelligence into its devices.

Since its founding in 2020, Nothing has launched a smartphone, headphones, sold millions of gadgets and surpassed $1 billion in cumulative sales. The new capital should support the development of the ecosystem, including smartphones, audio products and smartwatches.

Pei said the company's operating system could expand to smart glasses, humanoid robots and electric cars in the future. A previous funding round in 2023 brought the startup about $100 million.

Appeals court blocks Trump from firing Fed member Lisa Cook before the meeting

The Federal Court of Appeals for the District of Columbia Circuit has ruled that Donald Trump cannot fire Federal Reserve Board member Lisa Cook until the conclusion of a meeting where a rate cut will be decided, CNBC writes. Thus, Cook will take part in the two-day meeting, which started on Tuesday.

Trump tried to remove Cook from her post in August, accusing her of mortgage fraud, but the courts found those arguments dubious and viewed the White House's actions as a threat to the central bank's independence. Cook, appointed by Joe Biden and voted in unison with Jerome Powell, sued against the firing and denied the charges.

Two Democratic judges upheld the lower court's decision, calling Trump's actions a likely constitutional violation. The only dissenter was a Trump-appointed judge who found the balance of interests tipped in the administration's favor.

Tesla is in plus YTD after collapsing in the first quarter

Tesla shares rose 3.6% on Monday, reaching $410.26 and surpassing the year-end 2024 level, CNBC writes. The stock is up 85% from its April low of $221.86, when the market crashed after Donald Trump announced new duties. The growth was aided by the news of Elon Musk's purchase of almost $1 billion worth of company shares through a family fund.

Despite the rally, Tesla remains one of the outsiders among mega-capital tech giants, overtaking only Apple, down 5% YTD. Electric car sales are declining due to an outdated lineup and competition from China's BYD. An additional risk has been criticism of Musk for his political activism, including his multimillion-dollar support for Trump's campaign.

The company is betting on new directions - MegaBlocks energy systems, the robotaxi project and Optimus humanoid robots. However, unmanned vehicles are not yet ready for mass production, and robots remain a concept far from commercialization, the TV channel notes.

What's in the markets

- Japan's broad Topix index was up 0.47 percent.

- The benchmark Nikkei 225 was up 0.54%.

- In South Korea, the Kospi index was up 1.2%, the Kosdaq index of small companies was almost unchanged. - Australian S&P/ASX 200 was falling by 0.26%.

- Futures on the S&P 500, Nasdaq 100 and Dow Jones Industrial Average were little changed.

This article was AI-translated and verified by a human editor

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