👍 Another positive report

Good morning investors! Some big names rallied yesterday as the market continues to give good news.

Today we cover:

• Another positive inflation report

• AI stocks rise

• Adobe falls after report

📊 Economy and News 

Wholesale prices meet expectations

In August, wholesale prices experienced a moderate rise, aligning with market expectations. The Producer Price Index (PPI), which tracks the costs producers receive for final demand goods and services, rose by 0.2% for the month.

This increase matched the consensus estimate provided by Dow Jones. When food and energy prices were excluded, the PPI saw a slightly higher rise of 0.3%, which was just above the anticipated 0.2% growth. This trend was consistent even when trade services were excluded.

On a year-over-year basis, the overall PPI increased by 1.7%. When food, energy, and trade services were removed from the calculation, the annual rise stood at 3.3%. The monthly gain was largely driven by a 0.4% increase in services, excluding categories such as trade, transportation, and warehousing. A notable contributor was the 4.8% surge in guestroom rental prices.

What Remained Stable

While services prices rose, goods prices remained steady in August. This flat performance followed a 0.6% gain in July, reflecting stability in the cost of goods over the month.

The inflation data released aligns with a broader economic picture, where consumer prices also rose by 0.2% for the month, consistent with market expectations. Meanwhile, initial unemployment claims for the week ending September 7 totaled 230,000, slightly above the forecasted 225,000, but up just 2,000 from the previous week.

Global hits:

• European Central Bank cuts interest rates again and lowers growth forecasts.

• U.S. crude oil rises as Francine disrupts production in Gulf of Mexico.

• Ajit Jain, Buffett’s insurance leader for nearly 40 years, dumps more than half of Berkshire stake.

Good news: Gilead’s twice-yearly shot cut HIV infections by 96% in trial.

📈 Stocks

S&P 500 5,595.76 (+0.75%)
DJIA 41,096.77 (+0.58%)
NASDAQ 17,569.68 (+1.01%)
BRENT CRUDE 72.33 (+.0.03%)
* Prices as of Mar 3rd, 12:20 AM UTC

AI stocks are back in focus

Asian semiconductor giants continued Wall Street’s rally, fueled by Nvidia CEO Jensen Huang's optimistic remarks about the company’s future.

During the Goldman Sachs Communacopia + Technology Conference in San Francisco, the founder of the AI chip leader shared insights on Nvidia's competitive advantages, rivals, and supply chain. Nvidia shares surged +8% on Wednesday, with Huang highlighting the overwhelming demand for their products, describing it as "deeply emotional" for many.

This positive sentiment spread to Asia, boosting stocks tied to Nvidia suppliers and semiconductor firms.

Taiwan Semiconductor Manufacturing Corp (TSMC), a major contract chip manufacturer, surged +5%, while Hon Hai Precision Industry—globally recognized as Foxconn—gained +4%. Huang praised TSMC as a key partner, calling it "the world's best" by a significant margin.

In Japan, semiconductor stocks saw significant gains, with Advantest, a semiconductor testing equipment provider, jumping +9%. Tokyo Electron and Renesas Electronics also climbed +4.6% and +3%, respectively.

SoftBank Group, the Japanese technology conglomerate with a stake in chip designer Arm, rose +7%.

The wave of investor confidence reached South Korea, where Samsung Electronics and SK Hynix, the top two memory chip manufacturers globally, saw their stocks soar +2% and +7.5%, respectively.

Also check: Microsoft to cut 650 jobs at its Xbox gaming unit.

💵 Personal Finance

How To Minimize Crypto Taxes

Crypto is once again increasing, which means some investors will be walking away with profits. The only bad thing about this is the tax you’ll have to pay on capital gains. But, there are ways to save ‘crypto tax’, here’s how.

• Mitigate gains with losses. As is the case with any investment, you can leverage crypto gains by offsetting them with losses from other investments throughout the year. This strategy, known as tax-loss harvesting, allows you to write off a maximum of $3,000 in a given year.

• Retain your crypto for the extended term. By maintaining a crypto investment for a minimum of one year prior to selling, you become eligible for the advantageous long-term capital gains rate.

• Factor in mining expenses. Despite the seemingly cost-effective nature of crypto mining, it involves substantial expenditures such as computers, servers, electricity, and internet service provider fees. If you engage in crypto mining, you can deduct these costs from your mining income, although the deductible amount hinges on whether you classify your mining operation as a business.

• Engage in charitable giving. If you find yourself with more crypto profits than necessary, consider alleviating your tax liability by donating a portion of your crypto to charity. You'll receive a deduction equivalent to the fair market value of your crypto at the time of donation.

• Know when to sell. If you have the flexibility of time, consider waiting for a more favorable tax rate before selling your crypto.

• Explore retirement investment options. Opting for crypto investments within a retirement plan, such as a traditional individual retirement account (IRA) or Roth IRA, enables you to defer or potentially eliminate investment gains. However, this route is more complex compared to investing through a standard brokerage account.

What if I avoid crypto taxes?

Not paying taxes is not recommended as it’s illegal and could result in interest, penalties, or even criminal charges. Furthermore, you may even receive a letter from the IRS if you fail to report income and pay taxes on crypto, or do not report your transactions properly.

Check this video for more on how to save taxes on crypto:

💰 Be a Better Investor

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👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.

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