Morning Wrap: ASX 200 to edge higher, S&P 500 and Nasdaq lower on chip selloff, Gold extends gains

In a nutshell:

• A fairly quiet and narrow session on Wall Street, major benchmarks finished mixed as semis sold off and energy stocks pulled back but broader gains buoyed the Dow and Equal-weight S&P 500

• Nvidia's decision to raise AI server prices by more than 15% detonated the memory complex, with names like Micron, SanDisk and Seagate trading broadly lower

• Bessent launched "Operation Economic Outcast" against Iran, while Trump threatened 50% tariffs on Canadian cars and steel from January 2027

• Gold added another ~1% to US$4,602/oz, now up ~17% since 16-Jun and trading at the highest since 14-May

Let's dive in.

• Major US benchmarks mixed as a sharp pullback for semiconductor stocks weighed on the Nasdaq

• High-profile names like Micron (-5.8%), AMD (-3.4%), Intel (-3.1%) Nvidia (-2.9%) and Broadcom (-2.6%) weighed on the S&P 500 and Nasdaq

• Eight of 11 S&P 500 sectors higher, buoying the Dow (+0.26%) and Equal-weight S&P 500 (+0.12%) 

• US 30-year yield down 5 bps to 5.22% (and 11 bps off the 18-Aug high of 5.33%), while the shorter-end of the curve settled fractionally lower

• Gold hit its highest level since 15-May, now up 17% since the 16-Jul as a subdued dollar and fiscal anxiety fuelled the debasement trade

• A gauge of semiconductor giants sank 3% as the chipmaker rout offset declining oil prices, with most S&P 500 shares actually rising even as the index fluctuated (BBG)

• Treasury could tap its near $1tn General Account to fund expanded bond buybacks, two senior officials said, giving it firepower to influence long-term yields (CNBC)

• Shein launched a Hong Kong IPO seeking up to HK$13.9bn (US$1.8bn), offering 280 million shares at HK$47.60-49.50, valuing it near US$27bn vs. a US$100bn private peak (BBG)

• Alibaba's HK$80bn placement was the largest-ever primary follow-on by a Hong Kong-listed company and the third-largest globally in 2026, behind only Alphabet and Intel (RT)

• Nvidia reports Wednesday after the close with consensus at US$91.9bn revenue and US$2.08 EPS against company guidance of US$91.0bn plus or minus 2% (Investing)

• Kospi tanked 3.1% on Monday as foreign investors dumped a net 3.69 trillion won of shares, the worst session since chipmakers rallied on shareholder returns (KT)

• Nvidia told major customers that servers containing its Vera Rubin and Grace Blackwell AI chips will rise more than 15% in price from early 2027, driven by soaring memory costs (BBG)

• Samsung Electronics shares fell 8.7% to 257,000 won after its record 90-110 trillion won shareholder return plan omitted any treasury share cancellation timetable, disappointing investors (RT)

• Alibaba slumped 8.5% in Hong Kong to HK$112 after pricing 710 million new shares at HK$112.70, an 8.4% discount, raising US$10.2bn to fund full-stack AI capability (Investing)

• Michael Burry disclosed he exited his entire Alibaba position for a large JD.com stake, saying he cannot bless share issuances and Alibaba would need to halve before he returns (BBG)

• SanDisk tumbled around 7% as reports that Washington may let Apple source DRAM from CXMT and NAND from YMTC wiped roughly US$17bn from its market value (YF)

• Bessent launched "Operation Economic Outcast", saying Treasury has mapped every node, facilitator and network Iran uses to smuggle oil and evade sanctions (CBS)

• Bessent declined to set a compliance deadline but said US patience is not infinite and that Washington would aggressively pursue secondary sanctions against any country still trading with Tehran (AX)

• Iran blacklisted 45 tankers for breaching its Strait of Hormuz transit rules, threatening fines, detention and cargo confiscation, and warning any vessel doing ship-to-ship transfers with them faces the same (RT)

• Iran's Foreign Ministry spokesman Esmail Baghaei warned of a harsh response, saying any escalation of the situation will undoubtedly bring about consequences (SP)

• President Pezeshkian acknowledged major imbalances in water, electricity, gas, fuel and the banking sector, conceding Iranian society faces many problems amid war and blockade (YF)

• Only four commodity vessels crossed the Strait of Hormuz on Sunday after 13 on Saturday, with UK Maritime Trade Operations estimating AIS-detected traffic remains roughly 90% below pre-war levels (OP)

• Trump said tariffs on all Canadian cars, trucks, auto parts and steel will rise to 50% on 1-Jan-27, writing on Truth Social that Canada is among the worst nations in the world to deal with (CNBC)

• Trump added that Canada "will be treated like a State no longer", arguing Canada does 95% of its business with the US and therefore needs America more than the reverse (CNBC)

• USTR Greer blamed Ottawa for the collapse, telling CNBC that Canada changed its demands in the final hours and simply wanted more than Washington would offer (CNBC)

• Greer said the new duties cover about 5% of Canadian imports and declined to call the situation a trade war, saying markets understand it affects a very small amount of trade (CNBC)

• Ontario Premier Doug Ford threatened to cut off electricity and critical minerals to the US if the trade fight escalates further (AP)

• Canada's retaliatory tariffs take effect 8 September, targeting US steel, dairy, appliances, agricultural equipment, pulp and paper and electronics on a dollar-for-dollar basis (NPR)

• Fed Warsh delivers his first Jackson Hole keynote Friday, with the symposium running 27-29 August under the theme "Financial Innovation: Implications for Payments and Policy" (RT)

• Treasury officials pushed back on claims it abandoned "regular and predictable" issuance, noting the buyback announcement came nearly three weeks before the first operation on 9 September (CNBC)

• Singapore July core inflation accelerated to 2.0% year-on-year from 1.6%, well above the 1.7% forecast, in a hotter-than-expected print (BBG)

• US gasoline prices held at a national average of US$4.09 a gallon on Sunday, roughly 37.5% above pre-war levels, according to AAA data (CNN)

A very busy day for FY26 results, with plenty more to come. For a full breakdown plus consensus numbers, check out the Live Blog

• AUB Group reports FY26 underlying NPAT of $224.6m, up 12% on $200.2m, though reported NPAT fell to $96.0m from $180.1m. Final dividend 71cps takes the full-year payout to 98cps, up 7.7%. Guides FY27 underlying NPAT of $245-265m, growth of 9-18% (AUB)

• Australian Ethical delivers record FY26 UPAT of $27.3m, up 15%, on revenue of $129.5m, up 9%, with NPAT of $25.7m up 29%. FUM hit a record $14.5bn on organic net flows of $664m, up 13%, while the underlying cost-to-income ratio improved 1.6ppt to 69.8%. Total dividends of 18cps, up 29% (AEF)

• Beforepay posts FY26 Cash NPAT of $15.7m, up 57%, on revenue of $50.6m, up 26%, with total advances of $963m up 19%. Personal Loans scaled 728% to $16.9m at a 3.3% net bad debt rate, lifting group net bad debts 0.3ppt to 0.5%. Declares a maiden-look final dividend of 10cps (B4P)

• Cedar Woods Properties reports record FY26 NPAT of $65.6m, up 36% and above the top end of guidance, with revenue of $502.4m up 8% and gross margin widening to ~30% from 28%. Presales of $830m cover more than 90% of forecast FY27 revenue. Targets a further 15% NPAT lift in FY27 (CWP)

• Dalrymple Bay Infrastructure lifts H1-26 TIC revenue 3.6% to $156.5m and EBITDA 4.7% to $150.5m, with statutory NPAT up 14.2% to $49.2m and FFO up 10.2% to $92.7m. Guides TY-26/27 distributions of 28.62cps, an 8.5% increase, and maintains a 3-7% DPS growth target (DBI)

• GenusPlus Group delivers record FY26 revenue of $1.281bn, up 70.5%, with normalised EBITDA of $100.8m up 49.6% and underlying NPAT of $54.7m up 44%. Net cash of $399.3m after the May equity raise, with an orderbook of $2.2bn and a $3.6bn tendered pipeline. Guides FY27 EBITDA of $200-205m, roughly double FY26 (GNP)

• Monadelphous Group reports record FY26 revenue of $2.98bn, up 31.5%, with NPAT up 52.1% to $127.3m and EBITDA up 42.9% to $226.0m at a 7.58% margin. Engineering Construction revenue jumped 48.5% to $1.37bn. Full-year dividend of 108cps, up 50%, with more than $680m in new contracts secured since 1 July (MND)

• Nanosonics posts FY26 revenue of $203.9m, up 3%, or up 6% to $211.5m in constant currency, with EBIT down 10% to $16.0m but up 21% at CC. Trophon placements rose 9% to 4,230 units and North American upgrades jumped 32%. Announces a new on-market buyback of up to $40m, with CORIS commercial launch on track for H1 FY27 (NAN)

• SiteMinder lifts FY26 adjusted EBITDA 96.5% to $28.1m, with margin expanding 419bps to 10.6% and adjusted free cash flow more than doubling to $10.5m. ARR grew 24.1% to $313.7m and revenue 22.0% to $266.1m on a constant currency, organic basis, narrowing the reported net loss to $11.3m from $24.5m. Guides FY27 ARR growth in the 20s with meaningful further margin expansion (SDR)

• SkyCity Entertainment confirms it received and rejected two unsolicited takeover proposals in May 2026, from an Oaktree Capital special situations fund at NZ$0.70 cash per share and a second party at an implied NZ$0.75. The board unanimously found both undervalued the company and carried problematic conditions, and neither party returned with an improved bid (SKC)

• Vulcan Steel reports FY26 adjusted EBITDA of NZ$130.3m, up 16%, and adjusted EPS of NZ15.1c, up 10.8%, though operating cash flow fell 30% to NZ$73.0m. The recently acquired rollforming business beat expectations on nine months of trading, helping deliver the first underlying volume growth since FY22. Total dividends of NZ7.0c (VSL)

• Not a whole lot: A fairly uneventful overnight session, outside of semis continuing to roll over (SOX down 2.7%, now down 9.5% in the last five sessions). Defensives like Staples, Financials and Utilities all gained more than 1% on Wall Street. Mixed overnight session for resources, with US-listed ETFs like VanEck Gold Miners (+0.69%) edging higher, Copper Miners flat and Rare Earths/Strategic Metals (-1.24%) and Uranium (-0.82%) slightly lower. Gold miners are starting to look a little overbought (both literally and relative to the gold price) but hard to deny the driver behind the gold price rally (hedging against structural fiscal deficits and debt sustainability concerns).

Stocks trading ex-dividend: 

• Tue 25 Aug: AGL Energy (AGL) – $0.26, Amotiv (AOV) – $0.23, Bega Cheese (BGA) – $0.075, Boom Logistics (BOL) – $0.022, Challenger (CGF) – $0.175, Deterra Royalties (DRR) – $0.108, Eureka Group Holdings (EGH) – $0.007, MA Financial Group (MAF) – $0.08, REDOX (RDX) – $0.065, Vicinity Centres (VCX) – $0.062

• Wed 26 Aug: Bell Financial Group (BFG) – $0.05, Maxiparts (MXI) – $0.055, Ooh!Media (OML) – $0.02, Telstra Group (TLS) – $0.105, The Lottery Corporation (TLC) – $0.085

• Thu 27 Aug: Australian United Investment Company (AUI) – $0.28, Cuscal (CCL) – $0.07, Ebos Group (EBO) – $0.448, Heartland Group Holdings (HGH) – $0.029, Ignite (IGN) – $0.03, IPH (IPH) – $0.195, JB Hi-Fi (JBH) – $1.27, MLG OZ (MLG) – $0.013, REA Group (REA) – $1.73, SRG Global (SRG) – $0.04

• Fri 28 Aug: Beach Energy (BPT) – $0.02, Fiducian Group (FID) – $0.282, Iress (IRE) – $0.14, Orora (ORA) – $0.04, Shape Australia Corporation (SHA) – $0.18

Other ASX corporate actions today:       

• Dividends paid: None

• Earnings: AUB Group (AUB), Austal (ASB), Austin Engineering (ANG), Australian Ethical Investment (AEF), Beforepay Group (B4P), BluGlass (BLG), Cedar Woods Properties (CWP), Centrepoint Alliance (CAF), Coles Group (COL), Dalrymple Bay Infrastructure (DBI),G8 Education (GEM), Genetic Signatures (GSS), GenusPlus Group (GNP), Humm Group (HUM), Ingenia Communities Group (INA), Integral Diagnostics (IDX), Janison Education Group (JAN), Mader Group (MAD), Monadelphous Group (MND), Mystate (MYS), Nanosonics (NAN), Peet (PPC), Scentre Group (SCG), SiteMinder (SDR), Skinkandy (SK1), Tyro Payments (TYR), Viva Energy Group (VEA), Vulcan Steel (VSL), Woodside Energy Group (WDS)

• IPOs: Powerhaus Uranium (POW) at 12:00 pm AEST 

• AGMs: None

Economic calendar (AEST):

• 11:30 am: RBA Meeting Minutes