👀 Nvidia's rival is going public

The US created fewer jobs than expected, Chipmaker Cerebras eyes an IPO, and the hunt for bigfoot | [Finimize](   TOGETHER WITH     Hi {NAME}, here's what you need to know for August 3rd in 3:10 minutes.   💡 You hear a lot from our analysts – boy, they can yap. So now we want to give you the floor: fill in this [20-second survey](, and tell us what you want from us. [Fill in the quick survey]( Today's big stories - US jobs data suggested that the country is starting to strain under high interest rates - Coal might be controversial, but there are five reasons to believe it’s sticking around – [Read Now]( - Nvidia challenger Cerebras confidentially filed for an IPO, which could see it hitting the market by October Less Ain’t More [Less Ain’t More] What’s going on here? Data out on Friday [showed]( that the US created fewer jobs than expected, while the unemployment rate ticked up. What does this mean? Nonfarm payrolls are a monthly way of taking a read on employment levels in the US – excluding some industries like farming. This month, the stats won’t be a reassuring read for jobseekers. The country added a shaky 114,000 jobs versus the predicted 175,000, while the unemployment rate ticked up to a higher-than-expected 4.3% – the highest level in nearly three years. Plus, the average hourly wage was up 3.6%, lower than the predicted 3.7%. That suggests companies might be straining under the weight of high interest rates, and that would pile pressure on the Federal Reserve (Fed). Why should I care? For markets: Falling off the tightrope. The Fed doesn’t want to cut rates too quickly, as that could undo much of the progress made against inflation. But the central bank may be regretting its decision after this week’s data. Traders are still pricing in a 0.5% cut in September, with more to follow later in the year. Although, there are concerns that may be too late, with a hard landing seeming increasingly likely. That explains why some investors are running to “safe-haven” assets like US bonds. The bigger picture: Running for the exit. The Bank of Japan increased interest rates this week to support the stumbling yen. And because that forced traders who were betting against the yen to close their positions, the hike was rewarded with a strong rally. But that change also triggered a massive sell-off in Japanese stocks, because investors had borrowed the cheap yen to invest in stocks with higher returns. So one hike meant everyone rushed for the exits, causing the country’s main stock indexes to fall more than 7% in the last two days. You might also like: [Here’s how quickly interest rates are expected to come down](. Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Less Ain’t More&utm_campaign=daily-global-03-08-2024&utm_source=email) Analyst Take Five Reasons Not To Write Off Coal [Five Reasons Not To Write Off Coal]( By Theodora Lee Joseph, CFA, Analyst [Thermal coal]( – the world’s dirtiest fuel – might seem like it’s having a rough year. But despite governments around the world making promises of do-gooding, the world is burning [more coal than ever]( this year. See, much is made of coal’s peak demand – after which point, the fuel should start fading out while cleaner alternatives pick up. That date keeps being extended, though, and Theodora’s found [five reasons why](. So that’s today’s Insight: [five reasons why you might want to consider coal](. [Read or listen to the Insight here]( SPONSORED BY IG The A to Z of options trading, for beginners through to the initiated When it comes to perfecting your investment strategy, you can never have too many options. So make sure you’re not [neglecting options](, which give you the choice to buy or sell a specific asset on a specific day at a specific price. See what we did with the “options” thing? They’re trickier to deal with, especially if you’re just used to ETFs and single stocks. But used correctly, and options can help you [diversify your portfolio and hedge to help you manage risk](. So take a look at [IG Academy’s free resources](: the guides cover everything from the basics of options to specific popular trades, like covered calls and short iron condors. Fancy, indeed. [Discover your options with IG Academy.]( [Get Started]( Options and futures are complex instruments which come with a high risk of losing money rapidly due to leverage. You could lose more than your original investment. When you support our sponsors, you support us. Thanks for that. If you want your brand featured here, [get in touch.]( Public Enemies [Public Enemies] What’s going on here? US chip designer Cerebras Systems, [filed]( for an initial public offering (IPO), bringing its rivalry with Nvidia into the public eye. What does this mean? This IPO would be a major moment for the semiconductor world, marking the arrival on the scene of what many see as Nvidia’s biggest threat. After all, Cerebras specializes in AI-optimized semiconductors, boasting the signature CS-3 chip – rumored to sell for millions – that can be linked together to form supercomputers. So at only eight years old, the plucky US startup has developed tech that easily overshadows chips from Intel and AMD. No wonder the company is reportedly targeting a valuation higher than the $4 billion it secured in its 2021 funding round. Why should I care? Zooming out: Come quick, the party’s nearly over. Mind you, Cerebras might be turning up unfashionably late. Only a few months ago, investors were obsessed with anything AI. But now, they’re growing skeptical about the tech’s ability to actually deliver significant cost-savings and profit. That’s why many investors have been shifting their attention from tech to value stocks lately. Although, the Federal Reserve might be able to relieve some pressure. If the central bank cuts rates in September, US stocks – especially small ones – would see the positive effect of lower borrowing costs on their balance sheets. Plus, the IPO market’s more likely to hit its stride in a lower rate environment, when company valuations and investor confidence both sit a little higher. The bigger picture: Intel hasn’t nailed the smarts. Intel saw 20% of its value vanish overnight, after the US chipmaker reported disappointing quarterly sales this week. The company hasn’t quite cracked AI like its rivals, and demand for its non-AI processors – the backbone of Intel’s business – hasn’t made up the gap. That explains why Intel’s shifting to self-preservation mode, focusing on cutting costs and spending less instead of chasing radical innovation. You might also like: [Three sizable opportunities in small-cap stocks.]( Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Public Enemies&utm_campaign=daily-global-03-08-2024&utm_source=email) 💬 Quote of the day "The best and most beautiful things in the world cannot be seen or even touched – they must be felt with the heart." – Helen Keller (an American author, political activist, and lecturer) [Tweet this]( Take a seat on the Summit’s main stage Thousands of retail investors tuned into our [Modern Investor Summit]( sessions last year. Eager to discover the smartest tools and savviest tricks, they piled into fireside sessions, Q&A panels, and keynote speaker slots with the likes of Jamie Dimon. Now’s your chance to secure a spot at the next one. Our [Summit]( is slated for December this year, and we’re on the lookout for speakers with big ideas and serious know-how. [Take a look at last year’s recording of CFA Institute’s session]( to get a feel for it: the platform detailed sustainable investing techniques, as well as explaining its own climate finance courses. If you’re ready for your turn, [talk to the team to bag your spot before they fill up.]( [Drop Us A Line]( 🎯 On Our Radar 1. Gone green. [Matcha has taken over the world](, here’s how it happened. 2. The metaverse could change everything. Prepare yourself for a [new investing landscape.](* 3. Harsh realities. Here are some of the [most disastrous reality TV]( shows ever made. 4. There’s a popular saying in crypto: “not your keys, not your coins”. Unlock the [pros and cons of holding your own keys versus storing them elsewhere](.* 5. Searching for Sasquatch. A deep-dive into the [Great Florida Bigfoot Conference](. 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