Evening digest: AMD rallies, Gold drops on Fed rate hike bets

AMD shares jumped after the chipmaker raised its potential 2030 total addressable market to $3 trillion.

Gold prices edged lower as higher oil prices increased inflation concerns and boosted expectations for a September Federal Reserve rate hike.

Oil prices climbed to multi-week highs as renewed Middle East hostilities heightened concerns over energy supply disruptions.

Bitcoin fell below $79,000 as renewed geopolitical tensions pressured risk assets and traders watched a key technical support level.

AMD stock rises on $3 trillion market outlook

AMD shares rose 6% on Tuesday after Chief Financial Officer Jean Hu said the company's total addressable market could reach as much as $3 trillion by 2030.

The figure is above AMD's previous estimate of roughly $2 trillion, which the company provided in July.

Hu pointed to rising demand for GPUs, CPUs and AI-enabled PCs as drivers of the expanded opportunity. She also said AMD's data center business is expected to more than double next year.

The company plans to launch its MI450 GPU this quarter, with production expected to increase during the fourth quarter and into 2027.

AMD has also increased supply in the constrained CPU market, supporting expectations for server CPU growth of more than 80% in the second half of this year and more than 70% next year.

The company is also seeing demand for its Helios rack-scale systems from Meta Platforms and two unnamed AI labs.

Their forecasts have exceeded initial purchase agreements, while AMD is seeing additional interest from newer "neo-cloud" providers.

AMD's Data Center revenue increased 107% year over year, while the company has a 6GW GPU agreement with OpenAI.

However, investors continue to weigh risks including export controls, memory supply constraints, tariffs and weakness in the Gaming segment.

Gold prices edge lower as rate hike bets rise

Spot gold fell 0.73% to $4,371.2 an ounce, while US gold futures for December delivery dropped 1.3% to $4,418.40.

Higher oil prices have added to concerns that inflation could remain elevated, potentially strengthening the case for tighter Federal Reserve policy.

Traders are pricing in roughly a 60% chance of a rate hike at the central bank's September meeting, compared with about 50% before the stronger-than-expected August jobs report.

The US economy added 162,000 jobs in August, while unemployment remained at 4.1%.

Investors are now awaiting the Producer Price Index on Thursday and Consumer Price Index on Friday for additional clues about the Fed's policy outlook.

Rising interest rates can weigh on gold because the metal does not generate income.

Silver, however, rose 0.3% to $66.3074 an ounce, while platinum gained 0.6% to $1,837.72. Palladium fell 2.5% to $1,354.32.

Oil climbs as Middle East supply risks intensify

Brent crude rose to as high as $99.46 a barrel, its highest level since July 24, while WTI also climbed sharply.

Renewed attacks in the Middle East have increased concerns about further disruptions to regional energy supplies.

Yemen's Iran-backed Houthis attacked several cities and energy facilities in Saudi Arabia, while shipping traffic through the Strait of Hormuz remained severely reduced.

The waterway previously handled about 20% of global oil supplies before disruptions intensified.

The supply concerns have also contributed to higher fuel prices. US diesel prices reached record highs last week, while gasoline prices also hit records over the Labor Day weekend.

Goldman Sachs and HSBC have raised their crude price forecasts for the remainder of 2026 and 2027 as markets assess the possibility that shipping disruptions could persist.

Bitcoin falls below $79,000

Bitcoin dropped to as low as $77,600 during the Wall Street session, its lowest level since September 3, before recovering to $78,400.

The cryptocurrency came under pressure alongside US equities as renewed Middle East tensions pushed oil prices higher and increased inflation concerns.

Analyst Rekt Capital is watching the $78,300 level, which previously acted as support following Bitcoin's failed breakout in May.

A weekly close below that level followed by a bearish retest could signal a further breakdown.

The latest move leaves Bitcoin facing pressure from both broader macroeconomic concerns and a potentially important technical support zone.