US tech stocks have stumbled after a sharp rally, with investors increasingly cautious over AI-linked valuations and shifting market conditions. The S&P 500 tech sector has dropped around 2.5% this week, while the Nasdaq has slipped 2%, led by losses in Nvidia and Palantir.
The fall follows a 50% surge in tech shares since April, far outpacing the broader market and pushing valuations to year-highs. Concerns are growing that investor enthusiasm around AI has become overheated, with some funds reducing their exposure ahead of expected interest rate guidance.
US market watchers are now focused on Federal Reserve Chair Jerome Powell’s speech at Jackson Hole, which could signal if rate cuts are on the horizon. Tech stocks, already heavily weighted in many portfolios, are particularly vulnerable to higher rates due to their stretched price-to-earnings ratios.
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China is preparing to take a major step in the digital currency race by considering yuan-backed stablecoins, marking a sharp reversal from its earlier tough stance on cryptocurrencies. According to sources, Beijing’s cabinet will soon review a national strategy, with Hong Kong and Shanghai expected to spearhead the rollout thanks to Hong Kong’s recently passed Stablecoins Bill.
The move comes as Japan accelerates its own efforts. JPYC Inc., a Japanese fintech firm, has received regulatory approval to issue a yen-backed stablecoin, also called JPYC. The company plans to sell up to 1 trillion yen ($68 billion) worth of the tokens within three years, each pegged 1:1 to the yen and backed by liquid assets such as government bonds.
These parallel developments in East Asia could challenge the dominance of dollar-backed stablecoins, which currently make up nearly the entire global market. Analysts say the introduction of major Asian currencies into the mix could reshape digital finance and add momentum to regulatory frameworks emerging worldwide.
Stablecoins are increasingly seen as a bridge between traditional finance and digital assets, offering stability that other cryptocurrencies lack. Despite regulatory hurdles and slow adoption, the market is expected to surge to $4 trillion by 2030, signalling how pivotal the latest steps from China and Japan could be for the global financial system.
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Citi has expanded its digital client platform, CitiDirect Commercial Banking, with new AI capabilities to improve customer service and security.
The platform now supports over half of Citi’s global commercial banking client base and handles around 2.3 million sessions.
AI features assist in fraud detection, automate customer queries, and provide real-time onboarding updates and guidance.
KYC renewals have been simplified through automated alerts and pre-filled forms, cutting effort and processing time for clients.
Live in markets including the UK, US, India, and others, the platform has received positive feedback from over 10,000 users. Citi says the enhancements are part of a broader effort to make mid-sized corporate banking faster, more innovative, and more efficient.
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Japan has pledged $5.5 billion in loans and announced an ambitious AI training programme to deepen economic ties with Africa.
At TICAD 9, Prime Minister Shigeru Ishiba proposed creating an Indian Ocean–Africa economic zone to link African nations with Asia and the Middle East.
Japan will also support training 30,000 AI experts over three years to drive digital transformation and job growth across the continent.
The initiative comes amid growing calls from leaders like António Guterres and João Lourenço to overhaul global finance systems and empower African representation.
Japan’s move signals renewed interest in African engagement, as the US scales back and China’s influence expands across the region.
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Honda has entered a multiyear partnership with US-based startup Helm.ai to enhance self-driving systems in its vehicles.
The collaboration focuses on developing advanced driver assistance for Honda’s mass market range, with a target launch set for 2027.
Helm.ai, backed by over $100 million in funding, specialises in AI camera-based perception software and simulation technologies.
Honda has held an equity stake in the firm since 2021, having invested at least $30 million to support early-stage development.
The move places Honda among major global carmakers aiming to deliver partial automation on highways and regular roads. Existing systems like GM’s SuperCruise and Tesla’s Autopilot have already pushed ahead in the driver assistance space.
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Imagine dreaming of your next holiday and feeling a rush of excitement. That emotion is when your attention is most engaged. Neuro-contextual advertising aims to meet you at such emotional peaks.
Neuro-contextual AI goes beyond page-level relevance. It interprets emotional signals of interest and intent in real time while preserving user privacy. It asks why users interact with content at a specific moment, not just what they view.
When ads align with emotion, interest and intention, engagement rises. A car ad may shift tone accordingly, action-fuelled visuals for thrill seekers and softer, nostalgic tones for someone browsing family stories.
Emotions shape memory and decisions. Emotionally intelligent advertising fosters connection, meaning and loyalty rather than just attention.
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Google Translate may soon evolve into a full-featured language learning tool, introducing AI-powered lessons rivalling apps like Duolingo.
The latest Translate app release recently uncovered a hidden feature called Practice. It enables users to take part in interactive learning scenarios.
Early tests allow learners to choose languages such as Spanish and French, then engage with situational exercises from beginner to advanced levels.
The tool personalises lessons using AI, adapting difficulty and content based on a user’s goals, such as preparing for specific trips.
Users can track progress, receive daily practice reminders, and customise prompts for listening and speaking drills through a dedicated settings panel.
The feature resembles gamified learning apps and may join Google’s premium AI offerings, though pricing and launch plans remain unconfirmed.
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Meta is launching a research lab focused on superintelligence, led by Scale AI founder Alexandr Wang, in an attempt to regain ground in the global AI race.
Mark Zuckerberg is reportedly in talks to invest billions into Scale, reflecting strong confidence in Wang’s data-driven approach and industry influence.
While Meta’s past efforts with its Llama models gained traction, its latest release, Llama 4, failed to meet expectations and drew criticism.
Wang’s appointment arrives during an ongoing talent exodus from Meta, with several senior AI researchers departing for rivals or founding startups.
The new lab is separate from Meta’s existing FAIR division, led by Yann LeCun, who has dismissed the idea of chasing superintelligence. Meta’s partnership with Scale mirrors deals by Microsoft, Amazon, and Google, aiming to secure top AI talent without formal acquisitions.
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US quantum computing firm Strangeworks has expanded its European presence by acquiring German company Quantagonia. The merger allows organisations to tackle complex planning and optimisation using classical, hybrid, quantum, and quantum-inspired technologies.
Quantagonia, founded in 2021, develops AI-powered, quantum-ready planning tools that combine optimisation, AI, and natural language interfaces. The technology enables experts and non-technical users to solve problems across industries, including life sciences, finance, energy, and logistics.
The acquisition removes barriers to advanced decision-making and opens new go-to-market opportunities in previously underserved sectors.
The combined entity will merge Quantagonia’s solver engine and AI decision-making tools with Strangeworks’ AI and quantum infrastructure. The approach lets enterprises run multiple solvers in parallel and solve problems using natural language without technical expertise.
Strangeworks has strengthened its strategic European foothold, adding to its recent expansion in India and existing operations in the US and APAC. Executives said the merger boosts global growth and broadens access to sophisticated optimisation tools.
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Bitcoin and Ether fell on Tuesday as traders took profits following a recent market rally and positioned themselves ahead of upcoming macroeconomic events. Bitcoin dropped 2.78% to $113,234, briefly trading as low as $112,709, while Ether fell 5.44% to $4,108.
Analysts attribute the declines to profit-taking and leveraged liquidations after Bitcoin reached an all-time high earlier this month. Market participants take a wait-and-see approach, with ether key levels at $4,200 support and $3,900 downside risk.
Spot Bitcoin and Ether ETFs are also being closely monitored. ETFs have recently seen net outflows after strong inflows in July and early August, signalling cautious investor sentiment.
Traders are now focused on July’s Federal Open Market Committee meeting minutes. Federal Reserve Chair Jerome Powell’s Jackson Hole speech on Friday could trigger sharp market movements depending on policy signals.
Investors remain cautious, positioning for Powell’s remarks while weighing the potential impact of expected rate cuts in September. Analysts suggest the market may consolidate until greater clarity emerges on monetary policy.
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