US JOBS SMASH EXPECTATIONS August nonfarm payrolls surged +162K, crushing the +53K consensus. Unemployment held at 4.1%, in line with expectations. Private payrolls rose +127K, while government added +35K. Hourly earnings increased +0.27% MoM / +3.09% YoY. Labor-force participation: 61.6%. Previous payrolls revised to +21K in July and +31K in June.

OPENAI’S JALAPENO CHIP OUTPACES NVIDIA IN TESTS OpenAI says its new Jalapeno AI chip beat Nvidia’s GB300 in power efficiency and response speed during testing. Developed with Broadcom, Jalapeno targets AI inference and could lower data-center costs while handling large models. OpenAI plans to deploy the chip later this year, while developing second- and third-generation versions. However, Jalapeno wasn’t tested against Nvidia’s newer Vera Rubin chips.

GOLDMAN: MIDDLE EAST ESCALATION IS TOP MARKET RISK Goldman Sachs warned that renewed conflict in the Middle East or a prolonged Strait of Hormuz shutdown is the “most obvious downside threat” for markets. Analyst Dominic Wilson said easing geopolitical fears have driven a strong equity and AI-led rally, but warned the downside tail risk is still underpriced. The bank also cautioned on stretched AI valuations and pushed back expectations for rate cuts through 2026, despite current market optimism.

UNDERSEA CABLES VULNERABLE IN STRAIT OF HORMUZ An Iranian-linked news agency says undersea data cables in the Strait of Hormuz are vulnerable, warning that damage—accidental or deliberate—could cause major outages across the Gulf. The report highlights growing risks to critical infrastructure, noting similar disruptions have already occurred in the Red Sea.

BESSENT: MARKET TELLS ME THERE HAS BEEN NO TRANSFER FROM OIL PRICES TO INFLATION EXPECTATIONS

ARAMCO EYES RED SEA OIL ROUTE TO BYPASS BLOCKED HORMUZ Saudi Aramco is urgently exploring plans to export more crude via its Red Sea port of Yanbu to sidestep the effectively closed Strait of Hormuz. The world’s biggest oil exporter normally ships most cargoes from Persian Gulf terminals, but last weekend’s strike has left dozens of vessels stranded. Aramco’s 5-million-barrel-a-day east-west pipeline can now divert oil straight to the Red Sea. The company has already asked Asian buyers and shippers to switch loadings to Yanbu, according to people familiar with the talks. It has also shut its giant Ras Tanura refinery after a drone strike, raising fears of full storage tanks and possible production cuts.

TRUMP ON TARIFFS: U.S. SUPREME COURT 'ACCIDENTALLY AND UNWITTINGLY' GAVE PRESIDENT 'FAR MORE POWERS AND STRENGTH' THAN BEFORE THEIR RULING

TARGETS AND TIMING OF RUSSIAN COUNTERSTRIKE AFTER ATTACK ON PUTIN'S STATE RESIDENCE DETERMINED - TASS