This report is from today’s CNBC Daily Open, our newsletter for international markets. CNBC Daily Open informs investors what they need to know, no matter where they are. Like what you see? You can subscribe Here.

What you need to know today

Winning streak
The S&P 500 and Nasdaq Composite rose for the eighth straight session, up 0.97% and 1.39%, respectively, snapping their longest winning streaks so far this year. The Dow Jones Industrial Average jumped 0.58%. Meanwhile, the yield on the 10-year U.S. Treasury note was little changed as investors await the minutes of the Federal Reserve meeting and Chairman Jerome Powell’s speech in Jackson Hole on Friday. U.S. oil prices fell nearly 3% as the U.S. pushes for a ceasefire in the Middle East.

AMD deal
Advanced Micro Devices is acquiring server maker ZT Systems for $4.9 billion to bolster its AI chip and hardware portfolio. The move will allow AMD to bring AI chips to market at the scale demanded by customers such as Microsoft and compete more effectively with Nvidia. AMD, which had $5.34 billion in cash and short-term investments in the second quarter, plans to finance 75 percent of the acquisition with cash and the rest with stock. The company also plans to split and sell its server manufacturing business because it does not want to compete with companies such as Super Micro Computer, CEO Lisa Su said.

Layoffs at GM
General Motors is laying off more than 1,000 employees worldwide in its software and services division as part of a review to streamline operations, CNBC has learned. The cuts will affect about 600 jobs at its technology campus near Detroit. The layoffs, which affect 1.3% of GM’s global workforce, come as automakers, including GM, focus on cutting costs amid industry challenges while investing heavily in electric and so-called software-defined vehicles.

Boeing announces 777X discontinuation
Boeing has paused flight testing of the 777X after damage to a structural component was discovered. Three 777-9 test aircraft were also grounded due to damage. Boeing has notified the Federal Aviation Administration and its customers, who have ordered 481 777Xs. The impact on certification and deliveries is unclear, but the issue could further delay the already backlogged 777X program. The news comes as new CEO Kelly Ortberg tries to lead the company out of its safety crisis.

Asian markets are mostly growing
Markets in Asia-Pacific were mostly up, led by Japan’s Nikkei 225, which rose 2%, driven by utilities and healthcare stocks. Australia’s S&P/ASX 200 rose 0.17%, while the Reserve Bank of Australia signaled it was “unlikely” to cut interest rates in the near term as inflation was “above target” and “persistent.” Hong Kong’s Hang Seng Index lost 0.36% after property company Kaisa announced a debt restructuring agreement. Mainland China’s CSI 300 lost 0.7% as the central bank left interest rates unchanged. South Korea’s Kospi rose 0.89%.

(PRO) Metric to watch
Veteran investor Mark Mobius focuses on a metric he considers “historically significant” and that could potentially have a detrimental impact on U.S. stocks at a time when markets are experiencing volatility.

The conclusion

AMD estimates that the AI ​​chip market will reach $400 billion by 2027. CEO Lisa Su has set her sights on capturing a significant share of that market, but the company will have to compete with industry leader Nvidia to do so. Analysts predict that Nvidia’s AI revenue from data centers will reach $105.9 billion this year, while AMD lags behind at $4.5 billion.

It’s as if Microsoft’s Bing is challenging Google’s search business. But AMD is gaining customers, including Microsoft and Meta Platform. And the company is looking to strengthen its offerings with the acquisition of ZK Servers to better compete with Nvidia.

“I don’t think anything changes in the next year or two,” said Doug Clinton, managing partner at Deepwater Asset Management, on CNBC’s “Closing Bell.” He stressed that AMD’s focus is on becoming more competitive in building clusters and helping hyperscalers build data centers. But Nvidia already excels in that space. “It’s not a big threat,” Clinton added.

Nvidia’s dominance is so strong that Bank of America expects its earnings report on August 28 to be a bigger market catalyst than Powell’s speech at Jackson Hole on August 23. CNBC’s Sarah Min reports the bank’s views in more detail.

While investors feared a recession at the beginning of the month and therefore triggered a wave of selling, Goldman Sachs has reduced the probability of a recession to 20 percent following more favorable data on employment and retail sales.

Jan Hatzius, chief economist at Goldman Sachs, told CNBC’s “Squawk on the Street” that the investment bank could lower the probability even further depending on the next jobs report in September. In the meantime, Hatzius doesn’t think Powell will be “pinned down” on what the Fed’s next move will be.

“I think he will not be specific about the measures that are coming. I am sure his comments will be consistent with the idea that the risks are more two-sided and there are signs of moderation in some areas and, more importantly or equally importantly, inflation has come down. I don’t think he will commit himself one way or the other,” Hatzius said.

“If the data supports 50 (basis points), they should do 50, and I think they will do 50, but I think it’s much more likely that things look good enough that a series of 25 basis point cuts will do the job they want.”

— CNBC’s Alex Harring, Kevin Breuninger, Samantha Subin, Jenni Reid, Rohan Goswami, Michael Wayland and Spencer Kimball contributed to this report.