Hope you’re having a productive week — here’s your opening markets snapshot.

Alibaba is making waves with a $100 million investment into X Square Robot, a Shenzhen-based embodied AI robotics startup – hinting at growth beyond software applications. Major U.S. oil companies are also expanding at record pace, with XRP surging above $3 ahead of Fed rate cut anticipations.

With GitLab seeing increased adoption of its AI-integrated DevSecOps platform, the question now is whether these signals point toward a resilient and adaptive market primed for continuous growth amid global economic shifts.

In today’s financial recap:

  • Alibaba invests $100M in embodied AI robotics

  • US oil majors expand as smaller producers decline

  • XRP price surges above $3 on Fed rate cut hopes

  • GitLab’s AI DevSecOps sees high adoption

Alibaba Pumps $100M into Embodied AI Robotics Startups

The TradeWatch: Alibaba leads a $100 million investment round in Shenzhen-based X Square Robot, which advances humanoid commercial robotics powered by embodied AI and signals disruptive growth in AI applications beyond software into physical automation.

Unpacked:

  • X Square Robot, a humanoid startup based in Shenzhen, has secured approximately $100 million in funding led by Alibaba Group Holding through Alibaba Cloud.

  • The company recently announced WALL-OSS, an end-to-end embodied foundation model, and you can find the associated code linked via GitHub and Hugging Face.

  • The startup plans to begin preparing for an initial public offering next year, although the listing location has not yet been determined.

Bottom line: This investment signals confidence in the embodied AI sector and its potential to revolutionize human-machine interactions across various industries. The move allows robotics companies to scale operations and meet growing demand for AI-powered solutions in education, hospitality, and healthcare.

US Oil Majors Expand as Smaller Producers Retreat Amid Price Pressures

The TradeWatch: American oil production is hitting record highs, driven by major companies, even as smaller producers decline due to low oil prices, while data from the Energy Information Administration (EIA) highlights an all-time high of 13.58 million barrels per day (mb/d) in June 2025.

Unpacked:

  • Overall U.S. oil production increased throughout 1H 2025, yet growth from smaller U.S. producers plateaued around mid-2024 and began to decline in 2H 2024 as lower oil prices started to kick in.

  • While small producers’ output is expected to drop by 200-250 kb/d y-o-y in the second half of the year, growth by U.S. oil majors should offset this decrease.

  • The eight members of OPEC+ have agreed to increase oil output from October by 137,000 barrels per day, but commodity experts suggest that compensation cuts by some OPEC+ members could offset any extra oil coming from the group, according to global energy consultant FGE and reported by Oilprice.com.

Bottom line: The U.S. oil sector is experiencing a slowdown in growth, but major companies are expanding, which offsets declines from smaller producers. These shifts affect the global oil output and market dynamics, demanding investors and analysts closely monitor production trends and OPEC+ decisions.

XRP Surges Above $3 Ahead of Fed Rate Cut, Gains from Rabby Wallet Integration

The TradeWatch: XRP’s price holds above $3, bolstered by its new Rabby Wallet Ethereum integration and the anticipation of Federal Reserve rate cuts, signaling growing crypto market resilience and broader institutional adoption.

Unpacked:

  • The Rabby Wallet now supports Ripple’s XRPL, allowing Ethereum-based smart contracts to run on XRPL, adding a new layer of interoperability for Ripple’s blockchain.

  • Crypto analyst Austin Hilton suggests that a 50 basis point cut from the Fed could cause XRP to “bounce back up to 3.25, 3.50 and again, maybe even blow through its all-time high”; prediction markets like Polymarket currently put the odds of such a cut around 7%.

  • Currently trading at $3.05, XRP has gained over 415% in the past year, cementing its position as the third-largest cryptocurrency by market capitalization.

Bottom line:

XRP is showing resilience, trading above $3 despite CPI concerns, and the Rabby Wallet integration is expected to bring in new use cases while attracting Ethereum and Solana developers. As the market awaits the Fed’s decision and anticipates a potential Q4 bull run, XRP holders are optimistic about further gains.

GitLab’s AI-Integrated DevSecOps Platform Drives Strong Adoption

The TradeWatch: GitLab’s AI-native DevSecOps platform sees increased adoption driven by its AI agent capabilities, strategic partnerships, solid financial results, and attractive valuation. GitLab’s hybrid pricing model and FedRAMP authorization are also key factors, positioning the company for continued growth.

Unpacked:

  • GitLab has established itself as an AI-native DevSecOps company by integrating AI across the entire software lifecycle, exemplified by its AI-powered suite, GitLab Duo.

  • GitLab Duo Agent Platform, now in public beta, allows engineers across large enterprises construct, test and deploy secure software through the use of AI agents, which automates tasks and accelerates delivery times.

  • Despite its strengths, GitLab shares trade roughly 63% below their all-time high, but investors willing to tolerate near-term volatility should consider exploring other stocks.

Bottom line: GitLab’s continuous embedding of AI, focus on security, expansion into regulated industries, and public sector contracts will likely continue pushing up share prices. Investors should watch upcoming quarters closely as GitLab plans to change its pricing from seat-based subscriptions to a hybrid seat-plus-usage-based model.

The Shortlist

  • Global Mofy AI is launching its new global-focused website and integrating AI into its brand identity.

  • Businesses are putting 22% of their profit in Bitcoin, according to a report.

  • TSMC sees its stock price target raised to $290 on strong AI demand, coupled with tailwinds from Trump-era tariffs.

  • Analysts updated outlook on XRP, citing Rabby Wallet integration for traders as they await the Fed rate cut decision.

Cheers,

— Michael & the TradeWatch.io editorial team