Major U.S. stock indexes were mixed on Monday (21st). Investors are waiting for the last quarter financial report released this week by artificial intelligence (AI) chip leader Huida. In addition, the global central bank annual meeting will also start this week. The Federal Reserve (Fed) Chairman Jerome Powell’s speech will be the key to future policy clues on interest rates and fluctuations in US stocks.
before the deadline,Dow Jones Industrial Averagefell nearly 50 points or nearly 0.14%,Nasdaq Composite Indexrose more than 100 points or nearly 0.8%,S&P 500 Indexup nearly 0.3%,Philadelphia SemiconductorThe index rose more than 1%.
Major index futures were higher ahead of the U.S. stock market open on Monday, a sign of a rebound in U.S. stocks after their heavy losses so far in August. U.S. bond prices generally weakened, and yields resumed their upward momentum.10-Year Treasury Bond YieldIt climbed to its highest level since November 2007, while 30-year yields were near 2011 highs.
Before the U.S. stock market rebounded,S&P 500 IndexIt fell 4.8% for the month as investors bet that interest rates could stay elevated for longer. The next clue to the outlook for U.S. monetary policy will come at this week’s annual central bank meeting in Jackson Hole, Wyoming, where Fed Chairman Jerome Powell will speak on Friday (25th).
Bloomberg economist Anna Wong predicts that Powell will deliver a more balanced speech at the central bank’s annual meeting, signaling the end of the tightening cycle while emphasizing the need to keep interest rates higher for longer.
David Henry, investment manager at Quilter Cheviot, said, “The Fed has taken almost all the necessary measures to bring inflation down to the target level, and it would be a big surprise if there is a big increase in interest rates in the future.
Meanwhile, two of Wall Street’s top strategists were divided on the outlook for U.S. stocks after a debate intensified over whether the U.S. economy could avoid a recession. Morgan Stanley’s Michael Wilson, a staunch bear on U.S. stocks, said sentiment could weaken further if investors start to “question the sustainability of economic resilience.” But David Kostin, chief U.S. equity strategist at Goldman Sachs, believes that if the U.S. economy remains on track for a soft landing, investors still have room to further increase their holdings.
Wilson said U.S. stock investors are now too optimistic about a soft landing, while inflation weakens the ability of U.S. companies to raise prices. Kostin said that if market conditions continue to improve, the recent decline in Goldman Sachs’ stock market sentiment gauge may prove to be short-lived.
Elsewhere, more positive sentiment was dampened by confusion over China’s policy approach to stem a slump in the property market. Chinese banks on Monday cut prime rates on one-year loans by 10 basis points and left prime rates on five-year loans unchanged, despite calls from policymakers to increase lending. Traders had expected a 15 basis point cut in both rates.
“There will be more volatility ahead as the market resents the lack of stimulus in China, especially the lack of supply of consumer credit,” said Evgenia Molotova, senior investment manager at Pictet Asset Management. The risk is that underlying inflation will resurface due to strong consumer spending and wage growth.”
In terms of corporate financial reports, this week AI chip giant Huida (NVDA-US) will report last-quarter earnings this week, and the company’s blowout revenue forecast has helped ignite a rally in AI stocks this year.
As of 21:00 on Monday (21st) Taipei time: Focus stocks:
Tesla (TSLA-US) rose 4.39 percent to $224.94 a share in early trade
Tesla has introduced Apple Shortcuts integration in a new version of its iOS mobile app to help improve its self-driving capabilities and use Siri to control the vehicle. Tesla owners who use the iPhone can complete actions such as closing windows, adjusting the volume, and setting the temperature of the air conditioner through Siri voice. If you want to control the vehicle through Siri, you also need to use the Shortcuts app.
Meta Platforms(META-US) rose 0.98 percent to $286.04 a share in early trade
Facebook parent company Meta will launch an open source AI software as soon as next week, which aims to explain that developers can automatically generate programming code. It is another bold move that may subvert the AI field after the Llama 2 language model.
VinFast Auto (VFS-US) up 5.91% in early trade to $16.31 per share
The “Vietnamese Tesla” VinFast Auto closed down 23% last Friday at $15.40 per share. On Monday, US stocks fell to $11.61 per share before the market, falling for the third consecutive trading day. The daily closing price fell sharply at US$37.06 per share. Since the listing of VinFast in the US, the net worth of Vietnam’s richest man has shrunk by about 52% to US$21.2 billion.
Today’s key economic data:
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Wall Street Analysis:
Marko Kolanovic, chief equity strategist at JPMorgan Chase & Co., said U.S. consumers have already exhausted excess savings during the epidemic, and consumer spending may slow further as student loan payments restart in October. Weak consumption is only one of the reasons why U.S. stocks will continue to fall. Other worrisome factors include deteriorating corporate profit margins, high interest rates and reduced incentives for stock buyback programs.he estimatedS&P 500 IndexIt will end the year at 4,200, down about 4 percent from current levels, and the U.S. economy is also forecast to slip into recession sometime early next year.
The latest bout of market turmoil, which led to a third straight week of losses for U.S. stocks, could be an opportunity for investors to buy on dips, according to a team led by Citi analyst Scott Chronert. late May,S&P 500 IndexDriven by the AI mania, it entered the range of 4,200-4,300 points. If the index can fall back to this range, it will provide a good re-entry opportunity for tactical investors and long-term investors.
2023-08-21 13:54:00
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