Supported by growth and tech stocks, major US equity indices opened higher on Thursday (25) and the market’s attention now turns to the annual Federal Reserve symposium in Jackson Hole to find clues about its future monetary policy path.
Before the deadline,Industrial average of the Dow Jonesdown 0.14%,Nasdaq Composite Indexup by 0.5%,S&P 500 Indexincreased by almost 0.3%,Semiconductor of PhiladelphiaThe index rose more than 1.4%.
The Chinese government invests moreRMB 1 trillion yuan ($ 146 billion), Chinese tech stocks benefited, Alibaba (BABA-USA), Baidu (BIDU-USA), JD.com (JD-USA). However, traders expected the market to continue to float, and investors waited for Fed Chairman Powell to speak at the Jackson Hole annual meeting for clues to raise interest rates.
Kansas Federal Reserve Bank President Esther George, who voted for the Federal Open Market Committee (FOMC) this year, joined the hawks on the eve of the central bank’s annual meeting, saying the Fed’s benchmark interest rate it may have to exceed 4% to beat inflation. The remarks weakened stocks and bonds which rebounded from their low in mid-June amid concerns that stocks and bonds will fall to their lows this year.
At the same time, President of the Federal Reserve Bank of Atlanta Raphael Bostic said in a recent interview that the US central bank still has time to raise interest rates this year, warning that it is still too early to say that the inflation peaked, but it could be.There were some signs of a spike in inflation and he said it was still hovering between a two-yard (50 basis point) rate hike and a three-yard (75bp) rate hike. basis points).
In terms of economic data, revised data released Thursday from the US showed that the revised annual rate of real gross domestic product (GDP) in the second quarter of the United States was pushed back to -0.6%, an increase of 0. , 3%. points from the second estimate and better than market expectations – 0.8% of the previous value equal to -0.9%. The newly revised data reflects that the US economy has fallen into a technical recession, which may not be as severe as the market imagined.
The U.S. Department of Labor released the latest data on unemployment benefits on the same day.The number of people receiving unemployment benefits last week was 243,000, a drop of 2,000 from the previously reviewed 245,000. to market expectations of 253,000. for two consecutive weeks, indicating that employment The market is strong.
In Europe, economic data from Germany, Europe’s largest economy, was mixed, with second-quarter GDP showing a more resilient performance than initially thought, although deteriorating business confidence suggested the outlook remained. uncertain. European equities trimmed gains at the close, with energy and healthcare stocks gaining the most, while retailers underperformed and fears of a Russian gas supply crisis grew.
As of 9:00 pm Thursday (25) Taipei time:
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Piloteo (PTON-US) fell 14.65% to $ 11.51 per share at the start of the trade
Peloton, a startup fitness equipment company, reported depressing earnings in fiscal 2022 fourth quarter pre-market, with a net loss widening to $ 1.24 billion, or $ 3.68 per share, from $ 313.2 million, or $ 1.05 per share, a year earlier, revenue fell 28% to $ 678.7 million from $ 936.9 million a year ago, missing market expectations of $ 718.2 millions. Plotton has provided no guidance for fiscal year 2023.
Huida (NVDA-USA) fell 1.03% to $ 170.44 per share at the start of the trade
Due to the weak global economy affecting the gaming industry, Huida’s second quarter financial report for fiscal year 2023 was gloomy, with revenue rising just 3% to $ 6.704 billion, far less than analysts’ estimate. of $ 8.1 billion and diluted earnings per share. 51% yoy at $ 0.51, again below analyst estimates of $ 1.26.
Additionally, Huida’s third-quarter financial forecast also fell short of expectations, with estimated revenue of $ 5.9 billion, lower than analysts’ expectations of $ 6.95 billion. At the same time, Huida also warned that the performance of the gaming business may continue to be sluggish and is pessimistic about the outlook.
Snowflake(SNOW-US) was up 18.53% to $ 189.04 per share at the start of trading
Data storage and analytics software company Snowflake’s second quarter revenue increased 83% to $ 497.2 million, far exceeding market estimates of $ 467.5 million and increased revenue for the full year at $ 1.905 from a range of $ 1.885 billion to $ 1.9 billion to $ 1.915 billion.
The main economic data today:
- The number of Americans who received unemployment benefits last week reported 243,000, expected 253,000, the previous value of 245,000.
- The number of people receiving unemployment benefits in the United States reported 1.415 million last week, 1.442 million are expected and the previous value was 1.434 million
- US Quarterly Real GDP Growth Rate in Q2 Revised to -0.6%, Expected -0.8%, Previously -0.9%
- The core PCE price index in the US in the second quarter was revised at an annualized rate of 4.4%, forecast at 4.4%, and to the previous value of 5.2%
- The US August Kansas Fed manufacturing index returned -9, the previous value of 7
- The US Kansas Federal Reserve Bank Manufacturing Composite Index returned 3 in August, up from 13 previously
Wall Street Analysis:
Silvia Dall’Angelo, senior economist at Federated Hermes Ltd, said Fed Chairman Powell at the annual Jackson Hole global central bank meeting is likely to respond to the market’s prematurely expected dovish stance and reiterated that the Fed’s focus will be on the fight against rising inflation over inflation.
JPMorgan’s chief global market strategist Marko Kolanovic is skeptical that the Fed can stick to a long hawk line, arguing that hyperinflation fueled by the commodity super cycle and a coronavirus renaissance will naturally subside over time. . “We argue that inflation will subside on its own as the distortion creeps in and could lead to a Fed policy shift,” he said.
Additionally, Kolanovic doesn’t expect Powell to reveal the Fed’s next move at the annual meeting, and follow-up action will depend on the state of the economic data. At the same time, Powell could also refute the Fed’s accommodative policy.
John Hardy, head of FX strategy at Saxo Bank, said that until the talks at Powell’s annual meeting are underway, the stock market is likely to be stalled.EURhe added, it will only gain momentum unless it sees a slowdown in rising gas and electricity prices, although there is strong pressure on that front.
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