US stock indexes are still not rising

It failed US stock index In completing the increase after a weak auction for the sale of financial bonds worth $ 42 billion, it revealed the fragility of the markets due to historical volatility.

After a rise led by accommodation signals from the Bank of Japan, the S&P 500 index gave up its gains. Investors avoided the auction US bonds For 10 years, meaning that the result is significantly higher than the pre-sale guide. Weaker-than-expected demand provided an indication that the recent rally may have ended. Treasuries were also under pressure as 17 high-quality issuers rushed to offer $31.8 billion in debt, the largest investment-grade issuance in the US this year.

Confidence control

Nationwide’s Mark Hackett says recent events have been a “master class” in how emotions can dominate market movements, especially when sentiment and concentration is almost universally optimistic.

“Stocks remain at risk,” said Fouad Razaqzadeh of City Index and Forex.com, adding: “More evidence of a bottom is needed to encourage bulls to re-enter the market, sentiment remained careful.” confident about buying stocks in this recent downturn, especially with the news that the US Consumer Price Index is approaching next week.”
The S&P 500 index fell 0.8% after rising nearly 2% earlier in the session. Nvidia Corp.’s stock price was Super Micro Computer’s stock price declined due to disappointing earnings. Airbnb shares fell amid weak expectations. Micron Technology is starting its buyback program.
The 10-year Treasury yield rose six basis points to 3.95%. The value of the Japanese yen fell by 2%. The Mexican peso led a rally in emerging markets, easing pressure on currencies that had been hit as investors abandoned yen-backed bets on riskier assets.

Sold out

Despite the correction, JPMorgan strategists say there is little evidence that stocks have entered oversold territory as they did in October 2023, for example.
“In our calculation of global equity allocations, returning to post-2015 levels, equity prices would have to fall an additional 8% from their current levels,” wrote Nikolaos Panigirtzoglou and colleagues in a note on Wednesday.
The previous gains in stocks were supported by confidence in Japan after the large fluctuations in the country’s stock prices over the past week. These movements were exacerbated by the belief that Federal Reserve It will cut interest rates more aggressively, prompting traders to quickly pull back from once-popular yen interest trades, including crowded positions in US technology stocks.

The global decline in interest rate trading caused by conditions Bank of Japan Last week’s surprisingly tighter sentiment, which led to a significant increase in value, has fallen sharply, according to Quincy Crosby of LPL Financial.

She said: “World markets felt comfortable with the decline in the pace of disruption, but there is a relationship Yen to dollar It is also an integral part of interest trading accounts. A weak dollar, driven by the market’s perception that the Fed will begin an easing cycle soon, should help support a stronger yen, which is negative for trade.”

Fear of decline

Markets have been damaged by weak US data recently, but it is still too early to indicate that the economy is heading for a recession, according to the Franklin Templeton Institute. After a rise in Treasuries, it “makes sense” to take some profits, writes Stephen Dover.
US Treasury yields are likely to be very low without “broad evidence of a significant downturn in either the labor market or market activity,” according to strategists at Goldman Sachs Group .
“The reason for a meaningful rally from current levels is that one (or both) of these risks materialize,” wrote William Marshall and Bill Zhou, and “under more moderate outcomes, we believes that average results are likely to be higher than current levels. “
FHN Financial’s Lowell Cumbernall sees Treasury yields now well above Monday’s lows, reflecting a sense of calm after the turmoil in financial markets at the start of this week.
“It is too early to call the frenzy over, however, as Treasury yields could move lower during the weak trading period in August and lack of data the rest of this week,” he said.

Achievement of the most important indicators:

• The S&P 500 index was down 0.8% at 4:04pm New York time.
• The Nasdaq 100 index fell by 1.2%.
• Dow Jones industrial average fell 0.6%
• The Bloomberg Dollar Spot Index rose 0.1%.
• Bitcoin price fell by 3% to $54,848.88
• The value of “Ether” decreases by 5.7% to $2,348.53
• The price of gold in spot transactions fell 0.2% to $2,386.65 an ounce