On Monday Eastern Time, the three major US stock indices collectively closed higher. As of the close, the Dow Jones Industrial Average rose 0.58%, the Nasdaq rose 1.39%, and the S&P 500 index rose 0.97%.
Most large tech stocks have risen, with Nvidia and AMD up over 4%, Tesla up over 3%, and Google up over 2%.
On the news front, on the 23rd of this month, Federal Reserve Chairman Powell will give a speech at the Jackson Hole annual meeting, and investors generally believe that he will reveal signals of interest rate cuts. The latest survey shows that the Federal Reserve will cut interest rates by 25 basis points at each of its remaining three meetings in 2024, one more than last month's forecast.
NVIDIA rebounds over 24% in six days
On Monday (19th) Eastern Time, the three major stock indexes in the United States collectively closed higher, with the S&P 500 index rising 0.97% and the Nasdaq rising 1.39%, both recording eight consecutive gains; The Dow Jones Industrial Average rose 0.58%.
According to foreign media analysis, the US stock market had a turbulent start in early August, with disappointing data exacerbating investors' concerns about a US economic recession. But last week's new data seemed to calm the anxious market and boost hopes of an economic soft landing.
On the 23rd of this month, Federal Reserve Chairman Powell will give a speech at the Jackson Hole annual meeting, and investors generally believe that he will reveal signals of interest rate cuts. The latest Reuters survey shows that the Federal Reserve will cut interest rates by 25 basis points at each of its remaining three meetings in 2024, one more cut than last month's forecast.
On the market, most large technology stocks closed higher, with Nvidia rising 4.35% and rebounding over 24% in six trading days, resulting in a market value surge of $516.6 billion (approximately RMB 3683 trillion); Amazon rose 0.66%, Netflix soared 2.15%, Google rose 2.28%, Facebook rose 0.35%, Microsoft rose 0.73%, and Apple fell 0.07%.
Popular Chinese concept stocks generally rose, with iQiyi rising over 5%, Ideal Auto rising over 4%, Xiaopeng Motors and Bilibili rising over 3%, NetEase and NIO rising over 2%, Futu Holdings, Weibo, Baidu, Tencent Music rising over 1%, and Alibaba and JD.com rising slightly. Vipshop will drop by over 1%.
International crude oil prices plummeted, with WTI September crude oil futures closing down $2.28, or 2.97%, at $74.37 per barrel; Brent crude oil futures for October closed down $2.02, or 2.54%, at $77.66 per barrel.
The heavyweight conference will be held this week
According to the China Securities Journal, the Global Central Bank Annual Economic Policy Seminar will be held in Jackson Hole from August 22nd to 24th, and Powell will give a speech on the economic outlook at 10am Eastern Time on August 23rd (10pm Beijing Time on August 23rd).
In recent years, this conference has not only served as a platform for policy makers and economists to exchange ideas, but has also become a barometer for the Federal Reserve's monetary policy. Analysis suggests that Powell's speech next week will pave the way for a rate cut in September, and the specific magnitude of the cut will be determined by the August non farm payroll report released at the end of the month.
Bank of America Merrill Lynch believes that Powell's speech will revolve around "labor market stability". If he makes a more resolute statement on preventing a weak labor market, it will be seen as an important policy signal.
According to media reports, renowned investment bank Goldman Sachs has pointed out that the market may receive signals of "interest rate cut confidence" and "data dependence". It is expected that Powell's information and off exchange interviews will be similar to what has been heard in the past few weeks, that is, the Federal Reserve is now close to cutting interest rates, but the degree of easing will depend on upcoming data.
Currently, investors are widely betting that the Federal Reserve will cut interest rates for the first time in four years at next month's meeting, with a market expectation of a 70% chance of a 25 basis point rate cut.