Wall Street rebounds after a three-day slump
US stocks finished higher amid a broad-based rebound, suggesting that investors may bid for a peak of hawkishness by the Fed ahead of Friday’s narrative at the Jackson Hole Symposium, an annual meeting of central bankers to discuss important economic issues. While bond yields were slightly higher, the probability of a 75-bps rate hike strengthened to 60.5% overnight, according to the futures pricing on the CEM Group FedWatch Tool.
Dow up 0.19%, S&P 500 rising 0.3%, and Nasdaq advancing 0.41%. All the 11 sectors in the S&P 500 were higher.
Energy stocks shined: OXY (+6.88%), DVN (+3.56%), XOM (+4.17%)
Tech mixed: APPL (-0.22%), AMZN (+0.28%), GOOGL (-0.36%), MSFT (-0.5%), META (-1.2%), TSLA (+2.23%), NVDA (+0.84), NFLX (0.88%), COIN (+0.32%)
Financials down: JPM (-1.05%), C (-0.7%), WFC (-0.16%)
Sluggish economic data: The US pending home sales index fell to the lowest level since March 2020. The core durable goods orders climbed 0.3%, slightly higher than expected.
Nvidia’s Q2 FY23 earnings missed: Rev: $6.70B vs. $6.87B est., up 3% annually. EPS: $0.51 vs. $0.56, down 51% annually
Upcoming data & event: US Q2 GDP (Prelim), weekly jobless claims, Jackson Hole Symposium kicks off
Risk-on boosts Asian markets to open higher
The NZX 50 was flat at the open. NZD/USD fell 0.3% to 0.6190, consolidating above 0.6170, a near-term support. The retail sales data for the second quarter is in the spotlight for the local markets.
ASX 200 is set to open higher up 0.22%, futures up 0.45%. AUD/USD was down 0.40% to 0.6910, with near-term support at 0.6850. No major economic data for today.
HSI futures are up 0.12%, pointing to a slightly higher open in HKEX. Chinese stocks were under pressure due to a drop in tech stocks on Wednesday. XPeng Q2 earnings missed, EPS: -$0.46 vs. -$0.12 est. Rev: $1.1B, up 87% annually.
USD loses steam as risk-on recovers: The US dollar index rose 0.01% to 108.56. The other G10 currencies were little changed against the US dollar as market participants were waiting for clues from the Fed.
Crude oil rises for the third straight trading day: Oil prices rose and continued to bounce on the news that OPEC+ may cut output, with Iran’s nuclear negotiation in a stalemate.
WTI futures (Nymex) up 0.37%, to $95. 24. Brent futures (ICE) up 1%, to $101.22.
Precious metals rebounded as USD upside momentum slowed: The Comex gold futures rose 0.17%, to $1,764.50 per ounce. Comex Silver futures were up 0.51% to US$19.07 per ounce.
Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.