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Wall Street Today: Bearish trend signals a 10% to 15% correction

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Moomoo Recap US joined discussion · Aug 2, 2021 19:14
Wall Street Today: Bearish trend signals a 10% to 15% correction
Asia stocks set to dip as growth risk boosts bonds: markets wrap
Asian stocks look set to slip early Tuesday after U.S. equities turned lower, Treasury yields tumbled and oil slid on concerns that the economic recovery from the pandemic is losing momentum.
Futures fell in Japan and Australia and were little changed in Hong Kong. The S&P 500 ended with a modest drop and the 10-year U.S. Treasury yield fell as low as 1.15% as the pandemic and signs of robust but softer U.S. manufacturing growth soured sentiment. U.S. equity contracts were steady in early Asia trading.
Fed’s Waller says September taper call may be warranted

Federal Reserve Governor Christopher Waller said that if the next two monthly U.S. employment reports show continued gains, he could back an announcement soon on scaling back the central bank’s bond purchases.
“I think you could be ready to do an announcement by September,” Waller said Monday in an interview on CNBC. “That depends on what the next two jobs reports do. If they come in as strong as the last one, then I think you have made the progress you need. If they don’t, then I think you are probably going to have to push things back a couple of months.”
Fed Chairman Powell’s approach to regulation has drawn criticism from some democrats
As President Biden nears a decision about who should be the next Federal Reserve chairman, the current chief is getting criticized by progressives for his record on bank regulation and the postcrisis rulebook for Wall Street.
During Chairman Jerome Powell’s nearly four years as head of the Fed, the central bank has revamped big-bank stress tests, tailored its rules for U.S. lenders based on their size and simplified key postcrisis regulations such as the Volcker rule prohibition on proprietary trading.
Charts suggest S&P 500 may struggle in August while gold looks set to rally, Cramer says

Investors may be able to find positive returns in gold while the $S&P 500 Index(.SPX.US)$ enters a historically challenging month, CNBC’s Jim Cramer said Monday.
“The charts, as interpreted by the legendary Larry Williams, suggest that August could be a tough month for the S&P 500, but a terrific month for gold. Given the big picture backdrop right now, that wouldn’t surprise me one bit,” the “Mad Money” host said.
Looking at the S&P 500, in particular, Cramer said Williams sees diminishing breadth when tallying the number of advancing stocks versus declining stocks. This is in addition to a difficult seasonal period for the broad equity index, which is up 16.8% year to date, Cramer said.
Bearish trend signals stocks are vulnerable to a 10% to 15% correction
When the S&P 500, Nasdaq and the CBOE Volatility Index rise together, BTIG’s Julian Emanuel warns it’s often a precursor to a 10% to 15% pullback.
“Whenever we’ve seen that going back to the beginning of 2018, we were essentially weeks away from a correction,” the firm’s chief equity and derivatives strategist told CNBC’s “Trading Nation” on Monday. “The most recent one being last September. We think history could in fact repeat itself.”
According to Emanuel, the bearish trend has been happening for a couple of months.
Yet Emanuel, a long-term bull, regards near-term trouble as healthy because it would give the market a key refresh.
Google will abandon Qualcomm and build its own smartphone processors this year
$Alphabet-C(GOOG.US)$ announced Monday it will build its own smartphone processor, called Google Tensor, that will power its new Pixel 6 and Pixel 6 Pro phones this fall.
It’s another example of a company building its own chips to create what it felt wasn’t possible with those already on the market. In this case, Google is ditching $Qualcomm(QCOM.US)$ . The move follows $Apple(AAPL.US)$ , which is using its own processors in its new computers instead of Intel chips. And like Apple, Google is using an Arm-based architecture. Arm processors are lower power and are used across the industry for mobile devices, from phones to tablets and laptops.
Qualcomm said it will continue to work closely with Google on current and future products based on its Snapdragon platform.
US government bonds rally after disappointing factory data

US government bonds rallied on Monday, reflecting mounting concern over decelerating economic growth in the US, after a survey on America’s factory sector showed activity was increasing more slowly than economists had expected.
The yield on the 10-year Treasury note fell 0.05 percentage points in New York dealings on Monday to 1.18 per cent, nearing a trough of 1.126 per cent hit on July 20.
Wall Street Today: Bearish trend signals a 10% to 15% correction
The decline in the bond yield, which is one of the most important measures in setting global borrowing costs, came after the Institute for Supply Management said its purchasing managers’ index fell to 59.5 in July from 60.6 the previous month.
More US cities and companies bring back masks to stop Covid surge
Some US cities and companies are reintroducing face mask requirements, even for people who are fully vaccinated, in an effort to counter a jump in infections caused by the more transmissible variant of the virus.
San Francisco and six other Bay Area counties on Monday reinstated a universal mask mandate for indoor public places.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more
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