[Morning Report] Dow Average falls drastically, atmosphere deteriorates due to NVIDIA stalls FRB officials suggest interest rates are close to peak - before Jackson Hole opens

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Fed Officials Suggest Interest Rates Are Close to Peak - Additional Interest Rate Hikes Are Not Ruled Out
On the 24th, two US financial officials expressed the view that interest rate hikes may be coming to an end before the opening of the Jackson Hole meeting (annual symposium hosted by the Kansas City Fed). Meanwhile, one person stated that additional interest rate hikes will not be ruled out until a further decline in inflation is confirmed and a clear trajectory is confirmed.
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The Dow average fell drastically, and NVIDIA stalled, and the overall atmosphere deteriorated
In the NY stock market, in addition to the Dow average falling drastically, IT/high-tech stocks were also pushed back to sale, and the NASDAQ also depreciated drastically. Good financial results were announced after closing the day before $NVIDIA (NVDA.US)$The fact that it stalled made the market mood heavy.

Bond yield premiums on stocks are at their highest in 15 years — a new era of bonds
According to data compiled by Bloomberg, bonds offer a yield premium of 180 basis points (bp, 1 bp = 0.01%) for stock dividend yields. This difference is the biggest in the past 15 years. Since traders are betting on the end () of the era of low interest rates, there is a high possibility that this difference will continue or widen further in the future.

ECB Centeno says downside risks of the economy are becoming apparent
European Central Bank (ECB) policy committee member and Bank Centeno Portugal (central bank) president expressed the idea that it is necessary for officials to be cautious when deciding the next steps, assuming that the risks to the economy that had been pointed out earlier are becoming reality.

Is the US job market an “ally” of the FRB, wage growth decelerates - Indie
The US job search site Indeed pointed out that wage growth continues to slow as the inflation rate declines in the United States, and it is encouraging news for the US financial authorities. According to Indeed's wage tracker, wages for job advertisements posted on the company's site rose 4.7% on an annual basis in July. There was an increase of 5.8% in April and 8% in July last year, respectively.

New US unemployment insurance claims fell to 230,000, below expectations - low for the first time in 3 weeks
In the US, the number of new applications for unemployment insurance declined last week, reaching a low level for the first time in 3 weeks. It is suggested that demand for workers is still healthy. The number of continuous recipients of unemployment insurance declined to 1.7 million in the week ending the 12th. On a pre-seasonally adjusted basis, the number of applications last week dropped to around 198,000, a low level since October last year.

US mortgage interest rate, 7.23% for 30 years, high level since 2001
According to data released by the US Federal Home Loan and Mortgage Corporation (Freddie Mac) on the 24th, the average interest rate for 30-year mortgages (fixed interest rate type) was 7.23%, up 14 basis points (bp) from the previous week, and reached a high since 2001/6. Interest rates have been rising for 5 consecutive weeks.

US gap turns into surplus for the May-July fiscal year sales fall short of expectations
Major US casual clothing retailer$GAP (GPS.US) $In the financial results for the fiscal year ending May-July (2nd quarter) announced on the 24th, sales fell below market expectations, while net profit and loss turned into a surplus.

Sandwich giant Subway agreed to sell over 1 trillion yen
The US sandwich chain Subway announced on the 24th that it had made a final agreement to sell its company to the US investment fund Roark Capital. Details such as the transaction amount have not been clarified, but according to the US media, there is a possibility that it will reach 9.6 billion dollars (about 1.39 trillion yen).

Sony acquires high-end headphone manufacturer, aiming to improve PS sound experience
$Sony Group (6758.JP)$Sony Interactive Entertainment, which is under its umbrella, will acquire Audiophile equipment manufacturer Audiogy in order to improve the sound experience of home game console “PlayStation (PS)” products.

T-Mobile US to cut approximately 5,000 people — close to 7% of total number of employees
Of a US mobile phone company $T-Mobile US (TMUS.US)$The plan is to reduce the number of employees by just under 7% worldwide. According to the notification to the authorities on the 24th, the number of personnel to be reduced has risen to about 5,000, and mainly corporate, back office, and some technical positions are targeted.