US Market Outlook: The downward momentum eased, Tesla and NVIDIA made small moves, and the NASDAQ index started 10 points higher

Stock prices plummeted
● The global stock depreciation that began yesterday on Wall Street accelerated further on Thursday.
● Stoxx 600 fell more than 1%, French stocks were on the verge of a 10% adjustment, FTSE 100 hit a 3-month low, and stock index futures were on Wednesday $S&P 500 Index(.SPX.US)$ After falling 2.3%, there was little change.

Escaping hedge assets
● The collapse in stock prices evoked flight to hedge assets, and raised calls for early interest rate cuts by the US Federal Reserve (Fed) and other central banks. The yield on 2-year government bonds fell to a low level since early February, and British bonds and German bonds followed suit.
● Meanwhile, the yen rose to a high for the first time in more than 2 months against the dollar. It reflects the rapid increase in views that there is a high possibility that interest rate differences between Japan and the US will shrink.
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Next steps
● The next important phase for the market will be the gross domestic product (GDP) and number of new unemployment insurance claims announced by the US on Thursday.
● Tomorrow, the inflation index PCE, which the Fed likes to use, will be announced.
● Next week is full of central bank meetings, and financial markets are trying to determine the extent of mitigation.
● Currently, in the market, the United States will cut interest rates by 30 basis points by September, and the possibility that the Bank of Japan will raise interest rates next week is 50%.
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The US core PCE, which exceeds market expectations with a 2.8% increase from the previous fiscal year, also exceeds expectations in the preliminary US GDP value for the fiscal year ending 4-6
The U.S. Department of Commerce will announcePreliminary US real gross domestic product (GDP) value for the April-6 fiscal yearIs2.8% year-on-year increase、It exceeded market expectations for a 2% increase.Preliminary US core PCE figures for the April-6 fiscal yearIsThe annual rate increase of 2.9% from the previous fiscal year was higher than the expected 2.7% increaseThere was a slowdown from the previous 3.7%.

Tesla is expensive by AI, which greatly exceeds reasonable evaluations = UBS analysts
● UBS analysts Joseph Spak, Patrick Hummel, and Alejandro Nuno reported on 7/24 $Tesla(TSLA.US)$ The “sales” rating was announced again.
● Musk said Tuesday that Tesla's value is mainly in autonomous driving technology. Meanwhile, UBS pointed out that the problem is that the timing and probability of success are unclear.