US market outlook: Will Apple and Nvidia be replaced by the new AI champion? The Nasdaq Index starts 134 points higher.
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Here are tonight's market rumors on NY stocks.![]()
Market overview
The US market has started, with the Dow Jones Industrial Average, which consists of high-quality stocks, opening at 41,366.16, up 31.11 dollars. The Nasdaq Composite Index, which has a high proportion of technology stocks, started at 17,650.49, up 134.06 points. The S&P 500 Index, which consists of 500 large-cap stocks, opened at 5,612.74, up 20.78 points.
The US market has started, with the Dow Jones Industrial Average, which consists of high-quality stocks, opening at 41,366.16, up 31.11 dollars. The Nasdaq Composite Index, which has a high proportion of technology stocks, started at 17,650.49, up 134.06 points. The S&P 500 Index, which consists of 500 large-cap stocks, opened at 5,612.74, up 20.78 points.
Top news
[Indicator Flash Report] The US PCE core price index, which is of interest to the Federal Reserve Bank, rose by 2.6% year-on-year in July, slightly lower than market expectations of a 2.7% increase.
●Focus on the FRBU.S. PCE core price index,Rises by 2.60% year-on-year in JulyExpected to rise by 2.70%, with the previous period rising by 2.60%.
●Focus on the FRBU.S. PCE core price index,Rises by 2.60% year-on-year in JulyExpected to rise by 2.70%, with the previous period rising by 2.60%.
With a gradual decline in inflation rate, there is increasing speculation of a 25bp reduction in the FRB in September.
If it is confirmed in substance that the Federal Reserve Board (FRB) is prepared to cut interest rates in September at the Jackson Hole meeting, some analysts said that Friday's inflation data strengthened expectations for a 25bp rate cut rather than 50 basis points.
As the inflation data for July turned out to be almost as expected, yields remained almost flat. The market is also betting on shrinking the rate cut next month.
Traders have been expecting a significant rate cut in November or December, but if prices gradually cool down without a larger than expected drop, the market may reconsider those expectations.
If it is confirmed in substance that the Federal Reserve Board (FRB) is prepared to cut interest rates in September at the Jackson Hole meeting, some analysts said that Friday's inflation data strengthened expectations for a 25bp rate cut rather than 50 basis points.
As the inflation data for July turned out to be almost as expected, yields remained almost flat. The market is also betting on shrinking the rate cut next month.
Traders have been expecting a significant rate cut in November or December, but if prices gradually cool down without a larger than expected drop, the market may reconsider those expectations.
Rate cut expectations rise, US bond rally
Due to expectations of monetary easing, US bonds have recorded the longest monthly rally in the past 3 years.
As of Thursday, the US bond yield for August was 1.5%.
According to the Bloomberg US Bond Total Return Index, it marks the 4th consecutive month of increase since July 2021, the longest streak.
Due to expectations of monetary easing, US bonds have recorded the longest monthly rally in the past 3 years.
As of Thursday, the US bond yield for August was 1.5%.
According to the Bloomberg US Bond Total Return Index, it marks the 4th consecutive month of increase since July 2021, the longest streak.
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'US rate cut trade' begins! With the decision of the Federal Reserve, the biotech stock counteroffensive begins!?
Second installment of the "US interest rate cut trade"! Defensive nature + AI boom, are there opportunities for public utility stocks as well?
Low interest rate environment promotes consumption and increases consumer disposable income. This means stable or growing demand for companies providing essential consumer goods such as food, beverages, and other basic necessities.
Stock market recovery in August
● While August may have started with a disappointing decline in stock prices, the strong recovery that followed has brought global stocks close to a four-month high.
● In the USA, $S&P 500 Index (.SPX.US)$ has only been negative once since the end of last year and has recorded a 17% increase since the beginning of 2024.
● While August may have started with a disappointing decline in stock prices, the strong recovery that followed has brought global stocks close to a four-month high.
● In the USA, $S&P 500 Index (.SPX.US)$ has only been negative once since the end of last year and has recorded a 17% increase since the beginning of 2024.
The reason Apple is emerging as the leading AI stock instead of Nvidia = city.
- City believes that the AI industry is transitioning from the infrastructure stage to the final consumer stage. $Apple (AAPL.US)$ City predicts that Apple will achieve further success in the AI device era through Apple Intelligence.
- City believes that the AI industry is transitioning from the infrastructure stage to the final consumer stage. $Apple (AAPL.US)$ City predicts that Apple will achieve further success in the AI device era through Apple Intelligence.
- Currently, Apple is planning to announce the new iPhone 16, which will be officially announced at the product launch event "It's Glowtime" on September 9th. City analysts expect that the upgrade of the hardware for the iPhone 16 to better support AI features will be a major highlight of the announcement.
- According to City's perspective, the AI mobile phone market holds great potential. The company's analysts cite data from IDC in their research report, stating that the annual average compound growth rate of AI mobile phones in the next five years will reach 78.4%, far exceeding the market average.
[Breaking News] Intel jumps more than 6% after hours, possible sale of Foundry business = BG
$Intel (INTC.US)$ is an investment bank. $Morgan Stanley (MS.US)$ And $Goldman Sachs (GS.US)$ Bloomberg has reported that they are exploring ways to overcome the difficult times with vroom.
$Intel (INTC.US)$ is an investment bank. $Morgan Stanley (MS.US)$ And $Goldman Sachs (GS.US)$ Bloomberg has reported that they are exploring ways to overcome the difficult times with vroom.
Optimism in Europe
European stocks have been on a 4-week streak and have hit record highs.
On Friday, positive inflation data has been reported, with the eurozone's inflation rate falling to its lowest level since mid-2021.
These numbers follow similar slowdowns in France, Spain, and Germany, pushing the European Central Bank (ECB) to further lower interest rates.
European stocks have been on a 4-week streak and have hit record highs.
On Friday, positive inflation data has been reported, with the eurozone's inflation rate falling to its lowest level since mid-2021.
These numbers follow similar slowdowns in France, Spain, and Germany, pushing the European Central Bank (ECB) to further lower interest rates.
- moomoo News Zeber
Source: moomoo, Bloomberg, Dow Jones
This article utilizes automatic translation in certain parts.
Source: moomoo, Bloomberg, Dow Jones
This article utilizes automatic translation in certain parts.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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182956972 : So, who is the new king of AI replacing Apple and Nvidia? Is it Apple Intelligence? This article is kind of confusing, isn't it?
へこきよ : I also thought so, but as I read it again and again, I understood that it means 'changing from Apple to Nvidia'.