Outlook for the US market: Will Nvidia fall further? The Dow starts down 64 points. Bitcoin is also falling.
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This is the forecast for tonight's New York stock market.![]()
Market Overview
The US market started with the Dow Jones Industrial Average, which consists of high-quality stocks, falling 64.87 dollars to 40,872.06 dollars, and the Nasdaq Composite Index, which has a high proportion of technology stocks, falling 120.59 points to 17,015.71. The S&P 500, which consists of 500 large-cap stocks, fell 22.25 points to 5,506.68.
The US market started with the Dow Jones Industrial Average, which consists of high-quality stocks, falling 64.87 dollars to 40,872.06 dollars, and the Nasdaq Composite Index, which has a high proportion of technology stocks, falling 120.59 points to 17,015.71. The S&P 500, which consists of 500 large-cap stocks, fell 22.25 points to 5,506.68.
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Market movements
Due to concerns about the US economy and the withdrawal of major high-tech companies, global risk assets continued to escape on Wednesday, as the stock market suffered its largest decline since the crash on August 5th.
European stocks also fell following the decline in Asian stock indices, with technology stocks suffering the biggest losses.
NASDAQ futures saw the biggest drop.
Due to concerns about the US economy and the withdrawal of major high-tech companies, global risk assets continued to escape on Wednesday, as the stock market suffered its largest decline since the crash on August 5th.
European stocks also fell following the decline in Asian stock indices, with technology stocks suffering the biggest losses.
NASDAQ futures saw the biggest drop.
Summon to NVIDIA
- $NVIDIA (NVDA.US)$
Authorities are concerned that NVIDIA is making it difficult for other suppliers to switch and imposing penalties on buyers who do not exclusively use their artificial intelligence chips.
While the Department of Justice has previously sent inquiries to companies, they are currently sending legally binding requests, obligating them to provide information.
Related articles:
Nvidia has experienced a sudden 10% drop! Is this a major adjustment or a temporary one? Let's check the support level.
- $NVIDIA (NVDA.US)$
Authorities are concerned that NVIDIA is making it difficult for other suppliers to switch and imposing penalties on buyers who do not exclusively use their artificial intelligence chips.
While the Department of Justice has previously sent inquiries to companies, they are currently sending legally binding requests, obligating them to provide information.
Related articles:
Nvidia has experienced a sudden 10% drop! Is this a major adjustment or a temporary one? Let's check the support level.
Will gold soon reach $2,700?
- Goldman Sachs analyst Stephen Quinn stated in a report titled 'Go for Gold' this week that the commodity price of gold is most likely to rise and maintained a target price of $2,700 per ounce by early 2025.
- Based on Tuesday's spot gold price, Goldman Sachs believes that the price of gold will have a rise of more than 8% by the beginning of next year.
- This forecast is based on three reasons: the US debt crisis, Federal Reserve rate cuts, and the value of hedging.
- Goldman Sachs analyst Stephen Quinn stated in a report titled 'Go for Gold' this week that the commodity price of gold is most likely to rise and maintained a target price of $2,700 per ounce by early 2025.
- Based on Tuesday's spot gold price, Goldman Sachs believes that the price of gold will have a rise of more than 8% by the beginning of next year.
- This forecast is based on three reasons: the US debt crisis, Federal Reserve rate cuts, and the value of hedging.
US employment trends
- The US employment statistics to be released on Wednesday are expected to show further cooling in the labor market following yesterday's announcement of a five-month contraction in manufacturing activity.
- Employment statistics will provide further clues as to whether the US economy is on the brink of a recession and how the Federal Reserve will proceed with its monetary policy.
- The US employment statistics to be released on Wednesday are expected to show further cooling in the labor market following yesterday's announcement of a five-month contraction in manufacturing activity.
- Employment statistics will provide further clues as to whether the US economy is on the brink of a recession and how the Federal Reserve will proceed with its monetary policy.
Bets of the Federal Reserve (FRB)
Based on this data, traders have become more confident in betting on a significant interest rate cut by the Federal Reserve this month, leading to a 2-day rally in government bonds. According to swap trading, the probability of a 50bp rate cut has increased from 20% last week to about 30%.
On the other hand, the dollar's upward trend has stopped after 5 consecutive increases, the yen has strengthened further, and crude oil prices have plummeted to the lowest level this year before falling further.
Based on this data, traders have become more confident in betting on a significant interest rate cut by the Federal Reserve this month, leading to a 2-day rally in government bonds. According to swap trading, the probability of a 50bp rate cut has increased from 20% last week to about 30%.
On the other hand, the dollar's upward trend has stopped after 5 consecutive increases, the yen has strengthened further, and crude oil prices have plummeted to the lowest level this year before falling further.
Is the rise in US Treasuries too fast?
The US ISM Manufacturing Purchasing Managers' Index fell below expectations in August, raising concerns of an economic downturn, leading to a surge in US Treasury yields due to expectations of an interest rate cut by traders.
For bond bulls, the key will be the non-farm payrolls data, which will be announced on Friday, as a substantial interest rate cut by the Federal Reserve is likely to retreat if the labor market remains resilient.
At this point, economists expect that the US non-farm payrolls for August will increase from 0.114 million people in the previous month to 0.165 million people, and the unemployment rate will decrease by 0.1 percentage points from 4.3% to 4.2%.
The US ISM Manufacturing Purchasing Managers' Index fell below expectations in August, raising concerns of an economic downturn, leading to a surge in US Treasury yields due to expectations of an interest rate cut by traders.
For bond bulls, the key will be the non-farm payrolls data, which will be announced on Friday, as a substantial interest rate cut by the Federal Reserve is likely to retreat if the labor market remains resilient.
At this point, economists expect that the US non-farm payrolls for August will increase from 0.114 million people in the previous month to 0.165 million people, and the unemployment rate will decrease by 0.1 percentage points from 4.3% to 4.2%.
- moomoo News Zeber
This article uses auto-translation partially.
This article uses auto-translation partially.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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