On the evening of the 8th, after three consecutive weeks of gains in the S & P 500, investors turned their attention to this week's important CPI inflation report to judge the possible path for the Fed to raise interest rates. The market is also assessing the impact of the historic climate bill passed by the U.S. Senate on related industries.
Us stocks opened higher on Monday, with the S & P 500 up 0.99%, the Nasdaq up 1.47% and the Dow up 0.92% as of press time.
Both the S & P 500 and the Nasdaq recorded weekly gains last week. The unexpectedly strong non-farm payrolls data for July eased fears of a recession. The strong labour market also suggests that the US economy can withstand more interest rate hikes by the Federal Reserve.
In addition, the better-than-expected second-quarter earnings season also helped U. S. stocks rebound last week. Investors are hoping that corporate profitability will offset inflationary pressures.
But strategists at Morgan Stanley and Goldman Sachs Group agree that US corporate profit margins will shrink next year due to continuing cost pressures, which may quickly thwart sentiment in US stocks. "the highlight of the US equity rally is over," said Michael J.Wilson, an analyst at Morgan Stanley. "
On Monday morning, U. S. stocks related to clean energy attracted a lot of attention. On Sunday afternoon US Eastern time, the US Senate passed the inflation reduction Act (Inflation Reduction Act), which involves more than $700 billion, of which $380 billion will be invested in climate change and energy security.
Compared with the trillion dollars envisioned by US President Joe Biden when he took office, the specific size of the bill has been greatly reduced, but it will undoubtedly remain a historic climate bill. According to the research institute, the passage and implementation of the bill could help the United States reduce greenhouse gas emissions by 40% by 2030, which is close to the 50% reduction promised by Biden.
What has attracted much attention from US stock investors is the second part of the bill, which deals with clean energy manufacturing, including solar panels, wind turbines, batteries, electric vehicles, hydrogen production and key mineral resources.
Consumer price index (CPI) data, due to be released on Wednesday, will help investors figure out more clearly the next course of action at the Fed's September policy meeting. Traders now expect the Fed to raise interest rates by 0.75 percentage points next month. If the forecast is correct, it will be the third time in a row that the Fed has raised interest rates by 75 basis points.
Jeffrey Roach, chief economist at LPL Financial, said: "the strong growth in the job market last month should further support the view that the United States is not currently in recession. The sharp increase in non-farm payrolls data is surprising and could lead people to believe that the US economy needs the Fed to raise interest rates by another 75 basis points at its next meeting. Now all eyes are on inflation. "
Analysts believe that sectors such as high-growth stocks and technology stocks will still be under pressure for some time before seeing a drop in the federal funds rate.
The CPI data report will be released on Wednesday. The market now expects nominal US CPI to fall to 8.7 per cent in July from a 40-year high of 9.1 per cent in June. The market also believes that the series may show a slight decline in overall economic growth, but core inflation is likely to accelerate further.
Focus stocks
Most star technology stocks are up.Tesla, Inc. is up nearly 5%, Apple Inc is up 0.8%, Amazon.Com Inc and Alphabet Inc-CL C are up more than 1%.
Solar energy stocks rose collectively.Sunnova Energy and first Solar Energy rose by 9% and 8% respectively. The US Senate has passed the largest climate bill in history, worth $369 billion, focusing on clean energy manufacturing, including solar panels, wind turbines, batteries, electric vehicles, hydrogen production and key minerals.
$LUCKN COFFEE DRC (LKNCY.US) $The company's Q2 net revenue rose by more than 9% to 3.3 billion yuan, while Non-GAAP 's net profit was 267.5 million yuan, compared with 92 million yuan in the same period last year.
$3B (BBBY.US) $Up nearly 45% 3B home has become a new hot topic for WSB retail investors after the game post.
$AMC cinema line (AMC.US) $Up nearly 19%. Investors bought 703015 AMC call options on Friday, a sharp increase of 80 per cent.
Global Blood Therapy (GBT.US) $It's up more than 4%. Pfizer Inc bought the biopharmaceutical company Global Blood Therapy for $68.50 a share, with a total value of $5.4 billion.
$NVIDIA Corp (NVDA.US) $Down more than 4%, the company released preliminary figures for the second quarter of fiscal 2023, with revenue of $6.7 billion and a market forecast of $8.1 billion.
Popular Chinese stocks vary. Pinduoduo and JD.com fell by more than 1%, NIO Inc. by more than 2%, and XPeng Inc. by more than 1%.
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