FX168 Financial News (North America) #美股收评 #周一 (September 9), the US stock market rebounded, ending four consecutive days of decline, and inflation once again became the focus of investors' attention.
The Dow Jones Industrial Average surged 484.18 points, or 1.2%, to close at 40829.59 points; the S&P 500 rose 1.15% to close at 5471.05 points; and the Nasdaq Composite rose 1.16% to close at 16884.60 points.
(Source: FX168)
(Source: FX168)
Market focus
Currently, the market focus is on the latest consumer inflation data to be released on Wednesday. This data will provide clues to interest rate trends. The producer inflation report will also be released on Thursday. This is the last inflation data before the Federal Reserve's September 18 policy decision.
If the inflation report shows an unexpected spike in inflation, the Federal Reserve could be in the worst position. Lowering interest rates may help boost the economy, but it may also increase inflation. Investors are awaiting two key inflation reports.
Market views
Tom Essay of Sevens Report said, “What we saw was mainly technical bargain buying. Economic growth is certainly losing momentum, but a soft landing is still more likely than a hard landing. The focus will turn back to inflation this week.”
Piper Sandler's Craig Johnson said, “Stock investors are walking a tightrope between cheers for the Fed's interest rate cut, concerns about the recession, and political uncertainty. Looking at popular average indices from the perspective of technical analysis, we can see that last week's weakness was only a correction in the context of a long-term upward trend.”
A capital market strategist at the Royal Bank of Canada said that due to risks such as seasonality, sentiment, and presidential elections, the US stock market may continue to fluctuate and fall further in the short term.
The team, led by Chris Montagu, said the large number of liquidations of long positions in short positions in the S&P 500 index indicates a shift in risk appetite to be more “directly bearish.” The strategist pointed out that the reduction in positions in this indicator means that hedge funds liquidated long and short positions, reducing total exposure to half of the peak in mid-July.
Mark Haefele of UBS Global Wealth Management believes that despite a round of weakness in the stock market, the fundamentals of the stock market have remained positive. He said, “We expect profits from S&P 500 companies to increase 11% this year and 8% by 2025. Historically, without a recession in the US economy, the index rose an average of 17% in the 12 months after the Federal Reserve cut interest rates for the first time.”
Apple press conference
Apple unveiled the iPhone 16 smartphone at its annual product launch in Cupertino, California.
The tech giant also announced updates to its entire Apple Watch line, as well as AirPods Pro 2, which includes new hearing protection features.
Apple also solemnly unveiled the latest version of the iPhone 16. CEO Tim Cook said the phone was designed to “fundamentally” use artificial intelligence.
Apple's stock price fluctuated. At one point, it fell 1.8%, but in the end it rebounded slightly to close.
The bond market
The trend of US Treasury bonds is moderate, and traders reduced the possibility that the Federal Reserve will cut interest rates by half a percentage point at the September meeting to 20% from 50% last week.
US Treasury yields also rose slightly in the morning, then curtailed gains in the bond market. Last week, the much-anticipated US job market update showed weak performance, which heightened concerns about the US economic slowdown and led to sharp market fluctuations.
The 10-year US Treasury yield slipped slightly to 3.71% from 3.72% late Friday.
Individual stocks in focus
Nvidia is up 3.54%, and the AI darling is down 14% last week. The increase fueled the tech stock index, with Tesla rising 2.63%.
Boeing shares rose 3.26% after the company and its largest union reached an interim agreement on a new contract that, if approved, would avoid a strike threatening aircraft production this weekend. Boeing said 33,000 workers represented by the International Association of Mechanics and Aeronautical Workers will receive a 25% salary increase over the four-year contract period.
A troubled broker-dealer and investment firm B. Riley Financial Inc. rose 10.22%, and the company outlined initial plans to sell assets and raise capital to address debt burdens and support balance sheets.
Alphabet Inc. fell 1.57%. According to reports, Google, a subsidiary of the company, has once again returned to court to face charges from the US Department of Justice for manipulating the display advertising market.
Palantir Technologies rose 14.08%. After S&P Dow Jones Indices announced that it would include Palantir Technologies in the S&P 500 index, Palantir Technologies' stock price rose on the first trading day. Also included in the index, Dell Technology's stock price rose 3.83%, while Erie Indemnity's stock price fell 0.61%.
Discount retailer Big Lots Inc. has filed for bankruptcy protection and plans to sell the company's assets and ongoing business under court supervision.