Overview
The U.S. stock market ended with mixed results, pressured by weakness in tech stocks. However, late-session buying helped reduce earlier losses. Investors are transitioning from high valuation tech stocks, including semiconductors, to energy and defensive sectors. Notably, AMD and Nvidia each fell by 1%, with the Nasdaq dropping 2% intraday before closing down by 0.6%. Howard Marks from Oaktree Capital stated that the market is in the early stages of a downturn, with a full correction yet to occur.
| Nasdaq Composite | S&P 500 |
| Dow Jones Industrial Average | 1 South Korean won equals |
Major News Story
The government is emphasizing profit-sharing agreements with AMD and MVID, while considering acquisitions in key semiconductor companies like Intel. Additionally, President Trump is pressuring Fed Chair Powell for rate cuts and called for the resignation of Fed Board member Lisa Cook, a potential disruption to the Fed's political balance. Retail earnings were mixed; Target's poor performance led to a 6% stock drop, whereas Lowe's saw slight gains due to strong results. Walmart's upcoming earnings are highly anticipated as an indicator of the impact of Trump's trade policies.
Tomorrow's Economic Indicators
| Time | Event |
|---|---|
| 20:30 | U.S. Weekly Jobless Claims |
| 20:30 | U.S. August Philadelphia Manufacturing Index |
| 20:45 | U.S. August S&P Global Manufacturing PMI |
| 22:45 | U.S. August S&P Global Services PMI |
| 22:45 | U.S. August S&P Global Composite PMI |
| 23:00 | U.S. Leading Economic Indicators |
| 23:00 | U.S. Existing Home Sales |
General Opinion
Investors are shifting funds from tech stocks to energy and defensive sectors amid valuation concerns and AI profitability challenges. Tomorrow's economic indicators and Chair Powell's address in Jackson Hole are pivotal in determining the market's direction. Some analysts see profit-taking as a natural adjustment, while others await Jackson Hole for policy hints. Overall, caution prevails as investors prioritize profits amid valuation concerns.
