Overview
The U.S. stock market faced headwinds as previously leading AI stocks paused for breath and Powell's warnings on stock overvaluation added to investor caution. NVIDIA fell about 1% due to concerns about the AI investment structure, continuing its previous losses. Oracle also declined by 2% despite announcing a $180 billion investment-grade bond issuance.
| Nasdaq Composite | S&P 500 |
| Dow Jones Industrial Average | 1 South Korean won equals |
A Major News Story
- NVIDIA and Oracle shares fell by 1% and 2% respectively.
- Micron shares dropped despite releasing an optimistic outlook.
- Alibaba initially saw gains on AI investment expansion news but lost most of it due to valuation pressures and rising U.S. Treasury yields.
- Uncertainty regarding interest rate cut prospects and signs of labor market cooling dampened investor sentiment.
- Risk of government shutdown also acted as a burden.
Tomorrow's Economic Indicators
| Time (ET) | Release |
|---|---|
| 8:30 PM | US August Trade Balance |
| 8:30 PM | US August Wholesale Inventories |
| 8:30 PM | US Q2 Real GDP Growth Rate |
| 8:30 PM | US Q2 Core PCE Price Index |
| 8:30 PM | US August Durable Goods Orders |
| 8:30 PM | US Weekly Initial Jobless Claims |
| 11:00 PM | US August Existing Home Sales |
| 8:30 PM | US Natural Gas Inventory |
| 2:00 AM | US 7-year Treasury Auction |
General Opinion
Experts are seeing both short-term correction potential and long-term positive factors, with a bubble concern particularly in tech stocks becoming prominent. Friday's inflation data is expected to significantly influence the market's direction.
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