Overview
The U.S. stock market showed mixed results today, with technology stocks initially rallying due to bargain buying but later seeing gains fade as caution spread. This caution stemmed from impending major economic indicators and heightened concerns over the Federal Reserve's possible interest rate cuts in October.
| Nasdaq Composite | S&P 500 |
| Dow Jones Industrial Average | 1 South Korean won equals |
Major News
Wall Street analysts advised investors to adopt a bargain-buying strategy. Dennis DeBusschere of 22V Research recommended buying fundamentally strong stocks during corrections. Meanwhile, Wedbush's Dan Ives emphasized that this downturn is not the time to sell and described the current pullback as a last great buying opportunity before a major rally expected through the year-end. Despite initial market rebounds tied to corporate earnings, interest rate cut expectations, and projections of explosive AI industry growth, recent trends show these drivers weakening, with noticeable softening in AI investments and elevated concerns over high-tech stock valuations. Moreover, Federal Reserve officials have expressed skepticism about interest rate cuts in October, with the swap market lowering the odds to below 50%. This has led to internal debates within the Federal Reserve posing risks beyond mere policy discussions. Analysts also pointed out that despite most big tech companies meeting or exceeding earnings expectations, the uncertainty over interest rates is overshadowing positive results.
Tomorrow's Economic Indicators
The market's attention is now focused on Wednesday's earnings from MVID, which will be critical for the market and AR-related stocks, with volatility priced at historically high levels. In addition, financial results from major retailers such as Walmart are due, providing insights into U.S. consumer spending.
| Time | Event |
| 11:00 PM | Fed's Williams Speech |
| 11:30 PM | Fed's Jefferson and Kashkari Speeches |
General Opinion
While there is potential for a market rebound, the sentiment remains cautious, with recent bargain buyers facing losses. Experts from Morgan Stanley noted that this recent correction is far from a full tech stock deflation but could signal a reevaluation of tech stock expectations.
