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On Friday, the major indices in the U.S. finished lower, with technology shares leading the decline as investors digested hawkish comments from Federal Reserve Chair Kevin Warsh at Jackson Hole.
The S&P 500 dipped 19.23 points (-0.25%) to 7,711.76.
The Nasdaq 100 dropped 208.133 points (-0.70%) to 29,433.428.
The Dow slipped 9.45 points (-0.02%) to 53,559.99.
On the sector front, the outperforming sectors were Communication Services (XLC), Consumer Discretionary (XLY), and Energy (XLE), while Technology (XLK), Utilities (XLU), and Industrials (XLI) underperformed the most.
On the U.S. economic data front, the Chicago PMI fell sharply to 47.1 in August from 57.6 previously, well below expectations of 57, signaling a renewed contraction in business activity in the Chicago region.
Federal Reserve Chair Kevin Warsh also struck a hawkish tone at Jackson Hole, saying financial conditions do not appear restrictive and that recent improvement in inflation has not yet convinced him price pressures are moving sustainably back toward the Fed’s 2% target.
U.S. Equity News:
PayPal (PYPL), the digital payments company, dropped 12.71% after a report that Advent International and Stripe had abandoned takeover efforts.
Marvell Technology (MRVL), a semiconductor company focused on data infrastructure, fell 10.28% as investors were disappointed by the company’s longer-term revenue outlook despite a major AI chip deal with Google.
Gap (GAP), an apparel retailer, gained 12.94% after announcing a leadership change at its Old Navy brand and raising its earnings guidance for the current fiscal year.
Rubrik (RBRK), a cybersecurity and AI operations company, tanked 13.05% after adjusted gross margin missed expectations.
Autodesk (ADSK), a provider of computer-aided design software, slid 3.67% as current-quarter earnings guidance disappointed investors.
Nvidia (NVDA), a leading designer of graphics processors and AI chips, fell 4.58%, giving back part of the previous session’s strong post-earnings gain.
Volatility & Commodities Snapshot:
The VIX index slipped 0.08 point (-0.55%) to 14.43.
The U.S. 10-year Treasury yield rose about 5.2 basis points to 4.728%.
In the commodities market, precious metals sold off as Treasury yields and the U.S. dollar strengthened.
Gold dropped US$145.51 (-3.16%) to US$4,455.49.
Silver fell US$2.96 (-4.28%) to US$66.29.
WTI crude oil slipped US$0.10 (-0.12%) to US$83.43.
Europe Market Overview:
At the European close, the major indices in the region finished higher.
Germany's DAX gained 202 points (+0.77%) to 26,569.
France's CAC 40 jumped 81 points (+0.98%) to 8,401.
The U.K.'s FTSE 100 gained 31 points (+0.29%) to 10,824.
On the European economic data front, French second-quarter GDP was revised to flat quarter over quarter from an initial estimate of 0.2% growth. Meanwhile, preliminary French inflation accelerated to 2.4% year over year in August from 2.1% previously, exceeding expectations of 2.2%.
Foreign Exchange & Crypto Wrap:
The dollar index gained 0.51 point (+0.51%) to 99.668 as the U.S. dollar strengthened following Warsh’s hawkish remarks.
EUR/USD dropped 71 pips (-0.61%) to 1.1580.
GBP/USD slipped 63 pips (-0.46%) to 1.3529.
USD/JPY gained 70 pips (+0.44%) to 160.09.
USD/CHF advanced 53 pips (+0.66%) to 0.8094.
AUD/USD fell 37 pips (-0.51%) to 0.7157.
USD/CAD advanced 53 pips (+0.38%) to 1.3907.
On the Canadian economic data front, second-quarter GDP grew 0.8% quarter over quarter, matching expectations and accelerating from a revised 0.1% previously. On an annualized basis, the economy expanded 3.3%, slightly below the 3.4% forecast but well above the revised 0.3% pace in the first quarter. June GDP also increased 0.3% month over month, topping expectations of 0.2%. The second-quarter rebound was supported by stronger exports and domestic demand.
Finally, in the cryptocurrency market, Bitcoin dropped US$2,714 (-3.39%) to US$77,376, while Ethereum fell US$80 (-3.21%) to US$2,427.
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