2024. 7. 13. 09:06ㆍU.S. Economic Stock Market Outlook
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#Price Target Down #NVIDIA #Report Price #RateCutting
NASDAQ 18,647(+1.18%)
U.S. bond 10-year interest rate of 4.286%, -0.28%
USD index 105.00p (-0.12) NDF KRW 1,384 (KRW-1)
The S&P 500 and Nasdaq Composite both hit record highs. Powell's dovish comments were instrumental. Powell spoke significantly about prices during his semi-annual monetary policy report before the House Financial Services Committee. He said there was no need to wait for inflation to fully reach 2%, adding that inflation will move downward and probably below 2%, which is not what we would like it to be, and that monetary policy could be eased depending on the situation even before inflation falls to its 2% target. He is laying the groundwork for a rate cut. The Senate has made a point on employment, but unemployment is also rising, which is giving more weight to the rate cut.
Major technology stocks closed higher. Apple and Tesla, as well as generative AI companies such as Nvidia, AMD, TSMC and Microsoft, were also strong. TSMC reported better-than-expected second-quarter earnings and AMD posted a nearly 4% rise on news of its acquisition of Europe's largest private artificial intelligence lab, "SiloAI." Apple topped the market again, hitting a new high on news of its target share price rise. The reason Nasdaq is forced to keep hitting new highs is because of the rise of big tech companies.
Instead of saying that he would be patient about cutting rates, Powell's remark that he could cut rates faster than he targeted is quite unusual. He said he would rely on the data for everything, but this time, his statement that he might respond "preemptively" means that the rate cut is really just around the corner. The possibility of a rate cut in September FED WATCH is up to 73%. It seems time to prepare for a strategy to prepare for a rate cut.