Live Markets: Wall Street de-risks ahead of Nvidia earnings

VAT AG

27/08/2024 15:12

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      All three U.S. stock indexes red
    

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      Cons disc down most among S&P sectors; healthcare leads gainers
    

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      STOXX 600 up ~0.1%
    

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      Dollar, gold, crude, bitcoin all lower
    

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      10-Year U.S. Treasury yield edges up to ~3.86%
    

  
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    WALL STREET DE-RISKS AHEAD OF NVIDIA EARNINGS
U.S. stocks inched lower on what is, unofficially, the last Tuesday of the summer.
    All three major U.S. stock indexes were modestly red, with the tech-laded Nasdaq suffering
the worst of it.
    As in the previous session, investors appear to be de-risking ahead of Nvidia  NVDA.O 
earnings, Friday's PCE report and the long Labor Day weekend.
    Should Nvidia, the darling of the artificial intelligence craze, miss expectations or
provide cautious guidance, any disappointment is bound to be contagious among the megacap growth
stocks that have benefited most from the AI rally.
    The "magnificent seven" isn't so magnificent in early going; all of them are red except for
who-else-but Nvidia.
    Economically sensitive small caps  .RUT  and transports  .DJT  are clear underperformers in
early trading.
    Part of the softness in the major indexes could be attributable to the market simply letting
off some steam after a steady rally, which was at first a bounce-back from a knee-jerk sell-off,
which gathered momentum on rising rate cut hopes.
    At last glance, financial markets are baking in a 71.5% likelihood that the Federal Reserve
will issue a 25 basis point rate cut at its upcoming September policy meeting. The possibility
of a larger, 50 bp rate cut is currently 28.5%, according to CME's FedWatch tool.
    Here's where things stood at 10:00 EDT:
    (Stephen Culp)
    *****
    
    FOR TUESDAY'S OTHER LIVE MARKETS POSTS 
    GLIMMER OF HOPE FOR LIMPING GERMAN ECONOMY CLICK HERE
    AUTO PARTS SUPPLIERS POSE INVENTORY RISK FOR EU SEMIS CLICK HERE
    GERMAN AUTOS - POP GOES THE DIESEL CLICK HERE
    MINERS AND AIRLINES LIFT STOXX CLICK HERE  
    LACKLUSTRE START IN STORE FOR EUROPE CLICK HERE
    RATE CUT RELIEF DOUSED BY GEOPOLITICS CLICK HERE

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
PCE, the shorter term view    https://reut.rs/3WXgbkd
Opening snapshot    https://reut.rs/3YWnBH2
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