US stock futures climbed higher on Thursday as an upbeat earnings report from Nvidia fueled bullish sentiment. Nasdaq 100 and S&P 500 futures jumped 0.9% and 0.5%, respectively, while Dow futures were flat. In extended trading, Nvidia gained about 7% after the tech giant posted better-than-expected earnings and revenue for the second quarter and forecasted sales to jump 170% in the current quarter on the back of strong demand for artificial intelligence chips. In regular trading on Wednesday, the Dow rose 0.54%, the S&P 500 gained 1.1% and the Nasdaq Composite advanced 1.59%. Ten out of the 11 S&P sectors finished higher, led to the upside by technology and communication services, while the energy sector was the sole decliner. Those moves came as weak PMI data in the US and Europe bolstered bets that major central banks would halt their interest rate hikes to avert a recession. Investors now look ahead to the Jackson Hole meeting for further rates guidance. 

Summary for 24.08.2023 

  • On Wednesday, in the U.S., all three major indexes gained ground, with the Dow Jones Industrial Average closing 0.5% up. 
  • Equities rallied and bond yields retreated as flash PMI data for August signalled weaker economic activity in the U.S., euro area and UK, fuelling market expectations that central banks may not have to raise rates again 
  • The S&P Global US Composite PMI declined to 50.4 in August 2023, falling short of market expectations of 52.0, according to a preliminary estimate. 
  • The two-year yield, which rises with traders’ expectations of higher Fed fund rates, touched 4.971% compared with a U.S. close of 4.952%. 
  • This week’s Jackson Hole Symposium remains firmly in focus for market 
  • Sales of new single-family houses in the United States climbed 4.4 percent to a seasonally adjusted annualized rate of 714 thousand in July 2023, reaching the highest level since February 2022 
  • Nvidia reported $10.32 billion in data centre revenue, which was up 171% year over year. 
  • Nike’s stock fell for the 10th straight day as a slowdown in the footwear sector and China’s uneven recovery weigh on its stock. 
  • Tesla lowered the production target of its German plant to 4,350 a week in July and August after hitting 5,000 a week in March, and plans to reduce it further 
  • Asian equity markets rose on Thursday, tracking gains on Wall Street overnight as Treasury yields fell sharply after weak US PMI data raised hopes the Fed would end its tightening campaign to avert a recession.   
  • Despite changing linkages between China and the global economy as Beijing tries to transition to a consumption-led growth model and trade tensions remain elevated with the West, China is still the world’s manufacturer. 
  • Hong Kong’s Hang Seng index also rose 0.8%, while mainland Chinese markets were also up, with the CSI 300 gaining 0.43%. 
  • Currency: the dollar index dipped 0.03% in early Asia trade after hitting a two-month high of 103.4 against a basket of major currencies. 
  • U.S. crude dipped 0.3% to $78.65 a barrel. Brent crude fell to $83.01 per barrel. 
  • Gold was slightly higher. Spot gold was traded at $1,918.89 per ounce.