Quiver Quantitative - The momentum in the technology sector began to decelerate as bond yields escalated, spurred by an array of mixed economic indicators. As traders and investors keenly anticipate Federal Reserve Chair, Jerome Powell's forthcoming speech at the Jackson Hole conference, US Treasury two-year yields, typically reactive to upcoming Federal Reserve actions, lingered around the 5% mark. Meanwhile, the S&P 500 (SPY (NYSE:SPY)) showcased negligible change, but Nvidia Corp. stood out, touching a record high driven by a robust outlook. On the contrary, aviation giant Boeing (NYSE:BA) along with its primary supplier, Spirit AeroSystems (SPR), experienced a slump due to an issue disclosed about the 737 Max jet component.
Stuart Cole, the chief macro economist at Equiti Capital, London, spotlighted the resilience of AI technology demand, especially emphasizing Nvidia's (NVDA) performance amid market perturbations. He postulated that the equity market might experience softening tendencies in the foreseeable future. However, Cole asserted that stocks centered on AI, exemplified by Nvidia, alongside the broader tech stock segment, might emerge as equity market safe havens.
All eyes are now set on the imminent assembly of prominent central bankers at Jackson Hole. Jerome Powell's speech, scheduled for Friday, will be the highlight, providing insights that could significantly influence market movements. Adding to the anticipation, Former Fed Bank of St. Louis President, James Bullard, hinted that an accelerating US economy might usher in elevated rates, potentially signaling shifts in economic strategies.
Market movements showed some fluctuations: The S&P 500 and the Dow Jones Industrial Average saw a minor rise, while the Nasdaq 100 experienced a slight dip. Currency markets reflected a drop in the euro, the British pound, and the Japanese yen against the dollar. The cryptocurrency realm also presented a downward trend, with both Bitcoin and Ether registering declines. Meanwhile, the bond market remained relatively stable with minor adjustments in yields across various countries. Commodities like West Texas Intermediate crude and gold futures remained stable.
This article was originally published on Quiver Quantitative