Home Business News Earnings monetary policy and data pose risks for US stocks

Earnings monetary policy and data pose risks for US stocks

by LLB Finance Reporter
23rd Aug 23 11:23 am

US stocks were rebounding to a certain extent after they recorded significant price corrections since the beginning of the month.

The rise of the market was then disturbed by the US credit rating downgrade which affected sentiment and raised some concerns among investors, fueling some risk aversion.

Denys Peleshok, Head of Asia at CPT Markets said, “The market could be exposed to some volatility with traders setting their sights on upcoming economic data, company earnings, and monetary policy.

“The Federal Reserve’s event in Jackson Hole later this week could lead to some volatility as traders monitor Jerome Powell’s speech on Friday.

“Markets have been expecting an end to the interest rate hike cycle and could be sensitive to any hints in this regard as another rate hike could still be possible.

“In the meantime, the release of US PMI and home sales figures later today could fuel some volatility as well with traders monitoring the resilience of the US economy.

“The data could impact investors’ expectations regarding monetary policy. However, Nvidia’s earnings results could boost the market if they come better than expected.

“The market has been witnessing significant strength for many months thanks to the interest in artificial intelligence and Nvidia, one of the main actors in the industry, could serve as a proxy for the tech sector’s growth prospects.”

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