U.S. Stock Market Outlook: AI becomes the focus of attention, Apple's autumn launch event is coming in the early morning; being included in the s&p 500 index, Dell Technologies and Palantir surge before the market opens.
Apple A18 orders are strong, driving a 34% year-on-year increase in revenue for Taiwan Semiconductor's 3nm process this year. Musk's "internal collaboration": xAI provides technology and Tesla shares the income. Goldman Sachs: If the Federal Reserve cuts interest rates sharply, further unwinding arbitrage trades may pose risks to the US stock market.
US stocks rise in early trading, with all three indexes up, and the Nasdaq up more than 1%! Technology stocks rebound, with Tesla and Nvidia up more than 3%.
This week, the market will closely monitor the inflation data of August CPI and PPI to determine the possible extent of the Fed's interest rate cut in September.
The significant interest rate cut by the Federal Reserve will send a dual signal!
Analysts point out that a 50 basis point rate cut by the Federal Reserve could send the wrong message to the market and the economy, potentially creating a sense of urgency and causing a self-fulfilling recession expectation.
Stocks Uncertain Ahead of CPI Data and Fed Decision
The seven giants are facing a cold reception. Smart money has shifted greatly towards betting on interest rate cuts! Which stocks have become the new darlings of Wall Street?
Data shows that after a quiet rotation in the market in August, Wall Street institutions did not choose to increase their holdings of the seven giants or hot sectors such as AI in the US stock market, but turned to other industries and bet on potential stocks.
The Federal Reserve may use dovish language to compensate for the impact of not cutting interest rates by 50 basis points.
Analysts warn that achieving a soft landing is very difficult, and downturns often come after the first rate cut.