US inflation has cooled for four consecutive months in July, and employment data has become the "roadblock" to the last interest rate cut by the Federal Reserve.
In July, the inflation rate in the USA has dropped for the fourth consecutive month, which gives the Federal Reserve the possibility to decrease interest rates next month.
US stock market early trading | The market is betting that the Fed will cut interest rates by 25 basis points in September, and the three major indexes are mixed; kellanova rose more than 7%, the company was acquired by Mars at a premium.
As of press time, the Dow Jones Industrial Average rose by 0.16%; the Nasdaq fell by 0.3%; and the S&P 500 index fell by 0.04%.
U.S. stock market preview: CPI fell for the fourth consecutive month in July, with three major futures indexes slightly down before the market opens; Goldman Sachs: still need to pay attention to retail sales and unemployment benefits data this week.
Kellanova rose over 7% in pre-market trading, and Mars is close to acquiring the company for $83.5 per share; gambling giant Flutter rose over 7% in pre-market trading, with strong performance in Q2 and raised full-year guidance; the USA's mortgage refinancing index has seen the largest increase since 2020, impacted by the decrease in interest rates.
Technology faith is back! Nvidia led the charge with a four-day surge of more than 17%, who else is the strongest rebound king?
Data shows that Nvidia contributed about 22% of the same period S&P 500 index's increase, more than twice the contribution of any other single stock's increase.
Daily options tracking: Investors buying technology stocks on dips! Options of Nvidia and Tesla are popular; Starbucks's change of leadership leads to a surge in stock price, with one call option profiting 789 times.
Tesla rebounded more than 5% overnight. The options for calls increased for many consecutive days, reaching 63.3%. The most active transactions on the options chain are calls for exercising at 210/205 dollars which expire on Friday. Two large orders both achieved a doubling increase, rising by 200%.
Market pricing: USA's recession probability is increasing, Goldman Sachs: 41%, JPMorgan: 31%.
Although the signals from the stock market indicate that there is only a 20% possibility of an economic recession, if the next economic data continues to be weak, the stock and credit markets may experience a significant decline, in sync with the bond market.