US Stock Market News: US Stock Market: Top Stocks to Watch on Monday, List of Key Factors Influencing S&P 500, Dow Jones, Nasdaq
After months of quiet trading, volatility in U.S. stocks has spiked this month as a series of alarming data coincided with the unwinding of a massive yen-fueled carry trade, sending stocks into their worst sell-off of the year. The S&P 500 is still about 6 percent below its record high hit last month, although it has regained ground in a series of rallies following Monday’s devastating sell-off.
US economy
For many investors, the development of the US economy is a problem. After having bet on a soft landing for the US economy for months, they quickly calculated the risk of a more severe downturn after last week’s weaker-than-expected production and employment data.
Although stock prices have risen in recent days, traders believe it will take some time for markets to settle down. In fact, the historical behavior of the Cboe Volatility Index – which posted its biggest daily jump ever on Monday – shows that bouts of volatility typically take months to dissipate.
The index is considered Wall Street’s fear barometer, measuring demand for options to protect against market fluctuations. When it closes above 35 – an elevated level it crossed on Monday – it takes the index an average of 170 sessions to get back to 17.6, its long-term median and a level that is associated with far less extreme investor fear, a Reuters analysis shows.
US market forecast
A potential flashpoint will be the release of consumer price data in the US on Wednesday. Signs that inflation is falling too much could heighten fears that the Federal Reserve has sent the economy into a tailspin by keeping interest rates high for too long, contributing to market turmoil. Overall, companies in the S&P 500 reported second-quarter results 4.1 percent above expectations, in line with the long-term average of 4.2 percent above expectations, according to LSEG data.
Company earnings report
Walmart and Home Depot are among the companies reporting earnings next week, with results expected to provide insight into the state of U.S. consumers after months of elevated interest rates.
At the end of the month, earnings will be announced by chip giant Nvidia, whose shares have risen about 110 percent this year despite a recent sell-off. The Fed’s annual meeting in Jackson Hole, scheduled for August 22-24, will give policymakers another opportunity to refine their monetary policy message before their September meeting.
US election 2024
The US presidential election campaign is also likely to increase uncertainty. With just under three months to go before the election on November 5, investors must prepare for many more twists and turns in an election year that is already one of the most dramatic in recent history.
FAQ
Q1. When are the US elections this year?
A1. Elections will take place in the USA on November 5th.
Q2. What are the major indices of the US stock markets?
A2. S&P 500, Dow Jones Industrial Average and Nasdaq are important indices of the US stock market.
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