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US, European markets performe mixed amid focus on Nvidia, federal interest rate cuts, key economic data
(MENAFN) U.S. stock indices exhibited mixed results on Monday, with the Dow Jones Industrial Average gaining while the S&P 500 and Nasdaq slipped, as investors closely monitored Nvidia's upcoming earnings report and a critical inflation report due later this week. Geopolitical tensions in the Middle East also contributed to a cautious market sentiment. The Dow Jones managed to climb 0.44 percent to reach 41,357, hitting a record high and rebounding from a sell-off earlier in August. This upward movement reflects traders' anticipation of potential interest rate cuts by the Federal Reserve, which have been eagerly awaited amid concerns over economic data that had previously triggered a sell-off and raised fears about the impact of higher borrowing costs on the U.S. economy. In contrast, the S&P 500 fell 0.30 percent to 5,617, and the Nasdaq declined by 1 percent to 17,690.
The outlook for U.S. stocks remains positive, buoyed by Federal Reserve Chairman Jerome Powell's recent remarks hinting at forthcoming interest rate cuts, which have provided relief to Wall Street. Market participants are speculating that the Fed may reduce rates by 25 basis points in each of its meetings in September, November, and December. According to Sam Stovall, chief investment strategist at CFRA Research, this cautious approach is intended to reassure the market that the Fed is not lagging behind in its response to economic conditions, while also avoiding a premature shift to a more accommodative monetary policy. Investors are now keenly awaiting Nvidia's financial results on Wednesday and the release of the Personal Consumption Expenditures (PCE) data later this week, both of which are expected to significantly influence market direction.
In Europe, stock markets remained largely unchanged on Monday as investors braced for a week filled with crucial economic data. The pan-European STOXX 600 index was flat at 518.22 points during trading, having reached its highest level in over three weeks on Friday and marking a third consecutive week of gains. The European markets saw mixed performance, with the STOXX 600 dipping slightly by 0.04 percent, the German DAX falling 0.30 percent, while the British FTSE and French CAC rose by 0.48 percent and 0.13 percent, respectively. Switzerland reported a 1.3 percent increase in non-farm payrolls for the second quarter, and detailed GDP data from Germany, Europe’s largest economy, is expected on Tuesday. The week ahead is packed with key economic indicators from the Eurozone, including preliminary consumer price data from Spain, German retail sales figures, and additional preliminary consumer prices. The week will culminate with crucial data releases, including employment data from Germany, consumer price data from France and Italy, and U.S. personal consumption spending figures, all of which will provide further insights into the state of the global economy.
The outlook for U.S. stocks remains positive, buoyed by Federal Reserve Chairman Jerome Powell's recent remarks hinting at forthcoming interest rate cuts, which have provided relief to Wall Street. Market participants are speculating that the Fed may reduce rates by 25 basis points in each of its meetings in September, November, and December. According to Sam Stovall, chief investment strategist at CFRA Research, this cautious approach is intended to reassure the market that the Fed is not lagging behind in its response to economic conditions, while also avoiding a premature shift to a more accommodative monetary policy. Investors are now keenly awaiting Nvidia's financial results on Wednesday and the release of the Personal Consumption Expenditures (PCE) data later this week, both of which are expected to significantly influence market direction.
In Europe, stock markets remained largely unchanged on Monday as investors braced for a week filled with crucial economic data. The pan-European STOXX 600 index was flat at 518.22 points during trading, having reached its highest level in over three weeks on Friday and marking a third consecutive week of gains. The European markets saw mixed performance, with the STOXX 600 dipping slightly by 0.04 percent, the German DAX falling 0.30 percent, while the British FTSE and French CAC rose by 0.48 percent and 0.13 percent, respectively. Switzerland reported a 1.3 percent increase in non-farm payrolls for the second quarter, and detailed GDP data from Germany, Europe’s largest economy, is expected on Tuesday. The week ahead is packed with key economic indicators from the Eurozone, including preliminary consumer price data from Spain, German retail sales figures, and additional preliminary consumer prices. The week will culminate with crucial data releases, including employment data from Germany, consumer price data from France and Italy, and U.S. personal consumption spending figures, all of which will provide further insights into the state of the global economy.
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