2023-08-24 15:21:59
The Dow Jones continues to fall. Recently, it plummeted more than 100 points while investors sold to reduce their risk. ahead of a speech by Federal Reserve Chairman Jerome Powell tomorrow.
As of 10:11 p.m. Thai time, the Dow Jones Industrial Average was 34,358.95 points, down 114.03 points or 0.33%, while the Nasdaq Index and the S&P 500 Index were down 0.91% and 0.50% respectively.
Shares in US chipmaker Nvidia were up 5% at $502.66 on Tuesday. This was the highest level in a year, driven by a surge of interest in artificial intelligence (AI) technology.
Nvidia reported earnings of $2.70 per share in the second quarter, above analysts’ expectations of $2.09 per share.
The company has revenue of $13.51 billion. That was above analysts’ expectations of $11.22 billion.
Nvidia’s share price has surged more than 220% since the start of 2023 as analysts raised their price target for Nvidia stock to $600 from $500.
The rally in stock made Nvidia a company with a market capitalization of more than $1 trillion.
Investors are keeping an eye on the Fed’s annual meeting in Jackson Hole, Wyoming, which kicks off today.
The Fed held its annual meeting in Jackson Hole on Aug. 24-26 titled “Structural Shifts in the Global Economy.”
Markets are closely watching Fed Chairman Jerome Powell’s statements at the meeting. to look for signals indicating the direction of US interest rates Powell will deliver his speech tomorrow at 10:05 a.m. U.S. time or 9:05 p.m. Thai time.
The meeting in Jackson Hole is considered a meeting that has received a lot of attention. by central bank governors, finance ministers, academics and financial experts. from countries around the world will travel to attend the said meeting A highlight will be the Fed chairman’s speech on his vision of monetary policy. and US economic outlook
Goldman Sachs released a report stating that The Fed has ended its rate-raising cycle. Although Mr. Powell did not explicitly say that at a press conference after the July 26 Fed meeting.
“We expect the Fed’s rate hike on July 26 to be the last hike in the current cycle. And we expect the Fed to hold interest rates steady in September. The Fed will conclude in November that inflation has slowed sufficiently that there is no need for further interest rate hikes,” the report said.
Investors expected the same. Fed to Hold Rates at September Meeting and for the rest of this year before the interest rate cut in 2024
Powell said at a news conference on July 26 that the Fed does not predetermine monetary policy direction. The decision will be made in the meeting on a case-by-case basis. Which will be considered from the economic situation at that time
“There is a possibility that we may raise interest rates at the September meeting. If economic data during that period encourages us to do so, But there is also the possibility that we may hold interest rates at the September meeting. If doing so is in line with our policy stance,” Powell said.
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