Tech Stocks Rally… Nvidia Rebounds After 5 Trading Days
97% Chance of Rate Cut… Focus on Employment Report on the 5th,
Jerome Powell, Chairman of the U.S. Federal Reserve, and U.S. President Donald Trump. Reuters,
, ‘[Seoul Economy] ‘,
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, ‘Expectations for a rate cut are expanding due to signs of employment recession from U.S. President Donald Trump’s mutual tariff, leading all three major indexes of the New York Stock Exchange to close with strong gains.’,
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, ‘On the 4th (local time) at the New York Stock Exchange, the Dow Jones Industrial Average rose by 350.06 points (0.77%) to close at 45,621.29. The S&P 500 Index went up by 53.82 points (0.83%) to 6,502.08, and the Nasdaq Composite rose by 209.97 points (0.98%) to finish at 21,707.69.’,
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, ‘Amid a broad rise in major tech stocks, Nvidia broke a five-day losing streak by rising 0.61% following reports of Chinese companies like Alibaba developing their own AI semiconductors. Other tech companies also showed strength, including Microsoft (0.52%), Apple (0.55%), Amazon (4.29%), Meta (1.57%), Alphabet, Google’s parent company (0.71%), Broadcom (1.23%), Tesla (1.33%), and Netflix (2.55%). However, U.S. cloud software firm Salesforce plunged 4.85% as its third-quarter earnings outlook fell short of market expectations.’,
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, ‘The broad rally in the New York stock market is interpreted as a result of economic indicators suggesting worsening U.S. employment, raising expectations that the Federal Reserve will cut rates this month. The U.S. Department of Labor reported that the initial unemployment claims for the week ended August 30th reached 237,000, the highest since June. Additionally, the private employment report from ADP showed an increase of only 54,000 new hires in August, significantly below the market forecast of 75,000.’,
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, ‘On Wall Street, there is widespread belief that the U.S. Department of Labor’s employment report for August, to be released on the 5th, will be a key determinant for the Federal Open Market Committee’s (FOMC) rate decision on September 16-17. According to the Chicago Mercantile Exchange’s (CME) FedWatch, the federal funds futures market reflected a 97.3% probability of a 25 basis point (bp = 0.01%) rate cut in September.’,
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