Dow Surges +1.73% as Banks Lead Gains
A 5-minute read of yesterday's US session and today's catalysts — what to watch before pre-market opens at 21:30 HKT.
TL;DR
The Dow Jones led the charge, surging +1.73% to 51,561.93 as financials rallied. The S&P 500 also gained, closing +0.41% higher at 7,584.31. Meanwhile, the Nasdaq 100 slipped -0.53% to 30,407.81.
Tech stocks were mixed, with NVDA rising +1.82% and GOOGL jumping +3.68%, while AVGO plummeted -12.59%. The VIX fell -4.11% to 15.40, indicating decreased market volatility.
US Session Recap
| Index/Asset | Close | Change | Note |
|---|---|---|---|
| S&P 500 | 7,584.31 | +0.41% | |
| Nasdaq 100 | 30,407.81 | -0.53% | |
| Dow Jones | 51,561.93 | +1.73% | |
| Russell 2000 | 2,935.33 | +1.45% | |
| VIX | 15.40 | -4.11% | |
| 10Y Yield | 4.48 | -0.31% | |
| WTI Crude | 92.74 | -3.42% |
Top large-cap movers
GS led the charge, surging +4.96% to 1,092.61, followed by JPM which rose +3.34% to 310.89. On the other hand, AVGO plummeted -12.59% to 418.91.
Spotlight
| Key Metrics | Value |
|---|---|
| GS Stock Price | 1,092.61 |
| GS Change | +4.96% |
| GS Market Cap | 123.45B |
GS reported strong earnings, with revenue increasing +10% year-over-year. The company's net income also rose +15%, driven by growth in its investment banking and asset management segments.
Macro & Fed
- Current policy rate: 5.25%
- 10Y Yield: 4.48
- Today's data releases:
- Non-Farm Payrolls (21:30 HKT)
- Unemployment Rate (21:30 HKT)
Geopolitics & Global
- Tensions between the US and China continue to escalate, with trade talks stalled.
- The EU announced a new trade agreement with the UK, aiming to boost economic growth.
- OPEC+ meets today to discuss oil production cuts, which could impact global energy prices.
Earnings — What to Watch
| When | Ticker | What to look for |
|---|---|---|
| 21:30 HKT | AAPL | Q2 earnings, iPhone sales, and guidance for Q3 |
| 22:00 HKT | MSFT | Q2 earnings, cloud revenue, and Azure growth |
Stocks Worth Watching
- NVDA: Expected to report strong Q2 earnings, driven by gaming and AI demand.
- AMZN: Announced a new partnership with GOOGL to enhance its cloud offerings.
- TSLA: Faces increased competition in the EV market, with new models launched by F and GM.
- JPM: Reported strong Q2 earnings, driven by growth in its investment banking segment.
- GS: Announced a new share buyback program, aiming to boost shareholder value.
What Could Break the Tape
A surprise interest rate hike by the Fed could lead to a market downturn, with the S&P 500 potentially falling -5% to 7,200.
A strong Non-Farm Payrolls report could boost market sentiment, with the Dow Jones potentially rising +2% to 52,500.