To The Moon

Wall Street rose after Jerome Powell gave a clear signal about a potential interest rate cut in September.

🇺🇸 S&P 500 Index: +1.15% 📈

🇺🇸 Nasdaq Index: +1.47% 📈

🇪🇺 Stoxx 600 Index: +0.46% 📈

🇯🇵 Nikkei 225 Index: +0.40% 📈

🇭🇰 Hang Seng Index: -0.15% 📉

🇨🇳 CSI 300 Index: +0.45% 📈

U.S. stock markets rallied, with the S&P 500 and Nasdaq Composite rising 1.2% and 1.5% respectively, as Jerome Powell signaled the Federal Reserve's clearest indication yet of a potential interest rate cut in September. Meanwhile, the 10-year U.S. Treasury yield fell by 6 basis points to 3.80%. I believe this will be a short term stimulus for US market and push the major indexes up, $Nasdaq100 Bull 3X ETF(TQQQ)$  $S&P 500(.SPX)$  $DJIA(.DJI)$  $Invesco QQQ(QQQ)$ .

Asian markets showed mixed results, with the Shanghai CSI 300 Index rebounding 0.5%, while the Hong Kong Hang Seng Index dipped slightly by -0.2%, dragged down by disappointing earnings from Chinese blue chips. Investors focused on the Fed Chair's remarks for clues on the upcoming interest rate path.

In July 2024, Japan's nationwide core CPI increased by 2.7% year-on-year, the highest level since February, remaining well above the Bank of Japan's 2% target for over two years.

💡 Upcoming Events: 💡

On Monday, we will release the German Ifo Business Climate Index, U.S. Durable Goods Orders, and Core Durable Goods Orders Month-over-Month.

The U.S. Consumer Confidence Index, Japanese Core CPI Year-on-Year, and SPPI Year-on-Year will be released on Tuesday.

On Thursday, investors will focus on U.S. Preliminary GDP Quarter-over-Quarter data, Initial Jobless Claims, and Japanese Consumer Confidence Index.

At the end of the week, we will see the release of revised Michigan University Consumer Sentiment Index, PCE Price Index Month-over-Month, Japanese Tokyo Core CPI Year-on-Year data, Unemployment Rate, Preliminary Industrial Production Month-over-Month, Retail Sales Year-on-Year data, and EU Core CPI and CPI forecast Year-on-Year data.

💡 Things to Know Today: 💡

1. Federal Reserve Chairman Jerome Powell: "The time for policy adjustment has arrived... The upside risks to inflation have diminished, while the downside risks to employment have increased."

Jerome Powell

2. Chinese internet and gaming company NetEase reported Q2 2024 net income of 6.8 billion RMB, a 17% year-on-year decline and below analyst expectations. Despite a rise in video game revenue, its stock listed on the Hong Kong Stock Exchange dropped 10.3%.

NetEase

3. Chinese internet giant Baidu's $Baidu(BIDU)$  Q2 2024 revenue was flat due to intense competition and unclear economic prospects affecting household consumption.

Baidu

4. Chicago Federal Reserve Bank President Austan Goolsbee: "I generally don't like to speak before meetings as it 'ties our hands,' but I've been saying that considering the current level of Fed rate tightening, you would only intentionally tighten when trying to cool down an overheated economy, but right now, it is not overheated."

Austan Goolsbee

5. Bank of Japan Governor Kazuo Ueda: "Japan's short-term interest rates are very low. If the economic conditions improve, rates will be adjusted to a neutral level."

✅ Key Takeaways:

After Jerome Powell's support for an imminent interest rate cut, the market has moved past the dismal sell-off in early August and is now focused on the upcoming FOMC meeting and the pace of monetary policy easing.

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