To The Moon

Wall Street stocks fell as risk aversion increased with the escalation of the Middle East conflict; the Nikkei index has rebounded after recent sell-offs.

🇺🇸 S&P 500 Index: -0.93%

🇺🇸 Nasdaq Index: -1.53%

🇪🇺 Stoxx 600 Index: -0.38%

🇯🇵 Nikkei 225 Index: +1.93%

🇭🇰 Hang Seng Index: Market Closed

🇨🇳 CSI 300 Index: Market Closed

🇸🇬 Straits Times Index: -0.12%

U.S. stock markets declined, with the S&P 500 and Nasdaq Composite dropping -0.9% and -1.5% respectively, due to renewed investor concerns about the unrest in the Middle East triggered by Iran's missile attack on Israel, which has persisted for a long time.

The U.S. Labor Department's Job Openings and Labor Turnover Survey (JOLTS) showed that job openings increased by 329,000 in August, rising from a revised 7.71 million in July to 8.04 million, primarily driven by the construction industry and state and local government sectors. This means there are 1.13 job openings for every unemployed person, compared to 1.08 in July. This indicates that labor demand is stabilizing, limiting the likelihood of a further increase in the unemployment rate, which is encouraging data.

The U.S. ISM Manufacturing PMI held steady at 47.2, below the expected 47.6. Although it remains in a contraction phase, new orders have improved, input price payments dropped to a nine-month low, and with interest rates declining, this suggests an economic rebound in the coming months.

The Eurozone CPI preliminary data aligned with expectations, showing a year-on-year increase of 1.8%, slightly lower than last month's 2.2%, while core CPI was also in line with expectations, just below last month's 2.8%.

The final Eurozone Manufacturing PMI exceeded expectations, reaching 45.0, down from 45.8 last month, with output, new orders, employment, and purchasing activity all experiencing the fastest decline. As business growth expectations fell to a ten-month low, manufacturers also reduced inventories.

The Hong Kong and mainland China markets are closed due to the Golden Week holiday.

Future Events:

On Wednesday, comments from Federal Reserve members will be closely monitored.

On Thursday, U.S. jobless claims, S&P Global and ISM Services PMI final values, and Eurozone Services PMI final values will attract investor attention.

By the end of this week, we will see the release of U.S. non-farm payroll numbers and the unemployment rate.

Today's Things to Know:

1. Iran launched multiple ballistic missiles at Israel in retaliation for actions against its ally Hezbollah in Tehran. Biden has instructed the military to assist Israel in defense and to intercept missiles aimed at it. U.S. energy companies saw increased purchasing interest, causing oil prices to rise by 2.4% at closing, while the S&P 500 Aerospace and Defense Index climbed to an all-time high.

Iran attack on Israel

2. Strikes at ports along the East Coast and Gulf of Mexico have led to the halt of about half of U.S. ocean freight, remaining a significant risk for investors. The strike, which began on Tuesday, is not expected to cause global supply issues like during the COVID-19 pandemic, but it does introduce more uncertainty for Federal Reserve decision-makers.

Strike at ports

3. Major U.S. automakers $Ford(F)$  $General Motors(GM)$  experienced a decline in vehicle sales in the latest quarter, primarily due to reduced sales days and weakened consumer spending amid inflation challenges and rising interest rates. While crossovers and pickups have been strong sellers, growth appears to be slowing as companies cut costs and demand remains weak.

4. TSMC $Taiwan Semiconductor Manufacturing(TSM)$ , the world's largest contract chipmaker, assured that its regular typhoon preparation procedures initiated before Typhoon Klotang's arrival would keep operations uninterrupted, and no significant impact is expected.

TSMC

5. E-commerce giant JD.com's $JD-SW(09618)$  $JD.com(JD)$  industrial division, the largest industrial supply chain technology and services provider in China, has reapplied for an IPO in Hong Kong after failing last year due to weak market sentiment. This move is aimed at leveraging the Chinese stock market amid strong government support and robust financial performance, with profits up 25% year-on-year during the 6M24 period.

Key Points:

Although U.S. job openings unexpectedly rose in August after declining for two consecutive months, hiring remains weak, consistent with a slowing labor force. Notable economic data further indicates a cooling economy, helping the market reassess the likelihood of further policy easing, especially following recent dovish remarks from the Federal Reserve.

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