Nasdaq ends sharply up, fueled by Nvidia and Amazon

Record ID: 1686158

  • Title: Nasdaq ends sharply up, fueled by Nvidia and Amazon
  • Date: 25th August 2022
  • Summary: ALLENTOWN, PENNSYLVANIA, UNITED STATES (AUGUST 25, 2022) (REUTERS) (SOUNDBITE) (English) CFRA RESEARCH, CHIEF INVESTMENT STRATEGIST, SAM STOVALL, SAYING: “I think the market is essentially waiting Fed (Federal Reserve) Chair Powell’s comments on Friday from the Jackson Hole meeting to give some sort of a hint as to how hawkish or dovish the Fed might be at the upcoming September FOMC meeting.” WHITE FLASH (SOUNDBITE) (English) CFRA RESEARCH, CHIEF INVESTMENT STRATEGIST, SAM STOVALL, SAYING: “I don't believe he (Fed Chair Powell) is going to tip his hand as to whether it's likely to be a 75 or a 50 basis point increase, mainly because we've got at least a month's worth of data before that actual meeting. So, I would tend to say that he is going to not commit himself that would require him to backpedal, should the data change.” WHITE FLASH (SOUNDBITE) (English) CFRA RESEARCH, CHIEF INVESTMENT STRATEGIST, SAM STOVALL, SAYING: “Well, the market had been up, then it was down, now it is up again. So, I think it's really more of a trader's paradise that's taking advantage of some daily swings because investors are not willing to make a commitment as to being overly bullish at this point because they feel that there could be significant increases in Fed funds rate in the next several quarters. Our expectation is that the Fed will raise rates by 50 basis points at the September meeting and then two more times by 25 basis points before the year is out.”
  • Embargoed: 8th September 2022 21:01
  • Keywords: Dow Fed Chair Jackson Hole Jerome Powell Nasdaq S7P 500 rate hike
  • Location: NEW YORK, NEW YORK + ALLENTOWN, PENNSYLVANIA, UNITED STATES
  • City: NEW YORK, NEW YORK + ALLENTOWN, PENNSYLVANIA, UNITED STATES
  • Country: USA
  • Topics: Economic Events,Equities Markets,United States
  • Reuters ID: LVA002070525082022RP1
  • Aspect Ratio: 16:9
  • Story Text:The Nasdaq ended sharply higher on Thursday (August 25), lifted by gains in Nvidia and other technology-related stocks as investors focused on the Federal Reserve's Jackson Hole conference for clues about the central bank's policy outlook.
    Fed Chair Jerome Powell is due to give a speech on Friday that investors will dissect for indications of how aggressively the Fed may move to raise interest rates as it battles decades-high inflation.
    “I think the market is essentially waiting Fed Chair Powell’s comments on Friday from the Jackson Hole meeting to give some sort of a hint as to how hawkish or dovish the Fed might be at the upcoming September FOMC meeting,” said Sam Stovall, chief investment strategist at CFRA Research.
    “I don't believe he is going to tip his hand as to whether it's likely to be a 75 or a 50 basis point increase, mainly because we've got at least a month's worth of data before that actual meeting. So, I would tend to say that he is going to not commit himself that would require him to backpedal, should the data change,” Stovall added.
    The yield on the closely watched 10-year Treasury note faded after recently hitting a two-month high. Declining interest rates tend to benefit technology stocks trading at high valuations.
    "Lower interest rates have certainly put some support underneath some of the more growth-oriented sectors," Northey said.
    Nvidia rose after the graphics chipmaker gave a weaker-than-expected quarterly forecast that many investors viewed as signaling the worst of a sales downturn may be over. That drove a rally in the Philadelphia semiconductor index.
    Apple, Amazon and Google-owner Alphabet also rose, making substantial contributions to the Nasdaq's increase.
    Data earlier in the day showed the U.S. economy contracted less than initially thought in the second quarter, dispelling some fears that a recession was underway.
    Traders see a slightly greater likelihood of a third 75-basis-point interest hike from the Fed at its policy meeting next month, compared with a 50-basis-point increase.
    Fed officials on Thursday were noncommittal about the size of the interest rate increase they plan to approve at their Sept. 20-21 meeting, but they continued hammering the point that rates will rise and stay high until such high rates of inflation have been squeezed from the economy.
    The S&P 500 gained 58.35 points, or 1.41%, to end at 4,199.12 points, while the Nasdaq Composite gained 207.74 points, or 1.67%, to 12,639.27.
    The Dow Jones Industrial Average rose 322.55 points, or 0.98%, to 33,291.78.
    (Production: Kyoko Gasha)
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