Stock markets in New York rebounded somewhat on Monday after last week’s price losses. The leading Dow-Jones index even had its worst stock market week since March this year. The new week started quietly on Wall Street.
Investors are especially looking forward to the speech that US central bank president Jerome Powell will give at the end of the week at the annual meeting of central bankers in Jackson Hole.
Powell will then probably indicate whether he thinks interest rates should rise further. With a bandwidth of 5.25 to 5.5 percent, interest rates in the United States are at their highest level in 22 years. Investors had hoped that the Federal Reserve would be almost done raising rates. In the minutes of the last policy meeting, however, the central bankers indicated that they are still concerned about the high inflation and that interest rates may have to rise further.
Large American retailers like Lowe’s, Macy’s and Kohl’s will also report results this week. These may provide more insight into the willingness to buy off the American consumer. In addition, attention will be paid to the results of Nvidia, which are scheduled for Wednesday. The chip manufacturer has already risen sharply in value this year due to the optimism surrounding artificial intelligence (AI), for which Nvidia provides products and services.
Many analysts have raised their price targets for Nvidia in the run-up to the results. This time, the British bank HSBC’s connoisseurs raised the share price target, which gained 3.8 percent.
Shortly after the start of trading, the leading Dow was 0.1 percent higher at 34,538 points. The broader S&P 500 gained 0.3 percent at 4384 points, and tech indicator Nasdaq advanced 0.4 percent to 13,347 points.
Palo Alto Networks shot up 15 percent. The cybersecurity company reported results after Friday’s closing bell on Wall Street. That time is highly unusual for Wall Street firms, as investors cannot act on the numbers until after the weekend. Investors feared that the company would come with bad news. The quarterly profit, however, was higher than expected.
Broadcom won 1.7 percent. The American chipmaker has received approval from the British regulator CMA for its planned $61 billion acquisition of cloud company VMware.
