U.S. stocks begin the final week of August with a positive start, Goldman Sachs sells its personal financial management unit, Microsoft emphasizes the need for human control over artificial intelligence, Google plans to license solar and environment data, Nvidia is hailed as the world's most valuable chipmaker, and analysts offer mixed views on the strength of the U.S. consumer and the future of the retail sector.
Stocks sold off and major indexes closed in the red, while U.S. Treasury yields rose for the second consecutive day; China's trade activity fell in August, but not as badly as expected; Apple signed an agreement with Arm that extends beyond 2040, securing access to the Arm architecture; China reportedly banned government officials from using Apple's iPhone for work; and inflationary pressures and the threat of higher interest rates are causing market concerns.
Stocks in the US and Europe continued to slide, with the Nasdaq Composite experiencing its fourth down day and Germany facing a potential recession, while Goldman Sachs CEO David Solomon expressed optimism for a rebound in capital markets if Arm and other IPOs perform well, and former FTX executive Ryan Salame pleaded guilty to campaign finance and money-transmitting crimes.
Katie Stockton discusses the current outlook of the stock market, individual sectors, and cryptocurrencies using key technical indicators, while also highlighting the significance of Apple and Alphabet in light of the iPhone release and the antitrust suit against Google.
European stock markets are expected to open higher on Tuesday as investors await economic data, including U.S. inflation figures and the European Central Bank's rate decision, while Arm IPO's price could potentially surpass $51 per share. Meanwhile, tech investor Paul Meeks plans to buy tech stocks once the market correction subsides, and Federal Reserve officials are reportedly feeling less urgency for another rate hike. HSBC has also named its "must see stocks" in the UK.
Goldman Sachs is relying on the success of tech IPOs, such as Arm, Instacart, and Klaviyo, to boost its revenue and revive other areas of finance, as it has suffered a decline in revenue and faces internal challenges. The performance of these IPOs will determine the company's future and CEO David Solomon's leadership.
Equities edge down as inflation increases more than expected, mortgage applications reach lowest level since 1996, Apple's iPhone updates disappoint investors, UBS initiates coverage on Ford with a buy rating, China denies ban on government workers using foreign-branded devices, JPMorgan downgrades Oracle, antitrust lawsuits against Google begin, and Arm Holdings' IPO is expected to be the largest listing of the year.
Arm stock is experiencing a second day of gains and is currently more popular than Apple.
