Main topic: The stock market uptrend is facing pressure ahead of earnings reports from technology companies like Nvidia, Marvell Technology, Workday, and Snowflake.
Key points:
1. Nvidia, a leading technology company, is set to report earnings and is currently testing its 10-week moving average.
2. Marvell Technology is expecting revenue growth to accelerate in the second half of the year despite declining earnings and revenue.
3. Workday is showing relative strength and analysts are expecting another solid quarter of growth in both profit and revenue.
China's stock market has experienced a bearish performance recently, with the benchmark stock index reaching a 9-month low, and there are concerns about the longer-term equilibrium interest rate highlighted by Fed Chair Powell's remarks at the upcoming Jackson Hole Economic Symposium.
Global stock markets are expected to experience a correction in the coming months, although analysts predict marginal gains by the end of 2023, as concerns about underperformance persist and money market rates overshadow the appeal of equities.
Global markets show mixed performance, with Japan, China, Hong Kong, India, and Australia experiencing modest gains, while the US markets closed higher fueled by optimism over a possible pause in interest-rate hikes, as oil prices extend gains and gold prices remain near three-week highs.
Summary: While the ups and downs of the stock market can be frustrating, history has shown that investing in strong companies like Amazon can lead to significant returns, while companies like Peloton face uncertain long-term growth prospects.
The stock market experienced a correction as Treasury yields increased, causing major indexes to break key support levels and leading stocks to suffer damage, while only a few stocks held up relatively well; however, it is currently not a favorable time for new purchases in the market.
Most Middle Eastern stock markets had a mixed performance following the Federal Reserve's indication of another rate hike, while Egypt's main equity index reached a record high due to strong gains in fertilizer and chemical shares.
The Israel-Hamas conflict in West Asia led to a decline in the stock market, with financials and RIL leading the slide, while IT, FMCG, and pharma partially cushioned the fall; analysts predict that geopolitical tensions and rising oil prices could disrupt the optimistic outlook on quarterly earnings.
Emerging-market stocks have faced a challenging quarter due to various factors, but some experts believe this presents an opportunity for a potential rebound, with emerging-market stocks excluding China having outperformed developed-market stocks excluding the U.S. so far this year.
The Nasdaq Composite gained over 30 points, while the Dow dipped by 0.58%, and the S&P 500 fell by 0.17% as U.S. stocks showed mixed performance. Retail traders and investors focused on stocks such as Marathon Digital Holdings, Riot Blockchain, MicroStrategy Incorporated, Coinbase Global, and Tesla, with their performance influenced by the positive momentum in Bitcoin.
Despite positive economic news, the stock market experienced a decline due to the realization that interest rates are likely to remain high, resulting in a decrease in stock valuations; however, the market is expected to rebound in the long term due to strong earnings growth and a solid economic foundation.