U.S. Economic Data Shows Mixed Signals as Inflation Persists and Trade Deficit Widens, While European Fiscal Concerns Weigh on Market Sentiment Ahead of Key Fed Decisions.
Retail earnings season wrapped stronger than expected, with upscale names lifting guidance and discounters like Best Buy and Target showing signs of recovery. Still, Tesla, Home Depot, Lowe’s, Ford, and Bath & Body Works weighed on the ETF.
(VGT) advanced as Nvidia’s Q2 beat highlighted a sharp YoY revenue surge, despite lingering China trade risks. Apple, Broadcom, Snowflake, Microsoft, and Pure Storage all contributed, with Snowflake and Pure Storage both raising FY revenue forecasts.
U.S. GDP Growth Revised Upward to 3.3% Amid Mixed Economic Signals, While Euro Area Sentiment Weakens and Markets Brace for Fed's Interest Rate Decisions.
(XLE) +1.5% surged to $89.32, its highest level since April, as U.S. crude inventories fell by 2.39M barrels, beating forecasts and pushing oil prices higher. Geopolitical tensions over potential sanctions on Russia further supported the sector, with ExxonMobil and Chevron leading gains.
Political tensions deepened after President Trump dismissed Fed Governor Lisa Cook, raising questions about central bank independence and fueling speculation of September rate cuts. Within the fund, Wells Fargo (WFC) hit a 4-week high, while Citigroup (C) reached its strongest level since 2008.
(VGT) +0.8% advanced as speculation over Fed independence and rate cuts lifted tech sentiment. Strong results from MongoDB, which beat on Q2 EPS and raised full-year guidance, drove the sector higher alongside gains in Microsoft and Apple.
Political turmoil in the U.S. and Europe drives market volatility, impacting Fed independence concerns, Treasury yields, and investor sentiment amid economic data releases.
President Trump’s ouster of Fed Governor Cook rattled confidence in central bank independence as durable goods orders fell again. Eli Lilly rose on obesity drug trial results and EchoStar soared on a $23B spectrum deal with AT&T.
(IBB) fell, The FDA announced daily reporting on drug-related adverse events, a move aimed at modernizing surveillance. Still, key holdings like (REGN) and (MRNA) weighed heavily, offsetting positive headlines such as Amgen’s FDA approval.
Powell's dovish remarks spark market rally and interest rate cut expectations, despite ongoing U.S. economic weakness.
(XLF) advanced 1.5%, boosted by Fed Chair Powell’s dovish remarks at Jackson Hole, which fueled hopes for rate cuts and improved borrowing conditions. U.S. banks are lobbying for national standards in banking services, signaling a potential shift in sector regulation.
