Major US indexes closed higher on Friday, as traders weighed the remarks from Fed Chair Powell at the Jackson Hole Summit. The Dow Jones rose 247 points, while the S&P 500 and the Nasdaq added 0.7% and 0.9%, respectively. Powell addressed the string of more resilient than expected economic data all summer long while stating that the Federal Reserve is prepared to raise rates further to bring inflation back to its 2% target. At the same time, Powell suggested that in September, interest rates would remain unchanged to evaluate incoming data, as well as the evolving outlook and potential risks. Among stock, Affirm soared 28.8% and Workday jumped 5.4% on the back of upbeat earnings and revenues. Gap gained 7.1% after delivering mixed quarterly results while Nordstrom slid 7.7% even after posting upbeat results. Marvell Tech sank 6.6% after giving a wary future outlook. On the week, the Dow lost 0.4% while S&P 500 and Nasdaq added 0.2% and 1.1%.
European equity markets are set to close Friday's session with slight losses. Meanwhile, ECB President Christine Lagarde's upcoming remarks, set to occur after the close of the European market, are anticipated to offer insights into the future trajectory of ECB interest rates. Shifting focus to economic data, it was confirmed that the German economy stagnated in the second quarter, following a winter recession. German business morale deteriorated further in August for the fourth month in a row, reaching the lowest level since last October. Both Frankfurt's DAX 40 and the pan-European STOXX 600 inched 0.1% lower on Friday. Looking at the week as a whole, the DAX gained 0.2% and the STOXX 600 added about 0.6%.
The Nikkei 225 Index dropped 2.05% to close at 31,624 while the broader Topix Index lost 0.88% to 2,266 on Friday, snapping a four-day advance. Meanwhile, investors digested data showing the core inflation rate in Japan’s capital city of Tokyo slowed to 2.8% in August from 3% in July, but remained above the Bank of Japan’s 2% target for the 15th consecutive month. Technology stocks led the selloff, with sharp losses from Advantest (-10%), Tokyo Electron (-5.9%), SoftBank Group (-3.1%), Lasertec (-6.9%), Disco Corp (-6%) and Socionext (-5.3%).
The Shanghai Composite fell 0.59% to close at 3,064 while the Shenzhen Component dropped 1.23% to 10,130 on Friday, hitting their lowest levels in at least eight months .Technology stocks led the decline, with sharp losses from Zhongji Innolight (-11.6%), Inspur Electronic (-10%), Foxconn Industrial (-9.4%), iFLYTEK (-3.6%) and Eoptolink Technology (-6.6%). Other heavyweight firms also declined, including Hongbo Co (-10%), ZTE Corp (-3.6%) and China Tourism Group (-4%).
The BSE Sensex closed 0.56% lower at 64887 on Friday, extending losses for a fifth consecutive week, dragged by wide sectoral losses after the Reserve Bank of India's policy meeting minutes signaled near-term inflation risks. The IT and financial services indexes were the worst performers, losing 0.64% and 0.34%, respectively. Domestic equities also slumped due to a recent spike in food prices and a liquidity overhang in the banking system. Among individual stocks, IndusInd Bank (-1.9%), JSW Steel (-1.9%), and LT (-1.8%) experienced the largest losses. Furthermore, Reliance Industries lost 0.46%, extending its weekly losses to 3.46%, marking its worst week in five months. For the week, the Sensex fell 0.1%.
The S&P/TSX Composite index added 0.3% to close at the 19,830 mark . Energy producers led the gains adding 1.3%, as Canadian Natural Resources and Suncor Energy added 1.5% to 1.3% taking advantage of higher crude oil prices. Tech companies also outperformed, rising 1% on average. On the other hand, banks finished 0.4% lower after the nation’s two biggest lenders, RBC and TD Bank, delivered mixed earnings for the June quarter as larger interest incomes clashed with smaller demand for loans. Investors positioned for key earnings next week.
The S&P/ASX 200 Index fell 0.93% to close at 7,115 this weekend trade. Technology stocks led the decline, with sharp losses from Wisetech Global (-4.9%), Xero (-3.4%), Block Inc (-3.6%), Megaport (-3.2%) and NextDC (-1.4%). Other index heavyweights also slumped, including Pilbara Minerals (-7.6%), BHP Group (-1.3%), Commonwealth Bank (-1%), Woodside Energy (-1.3%) and Whitehaven Coal (-6.2%).
