This week’s core market narrative: Will the Federal Reserve hold interest rates steady in September?

U.S. CPI, PPI, and retail sales data for July softened across the board, compounded by a cooling labor market, causing the market’s implied probability of a Federal Reserve rate hike in September to plunge from 75% to 25%, thereby driving global equities higher for three consecutive weeks. However, oil prices remain elevated, and the U.S. Treasury yield curve is steepening, with the long end of the bond market continuing to price in inflation and fiscal deficits. The Jackson Hole symposium in two weeks will serve as a key bellwether.

wallstreetcn54minutes ago

U.S. Market Close | Trump threatens to declare the Strait of Hormuz as U.S. territory; three major indices close slightly lower. Optical communication stocks strengthen: AAOI surges 15%, Lumentum rises over 5%; drone stock UMAC jumps 25%.

The Dow Jones Industrial Average fell 0.2%, the S&P 500 Index declined 0.17%, and the Nasdaq Composite dropped 0.28%. Most large-cap technology stocks retreated, with the Mag 7 Index down 0.17% and Amazon falling nearly 1%. SpaceX shares also dipped by close to 1%. In contrast, memory chip stocks broadly rose against the trend: SanDisk surged 7.39%, bringing its weekly gain to 35.38%; AMD advanced 6.50%; and NEBIUS climbed 8.88%. Meanwhile, Applied Materials and Broadcom each fell more than 5%.

wallstreetcn07:08

Fed’s Goolsbee: Seeks More Evidence of Cooling Inflation, with Stable Employment and Economic Growth

Chicago Fed President Goolsbee stated that inflation data over the past three months have been "encouraging," but several more months of similar performance are needed to confirm that inflation is returning to its 2% trajectory. He cited inflation as his primary current concern, noting that the U.S. economy remains "broadly stable" in terms of growth and the labor market.

wallstreetcn06:47

Top 20 by Trading Volume | SanDisk rises another 7%, surging over 35% this week; Google Class A shares become Berkshire Hathaway’s fourth-largest holding; AI financing concerns intensify, Broadcom plunges nearly 6%; Reddit to be included in the S&P 500 In

SanDisk, the top stock by trading volume, closed up 7.39% with $33.63 billion in turnover. In the previous trading session, SanDisk announced a series of financial targets for fiscal years 2028 to 2030, including maintaining mid-to-high double-digit revenue growth during this period. SanDisk has continued its upward momentum, rising more than 35% cumulatively this week.

Futu News06:18

U.S. July retail sales unexpectedly declined, and the August University of Michigan Consumer Sentiment Index missed forecasts, further dampening expectations for an early interest rate hike; the dollar rebounded to 158.60.

[London Market Overview] The dollar/yen pair remained firm in the London foreign exchange market on the 14th. Initial dollar selling, triggered by a decline in crude oil prices, pushed the pair down from 159.22 yen to 159.06 yen. However, as U.S. 10-year Treasury yields did not fall, the dollar saw some buying support. The euro/dollar edged higher, rising from $1.1550 to $1.1557, but lacked momentum due to a scarcity of market-moving catalysts. The euro/yen slowed from 183.94 yen to 183.75 yen, yet followed the dollar/yen’s trend, displaying resilient support on the downside.

Fisco Japan05:39

Under Abel’s leadership for six months, Berkshire Hathaway significantly increased its stake in Google, with Class A shares rising to become one of the top five holdings; the company also boosted its positions in airline and real estate stocks in Q2.

In the second quarter, the combined market value of Berkshire Hathaway’s two classes of shares in Alphabet, Google’s parent company, increased by over $17 billion. Holdings of Class C shares rose more than sixfold quarter-over-quarter from the first quarter, entering the top ten holdings for the first time, while Class A shares increased by 45%, raising the position to fourth place. The stake in Delta Air Lines, initiated in the first quarter, grew by 44%, adding $2.6 billion in market value; the holding in homebuilder Lennar increased by 25%. Meanwhile, Berkshire further reduced its position in Bank of America, cutting $1.72 billion in market value during the quarter, and decreased its stake in financial services firm Capital One by 58%, while halving its holding in steelmaker Nucor. Apple remained the largest holding, with the position unchanged for the second consecutive quarter.

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