This article will be updated throughout the day, so check back often for more daily updates.
The Vanguard S&P 500 ETF (NYSEMKT: VOO) is set to open 0.3% lower on Monday after scoring a big 1.5% gain on Friday, as traders digest their winnings and wonder “what’s next?” this week. Prospects for a September reduction in interest rates rose to 84% Friday after Fed Chairman Jerome Powell expressed openness to the idea of cutting rates, but that decision still remains about three weeks off.
The next Federal Open Market Committee (FOMC) meeting is scheduled for September 16-17.
More immediately, investors are looking ahead to earnings reports from Nvidia (Nasdaq: NVDA) on Wednesday, and then Dell (NYSE: DELL) and Marvell (Nasdaq: MRVL) on Thursday, as indications of the tech sector’s health. Then on Friday, we’ll hear from the U.S. Bureau of Economic Analysis (BEA), reporting the Personal Consumption Expenditures (PCE) price index for July, which is the Fed’s preferred gauge of the annual inflation rate.
“Core” PCE is expected to rise slightly from June, up 0.1 percentage point to 2.9%.
In other news, the rumors proved true. On Friday, Commerce Secretary Howard Lutnick confirmed that the U.S. government has taken a 10% stake in Intel (Nasdaq: INTC) stock. The government paid $8.9 billion to acquire 433.3 million Intel shares at $20.47 per share, a discount to its then-current market price.
$5.7 billion of the payment came from “grants under the CHIPS Act that had been awarded but not paid,” reports CNBC. The remaining $3.2 billion will come from other government awards. The government also has a warrant to buy a further 5% of Intel shares should Intel lose majority ownership of its contract chipmaking business.
Earnings
Earnings reports are typically light on Monday. Today our biggest news comes from Temu-owner Pinduoduo (Nasdaq: PDD), which soundly beat forecasts with a report of RMB22.07 in Q2 earnings. Revenue was a smaller beat, RMB 104 billion versus the RMB103.2 billion expectations.
Pinduoduo shares, which are not an S&P 500 component, are down 2.5% premarket.
The post Stock Market Live August 25: Investors Hold Breath Awaiting Nvidia Earnings, S&P 500 (VOO) Edges Lower appeared first on 24/7 Wall St..
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Author: Joel South
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