Title: U.S. Stock Indexes Mixed as Tech Stocks Decline; July PPI Ends 12 Consecutive Declines
Subtitle: U.S. Consumer Confidence Remains Steady, World Oil Demand Expected to Reach Record High in 2023
On August 11, the three major U.S. stock indexes experienced mixed results, with the Dow rising 0.30%, the S&P 500 falling 0.11%, and the Nasdaq falling 0.68%. Both the Nasdaq and the S&P 500 recorded their second consecutive weekly losses.
The decline in the stock market was mainly driven by the fall of large technology stocks. Notably, Nvidia fell 3.62% for the fourth consecutive trading day and experienced an 8.56% drop for the week. Its market value came close to falling below the $1 trillion mark, standing at $1.01 trillion.
In terms of macroeconomics, the U.S. Bureau of Labor Statistics released data showing that the Producer Price Index (PPI) in the United States rose by 0.8% year-on-year in July, ending 12 consecutive months of decline. The market expected a 0.7% increase. Additionally, the PPI saw a 0.3% month-on-month increase in July, marking the largest increase since January this year. These figures indicate a potential shift in inflationary trends.
The University of Michigan Consumer Confidence Index in August remained relatively unchanged from July, with a rating of 71.2, just slightly below expectations. The one-year inflation rate in August dropped slightly to 3.3%, showing stability for three consecutive months. Longer-term inflation expectations also remained steady at 2.9%, indicating consistent consumer sentiment.
Meanwhile, the International Energy Agency (IEA) forecasted that world oil demand would reach a record high in 2023, hitting 102.2 million barrels per day, a 2.2 million barrels per day increase compared to 2022. The IEA also projects a continual rise in oil demand throughout 2024, albeit at a slower pace. The tightening supply and increasing demand contributed to the recent upward trend in oil prices.
In the stock market, the energy and medical sectors experienced gains, with the energy sector leading at 1.56%. However, the technology and communication services sectors faced declines of 0.88% and 0.48%, respectively. Nvidia, Tesla, Facebook (Meta), Microsoft, Google, and Amazon all saw drops in their stock prices.
Despite the mixed performance in the stock market, Eli Lilly reached record highs with a 1.33% increase, exceeding a market value of $500 billion. Energy stocks such as Occidental Petroleum, Marathon Petroleum, and Chevron also rose.
Additionally, UBS Group saw a significant rise of 5.61% after announcing the suspension of a loss guarantee agreement in the Credit Suisse acquisition case with the Swiss government and the Swiss National Bank.
Overall, while U.S. stocks closed with mixed results and technology stocks experienced declines, macroeconomic indicators such as the PPI and consumer confidence remained stable. The projected increase in world oil demand provides optimism for the energy sector and wider economic growth in the future.