US OPEN: Stock Market in the Shadow of Jackson Hole

The market is recovering some of the losses from this week ahead of Jackson Hole. Investors are anxiously awaiting the speech by the FED Chairman, Jerome Powell. The address, regardless of the direction of indices at the opening, will determine the further sentiment in the market, not only for the current session but also for the coming weeks. The US500 gains 0.25% at the opening, while the US30 rises by 0.60%.

In light of high asset valuation indicators, markets are expecting a signal from the FED on whether these valuations are justified. Prices are supported by yesterday's high PMI, which was significantly above expectations. However, this, combined with the FOMC Minutes, may prompt the Federal Reserve to maintain interest rates longer. In the context of a noticeably weaker labor market, this could negatively impact consumers.

Since the beginning of the week, technology companies have been weighing on the market. Today, it is mainly NVIDIA and AMD, which are depreciating by about 1% before the opening due to distribution issues with H20 chips. SMCI and Workday are also losing ground. This trend is eased today by Zoom, which gains after optimistic profit forecasts.

US100 (H4)

From a technical standpoint, the US technology index has shown weakness in recent days. The price on the 4-hour interval is currently below the 25, 50, and 100-session averages, barely remaining on the EMA200 (yellow). Currently, the price has broken down from the upward channel. If the rate does not quickly return above the trend line, the index may face further depreciation. The first support is at the level of 22,800 points, marked by the last low and the lower limit of the consolidation from a month ago. If this zone is breached, a clear resistance is only at the level of 21,644 points.

Source: xStation5

Company News

Intuit (INTU.US) - The company published its results after the close of Thursday's session. Despite beating expectations, conservative forecasts for 2026 disappointed. After the reports were published, several investment banks lowered the target price for the company's shares, causing a more than 5% depreciation before the market opened.

NVIDIA (NVDA.US) - According to analyses conducted by the Chinese government, local equivalents of the Californian giant's chips are more suitable for applications in government enterprises. This news causes a 1% depreciation before the market opens.

Zoom (ZM.US) - The revenue forecast for the end of the year has been raised. Additionally, RBC raised the target price for shares to $100. Positive news drives growth, over 5% before the market opens.

Workday (WDAY.US) - The HR services and software provider disappointed investors with subscription revenue forecasts. The company's price falls by more than 4% before the market opens.

GAP (GAP.US) - The clothing distributor loses over 1% at the market opening. This is due to a downgrade by an investment bank, indicating tariff pressure on the company's future results.