Consumer spending drives a moderate contraction in the US economy. US GDP Annualized 2Q22 QoQ was revised higher, booking a moderate contraction of -0.6% (Vs. Est. -0.9%; 1Q22 -1.6%); as Personal Consumption 2Q22 QoQ was revised up to +1.5% (Vs. Est. +1.0%; 1Q22 +1.8%). GDP contraction for two consecutive quarters with moderate tendency indicates that the US is only hit by a Technical Recession. Meanwhile, lower FFR hike will support a number of growth-oriented sectors, as the probability of a September FFR hike of +50Bps is higher than +75Bps. The upward trend in high-valued technology stocks including NVDA, AAPL, AMZN, and GOOGL, contributed significantly to the strengthening of Nasdaq. The technology index rose more than 200 points.
The effect of the Jackson Hole symposium results will be seen on the JCI next Monday, making a number of investors to take profit. JCI was down 50 points in the first trading session, before finally closing only 20 points lower yesterday. The annual Jackson Hole symposium began on Thursday, and the Fed chair is scheduled to give a speech on Friday. Market expectations are split, assuming US Headline CPI Jun. YoY has peaked +9.1% (Vs. Jul. +8.5%), some economists project September FFR increase of only +50Bps to 2.75%-3.00%. NHKSI Research projects that JCI will be Consolidating, with Support: 7.140 / 7,100 / 7.070-7,060 and Resistance: 7,210 7,230 / 7,260 / 7,300-7,350.
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