The View from 5th Avenue

The View from 5th Avenue – 21 August 2023

A mixed morning for equities with traders patiently awaiting the Jackson Hole meetings later this week. All eyes will be on Powell’s press conference on the 25th as the “higher for longer” rhetoric takes a firm grip on markets.  All indices bounced at the open with the S&P up about 60bps 30 mins into the session. That gain quickly evaporated, not helped by a headline flagging the 10-year TIPS jumping above 2% for the first time since 2009. In addition, the US10y closed at another high for the year, continuing to push to levels not seen since 2007 and a full point higher since mid-May. Despite these new highs in interest rates, indices were able to shake it off and push higher throughout the afternoon session and into the close. The NASDAQ 100 was the clear winner today up 165 bps. Nvidia (+8.4%) was the main driver behind the rally after another round of bullish calls ahead of the company’s report post close Wednesday.  There are 52 buys on the name and one sell whilst the stock was 30% higher one week after their last report. Not to be overlooked was an impressive gain from Tesla (+7.3%), snapping a six-day losing streak as excitement around the new Cybertruck grows. The Russell was again a notable laggard, down 18bps and 7.3% this month.

The content on this site is available to all Redburn clients as part of Redburn Execution’s standard service. It is not considered substantive research and there are no commercial implications to viewing these pages.

Please enter your email address below to view this page. If you are still unable to access the page, please speak to your account manager.