US Stock Market Waits for Jackson Hole and Ukraine Agreement

Bond yields remain in a downward trend, dollar rises slightly

Cryptocurrencies decline

On the 18th (local time), the US stock market opened with mixed movements ahead of progress on the Ukraine peace agreement and the Jackson Hole meeting.

At 10 a.m. Eastern Standard Time, the S&P 500, NASDAQ, and Dow Jones Industrial Average were all fluctuating at levels similar to last Friday. These indices continued to hit record highs last week.

The yield on the 10-year US Treasury was unchanged at 4.31%. The Bloomberg Dollar Spot Index rose by 0.2%. The policy-sensitive 2-year Treasury yield dropped significantly last week on expectations of a rate cut in September, but it is now trading around 3.737%.

Cryptocurrencies, which were strong last week, turned bearish. Bitcoin fell 1.7% to $115,701.67, and Ether declined 2.6% to $4,353.54.

Novo Nordisk's share price jumped over 4% after its obesity treatment, Wegovy, received fast-track approval from the US Food and Drug Administration (FDA) as a treatment for severe liver disease.

The stock price of solar panel company Sunrun surged nearly 9% after RBC Capital Markets upgraded its investment rating. RBC Capital Markets mentioned that recent Treasury guidance making Sunrun eligible for tax benefits could be a catalyst.

The Federal Reserve's annual economic policy symposium starts on the 21st in Jackson Hole, Wyoming. Chair Jerome Powell is expected to announce strategies for the Fed's new policy framework during his speech on Friday.

According to the CME Group's FedWatch Tool on the day, the probability of a rate cut in September in the interest rate swap market is estimated at 85%, slightly lower than last week.

This week, major retailers including Walmart, Target, and Home Depot are set to announce their earnings results.

According to FactSet, 92% of S&P 500 companies have already reported earnings, with about 82% surpassing Wall Street expectations.

Jung-A Kim, Guest Reporter kja@hankyung.com