(Morning) Nasdaq and S&P 500 hit new highs as expectations for rate cuts rise following comments from U.S. Treasury Secretary Yellen | Market Overview | Moneyクリ Monex Securities' investment information and money-related media

【US Stock Market】New York Market

NY Dow: 44,922.27 △463.66 (8/13)

NASDAQ: 21,713.14 △31.24 (8/13)

1. Overview

The US market the previous day saw all three major indices rise. The Dow Average opened trading at $44,571, up $112. US Treasury Secretary Janet Yellen expressed in an interview with Bloomberg that "we could begin a series of rate cuts starting with a 0.5% cut in September," which increased expectations for a rate cut at the next FOMC (Federal Open Market Committee) meeting, serving as a catalyst for buying. Additionally, there was buying interest in defensive stocks and consumer-related stocks that had lagged behind.

The Dow Jones Industrial Average expanded its gains in the early stages, fluctuating back and forth around midday, but aimed for higher levels again towards the end, ultimately closing up 463 points at 44,922 points. The Nasdaq Composite Index, which is heavily weighted with technology stocks, rose by 31 points to 21,713 points, marking a new high for the second consecutive day. The S&P 500 Index also hit a new high, closing up 20 points at 6,466 points.

2. Economic indicators, etc.

There were no major economic indicators announced.

3. Sector Trends

In the S&P 500 sectoral stock price index, 8 sectors rose. In particular, the four sectors of materials, healthcare, consumer discretionary, and energy saw increases of more than 1%. On the other hand, three sectors, including communication services, experienced declines of less than 1%.

4. Individual Stock Trends

Among the 30 stocks in the Dow Average, 24 stocks increased. UnitedHealth Group [UNH] rose nearly 4%, leading the gainers. Three stocks, Nike [NKE], Sherwin-Williams [SHW], and Merck [MRK], saw increases in the 3% range. Additionally, Home Depot [HD], Walt Disney [DIS], Salesforce [CRM], IBM [IBM], and Travelers Companies [TRV] had increases in the 2% range. Amazon.com [AMZN] announced plans to launch same-day grocery delivery services in 2,300 cities across the U.S. by the end of 2025, resulting in a 1.4% increase.

On the other hand, 6 stocks declined. Walmart [WMT] fell by 2.5% as selling pressure increased due to concerns over intensified competition following Amazon's announcement. Additionally, Microsoft [MSFT] and Cisco Systems [CSCO] have both dropped by more than 1%.

Outside of the Dow average constituent stocks, CoreWeave [CRWV], which provides cloud services for AI, saw its outlook dim due to rising costs amid rapidly expanding data center demand, resulting in a 20.8% decline. Supermarket chain Kroger [KR] was sold off due to concerns over intensified competition from Amazon mentioned above, leading to a 4.4% decline.

5. Exchange Rates, Interest Rates, etc.

Long-term interest rates fell to 4.23%, down 0.06% from the previous day. The dollar-yen exchange rate is hovering in the low 147 yen range on the morning of the 14th.

VIEW POINT: Today's Perspective

The US market saw all three major indices rise, with the Nasdaq Composite Index and S&P 500 Index reaching new highs. The strength of the US market is likely to serve as a buying incentive for today's Japanese market. On the other hand, there has been a rapid increase since the beginning of this week, which may lead to profit-taking sales that could cap further gains.

(Monex Securities Financial Intelligence Department Keita Yamaguchi)