U.S. markets showed signs of AI and semiconductor stocks being capped by elevated crude oil prices and rising long-term interest rates this week, while reports indicate that interest in resource and high-dividend stocks is growing in connection with the Nikkei.
U.S. markets rose for a second consecutive week, with the Dow Jones Industrial Average closing at $53,417.16, up $140.15 from the previous weekend. The Nasdaq Composite closed at 25,980.19 points, down 200.26 points from the previous weekend, while the SOX Index fell 317.20 points from the previous day to 11,423.17 points.
Tensions involving the U.S., China and the Middle East, together with persistently high crude oil prices, encouraged U.S. long-term interest rates to rise. Reports indicated that long-term yields began to recover even after the Treasury announced an expansion of its buyback operations. This is expected to create upside pressure on U.S. AI and semiconductor-related stocks.
Regarding Nvidia's earnings, the company's revenue guidance for the second quarter of fiscal 2027 is reported to be $91 billion, ±2%, slightly below the market consensus of $91.9 billion–$92.0 billion. Guidance from the third quarter onward will be a key focus, while management comments on the conference call following the earnings release are expected to provide an important catalyst.
At the Jackson Hole conference, the market's attention will center on Fed Chair Warsh's first keynote address, scheduled for around 10 a.m. on 28 August, with the focus on whether he will maintain a fact-based, flexibility-focused style. The speech is widely expected to remain neutral and philosophical in nature.
The Nikkei is expected to trade within the range between the lower and upper Bollinger Band lines at −1σ and +1σ, and the downward trend in the RSI has prompted views that the short-term correction will continue. For intraday trading, the difficulty facing AI and semiconductor-related stocks has been highlighted, while buying interest is expected to focus on small- and mid-cap stocks with catalysts and themes.