U.S. stocks rebounded on 13 August before retreating on 14 August. Trends in U.S. economic and inflation data, along with uncertainty over the situation in the Middle East, drove market movements. Japanese stocks rebounded sharply over the two days and are continuing to recover despite remaining near their highs. Developments related to SpaceX and the schedule for the release of IPO lock-ups also drew market attention.
In the U.S. equity market, the NY Dow rebounded by $69 from the previous day on 13 August, supported by a decline in the July PPI and gains in AI-related stocks. On 14 August, the NY Dow fell by approximately 0.2% on weak consumption-related data and uncertainty over the situation in the Middle East, while higher oil prices also weighed on the equity market.
Data points concerning U.S. consumption included a 0.6% month-on-month decline in July retail sales and a University of Michigan consumer sentiment index below market expectations. Slower CPI and PPI growth partially reduced expectations of further rate hikes, but persistently high oil prices and developments in the situation involving Iran are expected to influence market movements going forward.
Regarding SpaceX, the release of the lock-up for its IPO was reportedly scheduled for 20 August, and the stock price remained around its offering price. The development was said to have the potential to affect overall equity market trends.
In the Chinese market, the Shanghai Composite was down approximately 0.5% on 13 August and moved slightly higher on 14 August. Expectations that the central bank would maintain its accommodative stance remained a focus for the market, while hopes for measures to stimulate domestic demand provided support.
In the Japanese market, the Nikkei Average rebounded sharply, rising ¥784 on 13 August and ¥405 on 14 August. Buying in AI- and semiconductor-related stocks led the market, and the TOPIX set a record high for the second consecutive day. The Nikkei Average's recovery is considered to have reached a critical juncture.