The Jackson Hole symposium and NVIDIA earnings will draw attention as this week's two major events. The Nikkei fell sharply last week, with AI and semiconductor stocks supporting the market, although declines eased somewhat toward the end of the week.
The Nikkei ended last week at ¥66,016.36, down ¥2,697.44, or 3.9%, from the previous Friday. Although domestic long-term interest rates rose temporarily, movements in AI- and semiconductor-related stocks pushed the market higher. The market saw periods of continued sharp declines through the middle of the week, as concerns over the US economic outlook and rising long-term interest rates were viewed as negative factors.
In the latter half of the week, the market began to show resistance to further declines. The US Treasury Department's easing of the terms for Treasury purchases pushed long-term interest rates lower and led to a rebound in US equities. Movements in South Korean semiconductor stocks also supported the market, and buying on dips prevailed in the Tokyo market.
The Jackson Hole symposium will be held from 27 to 29 August, with Fed Chair Warsh's keynote speech scheduled for 28 August representing a particular focus. Although there are signs of weaker-than-expected inflation indicators and an economic slowdown, the Chair's comments on forward guidance could determine the market's response. In the United States, trends in long-term interest rates and employment and retail sales data are expected to continue influencing equity market movements.