The VIX fell to a year-to-date low in the US market, while the S&P 500 crossed the 7,800 mark. Uncertainty remains over economic indicators and the direction of interest rates.
US equities maintained their upward trend despite mixed performance, with the S&P 500 reaching the 7,800 mark as the VIX, which set a new year-to-date low, remained at a low level. The Dow’s weekly advance was interrupted, while the Nasdaq pulled back. The Russell 2000 set a new record high.
According to data from the US Department of Labor, July CPI rose 0.1% month on month and 3.4% year on year, while core CPI rose 0.2% month on month and 2.6% year on year. Headline PPI was flat overall, while core PPI rose 4.2% year on year, a slowdown from the previous reading.
In terms of fund flows, US equity funds recorded net inflows of $2.58 billion over the latest one-week period. Inflows into US growth equity funds were particularly strong, suggesting that the wealth effect is gaining momentum.
In Japan, Nikkei 225 futures were trading around ¥68,720. NVIDIA’s earnings and developments at Jackson Hole will draw market attention next week, and price movements in AI and semiconductor stocks could become extreme after the earnings results are reviewed. A series of earnings announcements from major US retailers is scheduled for the coming week, along with the release of the FOMC minutes and Japan’s CPI data.
Developments in the Middle East, movements in the dollar-yen exchange rate and the Federal Reserve’s monetary policy decisions could affect market volatility. Upcoming events are likely to keep the risk of a sharp resurgence in volatility in focus.