The month of August is beginning to look like a replay of 2022 with equity markets feeling the squeeze from rising interest rates. The market’s exuberance surrounding artificial intelligence (AI) has taken a back seat to the reality of the highest long-term Treasury rates since 2007.1 The biggest beneficiary of the AI mania, Nvidia, releases earnings Wednesday which take on added significance in light of the recent stock market selloff.2
This week’s economic calendar is relatively light, but investors will be focused on the Federal Reserve’s (Fed) Jackson Hole Symposium starting Thursday.3 Fed Chair Jerome Powell is unlikely to deviate from his inflation-fighting mantra during his speech Friday; however, he may provide some clues whether the July rate hike is likely to mark the end of the current hiking cycle.
1Barron’s – 10-Year Bonds Yields Are Highest Since 2007. They Could Keep Going; 8/18/23
2Nasdaq – NVDA Earnings Date; as of 8/21/23
3MarketWatch – U.S. Economic Calendar; as of 8/21/23
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