Expected Price Jumps on Wall Street: Analysts and Chip Stocks in Focus

The recent market trend in the USA shows rising stock futures accompanied by gains in the dollar and government bond yields. Investors are eagerly anticipating upcoming data releases and a significant interest rate decision abroad. Yesterday's trading day ended with a gain, driven by strong increases in bank and transport stocks and a decline in bond yields. However, these gains were tempered by political uncertainty surrounding an upcoming U.S. presidential election. Today, attention is again focused on the bond markets. Key highlights include an important report on September retail sales and the weekly survey of new unemployment claims. Government bond yields have recently risen, with traders emphasizing the impact of the economic policy strategies of both presidential candidates that could increase national debt and, in the case of former President Donald Trump, reignite inflation concerns. The yield on the benchmark 10-year government bond rose by 3 basis points to 4.042%, while the yield-sensitive 2-year bonds stood at 3.953%. Simultaneously, the US dollar index recorded gains, while the euro fell to its lowest level in eleven weeks ahead of an important interest rate decision by the European Central Bank in Frankfurt. Analysts expect the ECB to make its first consecutive rate cut in over a decade, reducing by 25 basis points to 3.25% to address slowing growth and declining inflationary pressure. On Wall Street, solid gains are expected for the day, with a projected increase of 24 points in the S&P 500 and an appreciation of the Dow Jones Industrial Average. The tech-driven Nasdaq is particularly noted for an increase of 144 points, led by remarkable results from the chip manufacturer Taiwan Semiconductor. The company reported record profits and an optimistic growth forecast for 2024, primarily due to strong demand for AI technologies. Netflix is also in the spotlight, as the streaming giant will present its quarterly figures after the market closes. In Europe, stock prices rose ahead of the ECB decision, while Asian markets, particularly in China and Japan, recorded losses.