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Global markets have witnessed extreme turbulence this week
following July's dour jobs data that raised fears of a slowdown
in the United States, and a surge in yen after Bank of Japan's
surprise rate hike resulted in unwinding of currency carry
trades.
The volatility has since abated, with the CBOE Volatility Index
declining to 23.21 points, from a high of 65.73 at the start of
the week.
U.S. stocks jumped on Thursday after jobless claims last week
fell more than expected, soothing worries that the labor market
was rapidly deteriorating. Still, all major indexes were lower
for the week, with the Dow Jones down about 0.7%.
Fed policymakers' comments further supported the gains. They
said they were more confident that inflation is cooling enough
to allow interest-rate cuts ahead, and will take their cues on
the size and timing of those rate cuts from the economic data.
Money markets see a 54.5% chance the Fed will cut interest rates
in September by 50 basis points, and expect two more cuts by the
end of 2024, according to CME's FedWatch Tool.
Investors will now look ahead to next week's readings on the
consumer prices and retail sales for July for fresh evidence on
chances of a soft landing for the American economy.
At 5:20 a.m. ET, U.S. S&P 500 E-minis were up 22.25 points, or
0.42%, Nasdaq 100 E-minis were up 115.25 points, or 0.62%, Dow
E-minis were up 88 points, or 0.22%
Among individual stocks, Elf Beauty fell 8% as it forecast
annual sales and profit below estimates, and said it would raise
product prices if Republican presidential candidate Donald Trump
comes to power and hikes tariffs on imports from China.
SoundHound AI was up 2.5% after the artificial intelligence (AI)
voice provider beat Wall Street estimates for second-quarter
revenue and raised its full-year revenue forecast.
Take-Two Interactive Software climbed 5.6% as it expects net
bookings to grow in fiscal years 2026 and 2027, as the videogame
publisher gears up for the launch of its long-awaited "Grand
Theft Auto VI" next year.
(Reporting by Shubham Batra in Bengaluru; Editing by Shinjini
Ganguli)
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