Market Overview

Stocks related to artificial intelligence (AI) and certain other tech behemoths formed a separate group of issuers, which are performing a rebound this week. And not even all potential candidates participated in that drastic leap. For the most part, a narrow band of market heroes like Microsoft and Tesla. On the contrary, those giants who have recently taken off well due to successful quarterly reports, like Google and Amazon, joined the general correction of Wall Street making the S&P 500 broad barometer testing its lower levels between 4,350 and 4,400.

Both of them, as well as Apple, moved into green territory only a little later, when a group of market favourites pulled out the composite indexes higher. It could be said that Wall Street managed to ride NVIDIA's surge by more than 10% in a couple of days, from summer lows to its nearly all-time highs, ahead of the hyping chipmaker's earnings late Wednesday. An AI-boosted growth contributed much to recovery on Advanced Micro Devices (AMD), as well as Microsoft and even Tesla, as its CEOs recently reiterated the EV maker is using AI much with its upgraded full self-driving system. 

Meanwhile, the banking sector has the worst performance. Energy companies are struggling as their stocks are supported by relatively high oil prices facilitated by production cuts by Saudi Arabia and other oil exporters, which rises costs for many businesses all over the world. Shares prices growth for many firms in June and July turned into a steady downward trend because of a strangely mixed combination of too low earnings expectations before the reporting season and then moderately better than feared, but still weak results in fact, compared to 2022.

These examples mark differentiation of popular assets related to the crowd's attitude in the conditions of strong psychological pressure of global headwinds. Uncertainty about the nearest future is supported by an economic slowdown in China, rumours of credit rating revisions for large American banks and blur expectations from Jackson Hole summit where policymakers from developed nations may decide the future path of monetary policies. The Federal Reserve’s (Fed) Chair Jerome Powell is the most expected speaker. Investors want clarity on the future path of interest rates, but there are many reasons ground to believe that the head of the U.S. regulator may lay out carpet only for extended periods of hawkish monetary policy, which may badly hit the sentiment on stocks. 

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