Introducing the innovative investment research assistant, experience it now. On Tuesday, August 20th, local time, major US stock indices experienced a decline across the board. Spot gold once again reached a historical high, climbing above $2,530 per ounce during the trading session. On the US stock market that day, JD.com saw a significant drop, closing down by 4.57%. After the market closed, JD.com continued to fall, with the decline exceeding 10% at one point. This week, the market will also be focusing on the Jackson Hole Central Bank Symposium, where Federal Reserve Chairman Jerome Powell will deliver a speech, potentially providing more clarity on the outlook for US interest rates.
Regarding overseas developments, according to CCTV News, the US Secret Service is investigating bomb threats received at various locations in downtown Chicago, the site of the Democratic National Convention, on August 20th, local time. Law enforcement is screening the affected areas and assessing the credibility of the threats.
Gold prices continue to set new historical highs, with institutions bullish up to $3,000. On August 20th, local time, the three major US stock indices closed slightly lower. Data from Wind shows that by the close, the Dow Jones Industrial Average fell by 0.15%, the S&P 500 index fell by 0.2%, and the Nasdaq fell by 0.33%. The Nasdaq and S&P 500 ended their eight-day winning streak. The market continues to focus on US stock earnings reports, Federal Reserve meeting minutes, and Powell’s speech at the Jackson Hole Central Bank Symposium.
Most large-cap US technology stocks rose. Apple increased by 0.24%, Amazon by 0.37%, Netflix by 1.45%, Google by 0.31%, Meta by -0.48%, and Microsoft by 0.77%. Energy stocks fell across the board. Exxon Mobil fell by 3.34%, Chevron by 1.44%, ConocoPhillips by 1.7%, Schlumberger by 2.91%, and Occidental Petroleum by 2.11%.
Most popular Chinese concept stocks fell. The NASDAQ Golden Dragon China Index fell by about 4%. New energy vehicle stocks fell across the board, with NIO falling by 5.28%, XPeng by 5.97%, and Li Auto by 5.4%.
In terms of commodities, international gold and silver prices soared, with spot gold hitting a new historical high above $2,530 during the US stock market’s pre-market session. International oil prices remained low, with Brent crude almost erasing this year’s gains, as concerns over Asian demand and ceasefire negotiations in the Middle East put pressure on oil prices. Citigroup analysts recently stated in a report that gold investor sentiment is expected to rise in the next three to six months, with gold prices projected to reach $3,000 per ounce by mid-2025.
Patrick Yip, Senior Director of Business Development at the US precious metals exchange, said at the end of last month that if geopolitical uncertainties persist, interest rates are lowered, or global central banks increase their purchases, gold prices could reach $3,000 as early as next year.
This year has seen gold prices rise by more than 20%. Industry insiders believe that the recent surge in gold and silver prices is primarily due to market expectations that US policymakers will soon begin to cut interest rates. Several Federal Reserve officials have recently hinted at imminent rate cuts, especially the hawkish committee member and Minneapolis Fed Chairman Kashkari, who stated that a weak job market opens the door for a rate cut in September.
Investors widely anticipate that the Federal Reserve will cut rates at the next meeting. This expectation undoubtedly increases the appeal of non-yielding gold in a low-interest-rate environment. Additionally, the purchasing power of global central banks and the demand for safe-haven assets triggered by tensions in the Middle East have provided strong support for the rise in gold prices.
After the US stock market closed, JD.
com’s stock plummeted, with the drop exceeding 10% at one point. Media reports suggest that a significant shareholder of JD.com plans to reduce their stake. As of now, no party involved has responded to this matter.
The Russian Ministry of Defense: Three Troops Groups Established in Belgorod and Other Regions According to a report by CCTV News, Russian Defense Minister Belousov held a meeting of the Border Region Military Security Issues Coordination Committee on the 20th.
Belousov stated that local administrators in Kursk, Belgorod, and Bryansk have established around-the-clock direct contact with the commanders of the Russian troops in these three locations and the leadership of the Russian Ministry of Defense. Belousov announced at the meeting the establishment of the Belgorod, Kursk, and Bryansk troops groups, which will be responsible for ‘protecting citizens and territory from drone attacks and other means of attack’, but he did not disclose the names of these troop commanders.