📆 Tuesday, August 6
► Investors remain nervous and are bracing themselves for continued high volatility after Monday's historic slump. Global equities fluctuate but Japan remains the clear epicenter of volatility. The Nikkei ended the trading day up 10.23% at 34,675.46 points, its biggest daily gain since October 2008 (in percentage terms) and the highest ever in terms of index points. The Topix ended the day up 9.3% at 2,434.21 points. In after-hours trading, however, both indices fell significantly again, with the Nikkei now standing at ~33,200.
► US equity futures gave back their initial gains and European equities fell into negative territory. We also see US Treasuries stabilizing as investors temper their expectations of a sharp rate cut by the Fed to support the obviously weakening US economy. After Monday's extreme losses, the VIX index (the fear index), which measures volatility, remains very high and means that sharp waves of selling could occur at any time. Palantir Technologies jumped as much as 13% in pre-market trading after the company raised its full-year guidance and pointed to continued demand for its AI software.
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