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Markets mixed, tech in focus
Nasdaq rebounds after losses; tech sector to see higher volatility with earnings reports this week.
Alphabet and Tesla earnings on Tuesday; focus on AI integration and Tesla's sales.
Evercore ISI predicts market correction due to weak August/September seasonality and political volatility.
China's economic slowdown continues to pressure oil prices.
Tech
The Nasdaq rebounded after significant losses last week, as rising expectations of interest rate cuts prompted investors to move from heavyweight technology stocks to more economically sensitive sectors. The tech-heavy index is expected to experience higher volatility with numerous tech companies reporting their earnings this week.
Earnings reports from key companies such as Alphabet and Tesla are scheduled for Tuesday. Investors will be keen to learn how these companies plan to integrate artificial intelligence into their products, while Tesla will also be under scrutiny as it contends with slowing sales.
Evercore calls for a correction
According to Evercore ISI (banking advisory firm), the market has entered a correction phase due to weak seasonality in August and September, combined with increased political volatility. This situation is reminiscent of the election years between Clinton and Dole, as well as Bush and Gore.
Oil
Oil prices slipped on Monday, as the unexpected interest rate cut by China, aimed at stimulating the world’s second-largest economy, had minimal effect on market sentiment.
WTI fell to as low as $77 while Brent touched lows of $80.
China's slower-than-expected economic growth of 4.7% in the second quarter raised concerns about the country's oil demand, continuing to pressure prices.
Prices also shrugged off China’s decision to lower its key short-term policy rate and benchmark lending rates to stimulate the economy.
