New York stocks rise on chip rally; Nasdaq strong as oil and gold fall

U.S. stock futures opened the session broadly higher. Dow futures rose 0.43% and S&P 500 futures gained 0.36%.

Nasdaq 100 futures climbed 0.73%, showing strength, while Russell 2000 futures also rose by more than 0.5%.

Prices of 30-year Treasuries rose, and 10-year Treasury prices gained 0.2%.

This is read as a stabilizing trend in the market as yields fell.

Nvidia rose 1.3%, Intel 3.1%, and TSMC 1.4%.

Chip stocks at home and abroad also rose together, with SK Hynix up 3% and Micron up 2.05%. The rally was concentrated in semiconductor and AI hardware stocks rather than tech stocks broadly.

West Texas Intermediate (WTI) crude dropped 3.45%.

As a result, Exxon Mobil fell 1.61% and Chevron 1.27%.

The July Personal Consumption Expenditures (PCE) price index is due tomorrow morning.

Nvidia's earnings report is also due tomorrow, and Fed Chair Kevin Warsh's Jackson Hole speech is scheduled for Friday.

U.S. national debt has surpassed $40 trillion, deepening concern over fiscal health. This anxiety has led to a so-called 'debasement trade,' in which investors position for a falling dollar.

As the market loses confidence in government Treasury buyback measures, investors are turning to alternative assets such as gold and bitcoin as hedges against a weaker dollar.

Bank of America also maintained a positive view on chip stocks overall.

J.P. Morgan kept its overweight rating on SpaceX, emphasizing the long-term growth potential of the space industry. Major investment banks are thus offering investment views based on individual companies' growth potential and industry trends.

AMD's stock rose on the strong buy rating and target price increase. Technological innovation in the semiconductor industry and rising demand for artificial intelligence (AI) are analyzed as the main factors supporting this positive outlook.

Steel negotiations between the United States and Canada ultimately broke down. The U.S. demanded tougher conditions on the tariff exemption centered on small vehicles, while the Canadian government judged the U.S. demands excessive.

Prime Minister Trudeau worried that these demands could hurt jobs and tax revenue at GM and Ford plants in Canada, and decided to refuse the talks.

This is because there have been past cases where negotiated terms shifted under pressure from U.S. industry.

This suggests the need for the Korean government to approach trade talks with the U.S. carefully down to the details and prepare for unexpected variables.

These targets were named as involved in procuring nuclear and missile equipment for Iran and in transporting crude oil.

In particular, Hong Kong's Sweet Ocean and Shenzhen, China's Huamei Logistics were included on the sanctions list.

The U.S. did not sanction all Iranian and Chinese companies; it selected 60 firms directly involved in nuclear and missile development and crude oil transport.

This is read as the U.S. holding back a decisive blow against Iran while leaving room for strategy, by still excluding major Chinese banks and state-owned refiners from sanctions.

The U.S. Iran sanctions are also read as a strategic message aimed at China. Washington is pressing Chinese banks to choose between halting dealings with Iran or remaining within the dollar financial system.

This forces China into a choice between its relationship with Iran and its access to the international financial system, and is interpreted as a strategy to raise pressure on China.

Fed Chair Kevin Warsh has said since taking office that the Fed will reduce the practice of signaling the direction of interest rates in advance. However, he has been criticized for insufficient explanation at the July FOMC press conference, which increased market uncertainty.

Warsh's Jackson Hole speech is seen as an important test of whether his 'less talk' communication approach can meet market expectations while restoring the Fed's credibility.

The Fed's lack of communication added uncertainty to the market and led to a surge in interest rates. After the July FOMC press conference, the 30-year Treasury yield hit its highest level since 2007.

Warsh rejected this as an overreaction by the market, but Treasury yields in Europe and Japan rose together with those in the U.S., showing a broad impact.

Concern has been raised that the Treasury's recent Treasury buyback measures could blur the boundary between the roles of the Treasury and the Fed. Treasury bond purchases can directly affect short-term rates, creating the possibility of conflict with the Fed's monetary policy.

This could cause confusion over the division of roles between the two institutions responsible for monetary and fiscal policy, and it is controversial because it may reduce the market's predictability.

Dow futures rose 0.11% and S&P 500 futures gained 0.37%.

In particular, Nasdaq 100 futures maintained a 0.84% gain, leading the tech-centered rally.

Commodity and energy indicators all weakened. Gold fell 0.53% and silver fell 1.3%.

Crude oil prices also continued to slide by about 3%, similar to earlier levels.

Nvidia's results will be an important indicator for the direction of chip and tech stocks broadly.

The PCE price index is also expected to have a significant effect on the Federal Reserve's interest rate decision at its September Federal Open Market Committee (FOMC) meeting.