Weekly Market Outlook: Expecting S&P 500 to Retest Record

Week Ahead: 2 Sept, 2024

While the Destined One was busy recovering relics in the blockbuster game Black Myth: Wukong, the markets continued their rally. The Dow Jones Industrial Average (DJIA) closed the month at a record high of 41,335.05. In Asia, the Hang Seng Index gained 1.14%, and the Straits Times Index added 1.13% for the week.

The overall U.S. economic narrative continues to suggest a 25 basis points (bps) cut in September, with some possibility of a 50 bps cut. As mentioned previously, we intend to continue trading the rally until key data or technical indicators suggest otherwise.

From the performance of various indices, we can observe that stocks outside the Mag7 are experiencing broader catch-up, which also suggests this is where we should look for our trading setups or alpha.

We expect both the S&P 500 and STI to retest their respective highs, which are not too far away. USD weakness remains as one of the key catalyst fueling the performance of Asian equities. Note that U.S. markets will be closed on Monday.

Headlines for the week:

- Corp Earnings (Broadcom, Chinese Banks)

- US Aug Jobs Report, ISM Mfg

- China Aug PMI

- SG Aug PMI, Retail Sales

Disclaimers apply

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