Economic Data Falls Short of Predictions, Reinforcing Argument for Federal Reserve Interest Rate Reduction

In today's global market recap, a mix of gains and losses were seen across major indices, with some notable movements in individual stocks.

DocuSign (DOCU) and Samsara (IOT) surged more than 6% and 10% respectively in pre-market trading, while Copart (CPRT) fell over 2%. The S&P 500 Index, Dow Jones Industrials Index, and Nasdaq 100 Index all experienced gains on Friday morning. The Nasdaq 100 was led by Micron Technology, which rose more than 4% to lead gainers in the index.

Amazon.com rose over 4% and was the top percentage gainer on the Dow after announcing several positive business updates. However, Lululemon Athletica (LULU) tumbled over 18% in pre-market trading.

In Asia, stock markets settled in the green. China's Shanghai Composite Index (SHCOMP) closed up 1.24%, and Japan's Nikkei 225 Stock Index (NIK) closed up 1.03%. Technology stocks in China led the rebound on Friday, with Broadcom (AVGO) climbing over 8% in pre-market trading.

U.S. rate futures have priced in a 99.4% probability of a 25 basis point rate cut at September's monetary policy meeting. This comes as economists, on average, forecast that August Nonfarm Payrolls will come in at 75K. However, the U.S. labor market saw a significant decrease in job creation in August, with only 22,000 nonfarm payrolls added and the unemployment rate rising to 4.3%.

In Europe, the Euro Stoxx 50 Index is up slightly this morning, while the German July Factory Orders unexpectedly fell -2.9% m/m. The Eurozone's GDP came in at +0.1% q/q and +1.5% y/y in the second quarter, weaker than expectations of +0.1% q/q and +1.4% y/y. The Eurozone's Employment Change arrived at +0.1% q/q and +0.6% y/y in the second quarter, weaker than expectations of +0.1% q/q and +0.7% y/y.

Regulators in China urged more measures to boost sector revenue, while U.K. Retail Sales rose +0.6% m/m and +1.1% y/y in July, with Core Retail Sales rising +0.5% m/m and +1.3% y/y. Japanese Household Spending also rose for the third consecutive month, and real wages rose for the first time in seven months in July.

Notable earnings releases today include ABM Industries, Ermenegildo Zegna NV, and Children's Place. Goldman Sachs announced an investment of up to $1 billion in the asset manager T. Rowe Price Group and plans to form partnerships to sell private market products to retail investors. T. Rowe Price Group was the top percentage gainer on the S&P 500 after this announcement.

In the tech sector, Solar stocks in China rallied after a leading polysilicon producer said the industry had reached a bottom.

Finally, the Japanese July Leading Index stood at 105.9. Despite the mixed results across the global markets, investors will be closely watching the upcoming economic data and earnings reports for further indications of market trends.

Economic Data Falls Short of Predictions, Reinforcing Argument for Federal Reserve Interest Rate Reduction