Market Report Aug 20 2023

Over the past week, the markets displayed mixed sentiment. On the first trading day, bullish indicators were observed around the 50-day moving average, suggesting potential buying opportunities. However, the momentum shifted on Tuesday with a weaker session on low volume. Wednesday continued this trend, with a brief spike suggesting temporary strength before continuing the downward trajectory. By Friday, the S&P 500 touched an 8-week low while the NASDAQ fell to a 10-week low, signaling a bearish sentiment throughout the week, consistent with prior expectations.

Key events to monitor this week include home sales data and remarks from the Fed Chairman at the Jackson Hole Symposium.

The stock XPEV, notable for some investors, displayed price action descending towards its 50-day moving average.

In the electric vehicle sector, Tesla is making strategic price cuts, notably a reduction of roughly $2,000 in China for the Model Y and $10,000 for Models S and X in the U.S. Although initial reactions suggest a sales push, there might be a broader strategy involved. A leak from Tesla's Irish website hinted at an upcoming Model 3 with improved mileage, possibly aligning with the price adjustments.

On the global expenditure front, Gartner's research indicates a projected growth of 4.3% this year, potentially reaching $4.7 trillion. Conversely, U.S. credit card debt has reached a concerning milestone of $1 trillion, reflecting potential economic challenges, likely exacerbated by inflation.

Lastly, concerning global financial health, Britain now bears the highest debt burden among developed nations. This arrives at a precarious time as major credit rating firms, including Moody's and S&P, prepare for their evaluations. This, coupled with Fitch's recent downgrade of the U.S., underscores the need for investors to watch these evaluations and their broader market implications closely.

Anne Chapman

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