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Strong U.S. economic data, coupled with Fed speeches that suggest a slower monetary policy easing cycle, weighed on risk assets as stocks fall for a third consecutive day, the dollar strengthens significantly, and core bond yields reverse their recent downward trend. Intel (mcap $159bn) was today’s notable single name mover with a 9% rally, as it is reportedly in early stage talks with Apple about a potential investment to support its recovery, according to media. Intel has now gained 70% this year.
Data: US Q2 GDP growth was revised sharply higher to 3.8% annualised, driven by stronger consumer spending and reduced imports, signalling resilient economic momentum. Weekly jobless claims fell to 218k, a slight improvement from the prior week. Durable goods orders rose 2.9% MoM, rebounding from a 2.7% decline in July, driven by a surge in transportation equipment orders.
Central Banks: Fed rate divide widens as Chicago Fed’s Goolsbee and Kansas City’s Schmid once again voiced caution over aggressive rate cuts amid inflation worries, while new governor Miran continues to advocate faster reductions. The implied probability of a 25bp Fed rate cut at the late‑October meeting fell from 92% yesterday to 85% today.
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