# Markets are Reacting to Powell’s Valuation Concerns as Economic Data Surprises and Stocks Retreat
**Note**: We are generating this analysis during the US market session, which is open, while the European session closed. Event times are in US Eastern Time.
## Major News
Markets are reacting to a mix of economic signals and corporate developments today. Federal Reserve Chair Jerome Powell is stating that stock prices appear “fairly highly valued,” which is contributing to a modest pullback in major indices. The S&P 500 is currently at 6,658.78, down 0.50%, while the Dow Jones is slightly lower at 46,290.49, down 0.16%. The Nasdaq 100 is experiencing a more pronounced decline, trading at 24,596.03, down 0.63%. This sentiment is compounded by concerns over the sustainability of the AI-driven rally, particularly in tech stocks like Nvidia.
In the commodities market, crude oil is showing strength, trading at $63.26, up 2.20%, as global demand forecasts remain optimistic. Gold is also gaining traction, with December contracts priced at $3,813.00, reflecting a 0.85% increase. On the currency front, the EUR/USD is slightly up at 1.1815, gaining 0.08%, indicating a stable outlook for the euro against the dollar.
In corporate news, Eli Lilly is making headlines with its announcement to build a $6.5 billion manufacturing facility in Texas, aimed at boosting production capacity for its obesity pill and maintaining its competitive edge in the GLP-1 market. This strategic move is likely to enhance investor confidence in the company, although specific stock price impacts are yet to be determined.
On the media front, Nexstar Media Group is preempting the return of “Jimmy Kimmel Live!” alongside Sinclair’s ABC-affiliate stations, which may have implications for advertising revenues and viewer engagement.
The OECD is lifting its U.S. and global growth forecasts, noting that many economies are displaying surprising resilience this year. This positive outlook could provide some support to market sentiment despite Powell’s caution regarding stock valuations.
In the cryptocurrency space, Morgan Stanley is partnering with Zerohash to offer crypto trading to E*Trade clients beginning next year. This move signals growing institutional interest in digital currencies, although Bitcoin is currently trading down at $111,964.68, reflecting a 0.72% decline.
Overall, market sentiment is mixed as investors digest Powell’s remarks and the broader economic landscape, leading to a cautious approach in trading. The tech sector is particularly under scrutiny as the AI trade appears to be losing momentum, prompting a reevaluation of valuations across the board.
## Key Assets Performance
| Asset | Price | Daily Change (%) |
|---|---|---|
| S&P 500 | 6658.78 | -0.50 |
| Dow Jones | 46290.49 | -0.16 |
| Nasdaq 100 | 24596.03 | -0.63 |
| Euro Stoxx 50 | 5479.85 | 0.62 |
| DAX 40 | 23630.74 | 0.11 |
| EUR/USD | 1.18 | 0.08 |
| Crude Oil | 63.26 | 2.20 |
| Gold (December Contract) | 3813.00 | 0.85 |
| BTC/USD | 111964.68 | -0.72 |
## Economic Events Summary
Today, financial markets are responding to a series of significant economic indicators that are shaping investor sentiment. The Singapore core CPI and CPI figures for August have just been released, showing a core inflation rate of 0.3%, falling short of the expected 0.4%, while the overall CPI also misses forecasts at 0.5% against a 0.6% expectation. This underperformance is likely prompting a reassessment of monetary policy expectations for the Singapore dollar.
In Europe, the HCOB Manufacturing and Services PMIs for France and Germany are showing mixed results. France’s Manufacturing PMI is at 48.1, significantly below the forecast of 50.2, indicating contraction. Conversely, Germany’s Services PMI surprises positively at 52.5, above the expected 49.5, which may provide some support to the euro.
The Eurozone’s Manufacturing PMI is also disappointing at 49.5, below the forecast of 50.7, while the Composite PMI shows slight improvement at 51.2. These figures are likely to influence the European Central Bank’s future monetary policy discussions.
In the UK, the S&P Global Composite PMI is coming in at 51.0, below expectations, which may raise concerns about economic growth. The current account deficit in the U.S. is reported at -251.3 billion, better than the anticipated -259 billion, which may provide temporary support to the dollar.
As the day progresses, market participants are closely monitoring speeches from
