Raindrops cling to a Wall Street sign outside the New York Stock Exchange in Manhattan, New York City, U. S. , on October 26, 2020. REUTERS/Mike Segar/File Photo Obtaining Licensing Rights An outlook on U. S. and global markets from Mike Dolan today signifies that a combination of concerning August business reports from Europe and market speculation regarding chipmaker Nvidia's earnings later in the day have set world stocks on a course for a third consecutive daily gain for the first time this month. Although the early flash readings of monthly surveys indicate a worrisome second month of eurozone business contraction, this news has actually helped alleviate some pressure on restless bond markets by indicating a cooling of global demand. Similar surveys for the U. S. are expected later. As a result, eurozone government bond yields and the euro have fallen as traders anticipate a possible pause in the European Central Bank's interest rate hike campaign, with money markets now pricing less than a 50% chance of further tightening. Additionally, with an awkward U. S. 20-year bond auction scheduled for today, the downbeat news from the eurozone, along with disappointing British surveys, has contributed to a decline in long-term U. S. bond yields during early trading. Ten-year U. S. Treasury yields have fallen to 4. 25%, over 10 basis points below the 16-year high reached on Tuesday. The 30-year yield has dropped over 12 basis points from its 12-year highs earlier this week, and even two-year yields have slipped below 5%. The U. S. dollar (DXY) has reached its highest level since early June, putting pressure on both the euro and sterling. With the Federal Reserve's annual Jackson Hole conference set to begin on Thursday, the latest U. S. economic figures suggest that the central bank need not be too concerned about a resurgence in economic activity. Existing home sales have dropped to a six-month low in July, and new home sales figures are expected later today. The Philadelphia Fed's August service sector survey also indicates a significant decrease in activity.

Furthermore, benchmark revisions to U. S. payrolls estimates for the year through March 2023 are scheduled to be released later today, and it is widely anticipated that these revisions will reveal that the labor market is not as tight as previously assumed. Taking all of this into account, along with the retreat in bond yields, stock investors are hopeful that Nvidia's post-bell earnings report today can revive the artificial intelligence craze that drove tech stocks to surge earlier this year. Nvidia shares have tripled in 2023, and the company's increase so far this year is leading gains among the "Magnificent Seven" group of megacaps, including Apple and Microsoft. This group's collective rise has accounted for approximately two-thirds of the S&P 500's increase through July. The focus on tech stocks will need to compensate for another decline in bank stocks, many of which suffered credit rating downgrades on Tuesday. The early rally on Wall Street fizzled out by close of trading on Tuesday, but futures are pointing higher again today ahead of the opening. European and Japanese shares are also showing smart gains, although mainland Chinese stocks (CSI300) continue to underperform, dropping more than 1% once again. Chinese stocks are now down almost 10% year-to-date. Key events to watch for today include flash August business surveys from the United States and around the world, U. S. new home sales numbers for July, and U. S. benchmark payroll revisions for 2023. U. S. corporate earnings to be released today include Nvidia, Analog Devices, NetApp, Autodesk, Advance Auto Parts, and Bath & Body Works. The opinions expressed in this piece are those of the author and do not reflect the views of Reuters News, which, in accordance with the Trust Principles, is committed to integrity, independence, and impartiality. United Parcel Service workers in the U. S. have ratified a new five-year contract, as announced by the Teamsters union on Tuesday. This development eliminates the possibility of a potential strike that could have jeopardized timely Christmas deliveries and caused shipping costs to surge.