The rebound of technology stocks cannot hide the market's caution, European stocks opened mixed, the euro rose slightly, and investors focused on the Jackson Hole meeting

The global financial market is currently in a tense wait-and-see state. Although the brief rebound of technology stocks provided a moment of respite, it failed to dispel the prevailing cautious sentiment that looms over the market. Investors are holding their breath for the upcoming Jackson Hole Global Central Bank Annual Meeting, hoping to find key clues regarding the interest rate path.

On the 21st, bargain hunting drove the Nasdaq 100 index to recover most of its losses, which in turn led to a moderate rise in Asian technology stocks. Major European stock markets opened mixed. The euro/dollar saw a slight uptick following the release of preliminary PMI data from France and Germany. The yield on Japan's 20-year government bonds rose to its highest level since 1999. Oil prices increased slightly.

• The German DAX 30 index opened down 0.11%. The UK FTSE 100 index opened up 0.08%. The French CAC 40 index opened down 0.09%. The Euro Stoxx 50 index opened down 0.13%.
• The Vietnamese VN index closed up 1.4%, at 1688 points.
• The US Dollar Index remained largely unchanged, currently at 98.24.
• The euro/dollar saw a slight uptick, reported at 1.165 dollars, recovering earlier losses following the release of preliminary PMI data from France and Germany.
• The yield on the 10-year US Treasury bond remained largely unchanged at 4.29%.
• The yield on Japan's 20-year government bonds rose to its highest level since 1999.
• Spot gold fell 0.3%, reported at 3339.86 dollars per ounce.
• West Texas Intermediate crude oil rose 0.7% to 63.2 dollars per barrel.
• Bitcoin fell 0.4% to 113904.11 dollars, while Ethereum fell 0.9% to 4317.59 dollars.

With the Jackson Hole meeting approaching, the market is filled with a wait-and-see sentiment

Ahead of the Jackson Hole annual meeting, the dominant tone in the market is one of "watching and waiting." Kyle Rodda, a senior market analyst at Capital.com in Melbourne, pointed out that "the stock market still has a bearish tendency." He believes that current stock prices have begun to reflect the risk of disappointment that the Jackson Hole meeting may bring, with the market questioning whether the Federal Reserve will pivot significantly dovish as the interest rate market suggests, or even whether it will pivot at all.

Despite the prevailing cautious sentiment, traders in the interest rate swap market are still betting on a high likelihood of the Federal Reserve cutting rates in September. This highlights the tension between market expectations and the central bank's difficult choices in the face of inflation.

Meanwhile, investors are also paying attention to internal dynamics within the Federal Reserve, including President Lisa Cook's statement that she will remain in her position, following calls for her resignation from President Trump due to mortgage fraud allegations.

Technology stocks under pressure, rotation prospects concerning

As the main engine of this round of market gains, technology stocks have recently struggled significantly. The Nasdaq 100 index has fallen for two consecutive trading days. An indicator measuring the so-called "seven giants" of technology stocks has also declined for the fourth consecutive day, marking the longest losing streak since mid-April Despite the rapid rise of technology stocks in the past few months, concerns about the speed and intensity of this increase have also emerged. Howard Marks, co-founder of Oaktree Capital Management, warned that the U.S. stock market is in the "early stages" of a bubble, although the key point for a correction has not yet arrived.

Matt Maley of Miller Tabak stated that sector rotation can only occur if technology stocks stabilize. He warned:

"If they fall, the only rotation we will see is a rotation into cash."