Traders work on the trading floor of the New York Stock Exchange on April 5, 2024.
Spencer Pratt | Getty Images News | Getty Images
This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
Rally to take a breather
U.S. stocks fell on Tuesday, weighed down by stocks Semiconductor stocks fall down 8.1% UnitedHealth. Asia Pacific Stock Markets Mostly lower Wednesday. Asian chip stocks such as Tokyo Electronics and TSMC, Retreat because of the news Disappointing forecasts from ASML and reports of possible U.S. export controls on artificial intelligence chips.
ASML plunges
Semiconductor equipment manufacturer shares ASML plunges 16% Downbeat earnings report. The Netherlands-based company believes 2025 net sales will be below the lower half of its previous forecast. ASML Although net sales exceeded expectations, net bookings for the September quarter fell short of expectations by €3 billion.
Better than ChatGPT
Alibaba Updated artificial intelligence translation toolWednesday, based on a model called Marco MT. Based on the assessment, the Chinese e-commerce giant said its products performed better than those from Google and DeepL Benchmarking tool FLoRes. Alibaba’s artificial intelligence translation tool supports 15 languages.
Bank beats expectations
Goldman Sachs, Bank of America and Citigroup Third-quarter earnings and revenue beat expectations. Goldman Sachs outperforms: Profits surged 45% Started a year ago. Compared to the same period last year, Bank of America experienced Net profit fell 12% and Citigroup’s Net profit fell 8.6%.
(PRO) Repositioning to slow rate cuts
A strong September jobs report and higher-than-expected inflation data mean the Fed is unlikely to repeat a sharp 50 basis point rate cut at its November meeting. This is How strategists can reposition themselves Given the changing expectations for rate cuts.
bottom line
Despite the market’s decline on Tuesday, there’s still a lot to like about the current situation.
crushed ASML’s 16% of diving and Bloomberg reports On potential export controls on AI chips, semiconductor stocks: NVIDIA and AMD fell 4.7% and 5.2% respectively. This gives VanEck Semiconductor ETF This is the worst day since September 3rd. Nasdaq Index down 1.01%.
this Dow Jones Industrial AverageIt closed above 43,000 points for the first time yesterday and fell 0.75% today, falling below the 42,000 point mark again. UnitedHealth An 8.1% drop dragged the Dow down.
at last, S&P 500 Index down 0.76%.
Still, investors are the most optimistic in four years, according to Bank of America’s October global fund manager survey. They’re also optimistic about the economy: 74% of investors believe the U.S. will avoid a recession.
Michael Hartnett, investment strategist at Bank of America, said expectations for further interest rate cuts by the Federal Reserve and expectations that Beijing will launch more stimulus measures to boost the economy are boosting investor sentiment.
Indeed, San Francisco Fed President Mary Daly, who served on the FOMC this year, noted that the central bank is “still a long way from where[interest rates]might stabilize.” That means “the real decision before us is how quickly we adjust to that level,” rather than whether to keep rates high. How strong has the recent economic data been?.
Another positive sign for the market was that the S&P and Dow hit all-time highs on Monday, but the Nasdaq is still a few percentage points away from its peak. “This subtle divergence is technical evidence that the market has moved away from the Big Seven,” wrote Craig Johnson, chief market technician at Piper Sandler.
–CNBC’s Jeff Cox, Samantha Subin, Yun Li, Lisa Kailai Han and Alex Harring contributed to this article.
