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New York Stock Exchange
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
Wall Street sinks
this Dow Jones Industrial Average and S&P 500 Index Suffered the biggest decline in the past two yearsGlobal stock markets were rocked as growing concerns about the U.S. economy rocked the market. Dow Jones plunges more than 1,000 points, S&P 500 and Nasdaq Index fell 3% and 3.4% respectively. Technology stocks take a beating Nvidia and Tesla fell 6.4% and 4.2% respectively. appleIts share price also fell 4.8% Berkshire Hathaway slashes stake. 10-Year Treasury Bond Yield Ministry of Finance Banknotes hit lowest since June 2023, while US oil prices The settlement price fell to its lowest level since February 5.
Google monopoly
federal judge rules Google hold a Illegal monopoly in search and the text advertising market. The ruling focused on Google’s exclusive search arrangements on Android and Apple devices, which the court said reinforced its dominant position. “Google is a monopolist and it has continued to defend its monopoly,” Judge Amit Mehta wrote in the ruling. The ruling stemmed from a joint antitrust lawsuit filed in 2020 by the Justice Department and several states.
Emergency interest rate cut?
Wharton Finance Professor Jeremy Siegel Urges the Fed to urgently cut interest rates by 75 basis points The federal funds rate follows Friday’s disappointing jobs data. He also recommended another 75 basis points rate cut at the September meeting. Siegel believes that the current federal funds rate “should be between 3.5% and 4%,” citing higher-than-expected unemployment and falling inflation as reasons for the cut. “How much do we raise the federal funds rate? Zero,” he said. “It makes absolutely no sense.”
The Fed will “solve this problem”
Chicago Fed President Austen Goolsbee said the central bank will respond to signs of economic weakness, saying Interest rates may be too restrictive now. “The Fed’s job is very simple: Maximize employment, stabilize prices and maintain financial stability. That’s what we’re going to do,” Goolsby told CNBC.scream box“We are very forward-looking about this. So if there is a situation like this on the through line and any component deteriorates, we will fix it.”
Asia rebounds
Japanese Stock market rebounds strongly After historic losses, Tuesday Nikkei 225 Index The Topix rose as much as 10%. this JPY It fell 0.86% against the U.S. dollar to 145.27, supporting export-oriented industries. Honda and chip manufacturers Renesas Electronics Increases of 14.7% and 19.1% respectively. Other Asia-Pacific markets have followed suit, recovering from recession fears sparked by weak U.S. jobs data. Korean Cospi Up 3.3%, Australia S&P/ASX 200 Index up 0.4%. Hong Kong’s Hang Seng Index The CSI 300 Index fell 0.1%, while the CSI 300 Index fell 0.1%.
(PRO)Goodbye hot money
after Nikkei 225 IndexIt’s the worst day since the Black Monday crash of 1987, and fund manager Richard Kaye believes the current market turmoil offers investment opportunities neglected sector Foreign investors exit certain positions.
bottom line
Monday’s massive sell-off was the result of a combination of factors, including arbitrage trade, U.S. employment data, Fears of a recession and concerns that the Federal Reserve will be slow to cut interest rates. global debacle include Huge $1 trillion tech loss. Despite the appeal emergency interest rate cut Not everyone believes in stabilizing the market, which could be a buying opportunity.
Brian Belski, chief equity strategist at BMO, believes Market adjustments are normal and healthy. He advised investors to pick high-quality technology stocks.
“You have received a gift here over the past few days from Amazon, Apple, Google, Microsoft,” Belsky said. “You absolutely, absolutely have to be exposed to these names.”
“Now, these names have clearly been too cocky in their valuations and now they’ve become humble. Everyone needs a little humility in life and we’re seeing that in these names. We think it’s short-term and reactionary of now chasing consumer staples and utilities.
James Demmert, chief information officer at Main Street Research, agreed that a “healthy correction” is “long overdue” given recent high valuations.
He added, “Market fundamentals have actually improved in recent weeks, especially with the Fed’s assurances that a rate cut is imminent.”
Chicago Fed President Austan Goolsby said the central bank would “fix things” if economic conditions worsened significantly, which could provide reassurance for nervous markets. Wall Street’s fear index spiked to 65 during Monday’s retracement, but has since fallen back to around 38.
If futures are any indication, calmer minds may prevail. Late Monday, S&P 500 futures were up 0.9% and Nasdaq 100 futures were up 1.2%.
“It’s too early to say the low has been reached,” Truist co-chief investment officer Keith Lerner wrote. “The damage has been done, and the repair process will likely take time. However, with the market’s threshold for positive surprises lowering, the risk/reward appears to be It’s gradually improving.”
— CNBC’s Hakyung Kim, John Melloy, Sarah Min, Jeff Cox, Michelle Fox, Tanaya Macheel, Rohan Goswami and Dylan Butts contributed to this report.
