On July 15, 2024, in Manhattan, New York City, the United States, a man carried a Dior paper bag.
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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
Dow Jones index breaks through 43,000 points
on Monday, S&P 500 Index up 0.77% Dow Jones Industrial Average up 0.47%. two indices Close at new highThe Dow closed above 43,000 for the first time. this Nasdaq Index up 0.87%. European regional Stoxx 600 Index Add 0.53%. The European Central Bank holds a meeting on Thursday, during which Interest rate cut expected This year is the third time.
Nvidia’s numbers are no illusion
NVIDIA Shares rose 2.4% to close at $138.07. The stock hits a new record. The artificial intelligence chip maker’s previous high was $135.58, hit on June 18. Even more impressively, if we compare prices year-to-date in 2023, Nvidia’s stock price is up over 800%.
Proceed with caution
The Fed may Slow down the pace and scale of interest rate cuts Federal Reserve Board Governor Christopher Waller suggested on Monday that at the upcoming meeting. Waller said employment, inflation and economic growth data suggest “the economic slowdown may not be as deep as expected.”
fasten your seat belt
this Boeing workers strike It’s now into its second month. Already spent boeing company S&P Global estimates the amount exceeds $1 billion, and negotiations remain deadlocked. CEO Kelly Ortberg announced Friday afternoon Boeing to cut 17,000 jobsand will not deliver the wide-body 777X aircraft until 2026, six years later than originally planned.
(PRO) Small Cap Strategy
Market wisdom is that small caps will outperform large caps. watching S&P 500 Index and Russell 2000 However, developments over the past 15 years will shatter many perceptions. CNBC Pro’s Bob Pisani discusses how investors who still want to put money into small-cap stocks as a form of diversification can do so maximize their returns.
bottom line
Unlike troubled Boeing, Working hard to build the 777X aircraft From the ground, it looks like the U.S. economy may have a longer flight than expected.
After strong data employment, revenue growth and inflationthere are rumors that the US economy, which is considered to be on track for a soft landing, may not land at all.
A soft landing is a situation in which inflation falls below the Fed’s 2% target while economic growth and employment remain healthy. On the other hand, “non-landing” means that the economy continues to expand while inflation remains high.
refer to Second-quarter gross domestic revenue revised “These revisions suggest the economy is much stronger than previously thought and there are few signs that economic activity will slow significantly,” said Fed Governor Waller.
Echoing this sentiment, Deutsche Bank Macro strategist Henry Allen believes that inflation risks remain high due to rising commodity prices, an increase in the money supply and easier-than-expected monetary policies from major central banks.
Following the release of the CPI report, markets will be closely watching Thursday’s U.S. retail sales report for signs that the economy and inflation remain strong.
“If there is a blowout in retail sales this week, the argument that ‘it can’t be implemented’ will likely continue to strengthen,” said Ohsung Kwon, a director of Bank of America Securities, wrote in a report on Monday.
But even if the plane continues to be on cruise control, don’t panic.
“No matter what happens in the short term, my baseline still calls for a gradual reduction in policy rates over the next year,” Waller said.
Kwon said Bank of America believes that “in our view, as long as inflation doesn’t explode, the ‘non-landing’ scenario is actually bullish for the stock market.”
For now, investors can buckle up and enjoy the ride. It’s better to stay miles above the ground for a longer period of time than to have the misfortune of being trapped in a stuffy cabin and unable to take off.
–CNBC’s Jeff Cox, Sarah Min, Lisa Kailai Han and Yun Li contributed to this article.
