On Thursday, November 14, 2024, Federal Reserve Chairman Jerome Powell gave a speech at Fair Park Concert Hall in Dallas, Texas, USA.
Shelby Tauber | Bloomberg | 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
Post-election rallies subside
U.S. stocks fall on Thursday, get ready Ending the week lower. In particular, the so-called “Trump deal” is failing. Break away from Wall Street, Asia Pacific stocks Most rose on Friday. Japanese Nikkei 225 Index News pointed out that China’s economy expanded in the third quarter, and the CSI 300 index fell nearly 1% after reports that China’s real estate problems were worsening.
Don’t rush to cut
Fed Chairman Powell says the Fed doesn’t need to “rush to lower interest rates” Thursday said. Powell noted the economy remains strong, with growth in October Disappointing jobs report Mainly due to hurricanes and worker strikes. Powell’s slightly hawkish tone dampened market enthusiasm and reduced traders’ expectations for a rate cut in December.
Japan’s GDP growth in third quarter
Japanese economy Growth in the third quarter was 0.3%compared to a year ago. GDP growth reversed the 1.1% contraction in the previous quarter and ended two consecutive quarters of annual decline. On a quarterly basis, GDP grew 0.2%, in line with expectations in a Reuters poll but lower than the 0.5% increase in the second quarter.
China retail sales rebound
Total retail sales of consumer goods in China in October Annual increase of 4.8%reports the National Bureau of Statistics. That was higher than the 3.8% expected in a Reuters poll and up from 3.2% in September. However, Wind Information data shows that real estate investment fell by 10.3% annually from January to October, the largest decline in the past two years.
(PRO) Nvidia to promote little-known Korean company
NVIDIA The rapid rise has boosted many related chip makers. As Nvidia transitions to its next generation of AI chips, A little-known Korean company is becoming so critical to Nvidia’s production process that Wall Street banks Citibank That gives the company 40% potential upside over the next 12 months.
bottom line
After enjoying a post-election rally, investors are once again turning their attention to issues such as inflation and interest rates.
Although consumer and wholesale price increases in October were in line with expectations, they rebounded from the previous month, indicating that there are still some hot spots in the economy.
Still, the deflationary process, in which prices slow down, is not linear. A month’s worth of price increases doesn’t necessarily mean inflation is back.
As Fed Chairman Jerome Powell noted, the effort to get inflation to the central bank’s “long-run goal of 2 percent” is likely to be “a bumpy road at times.” Just as deflation does not move in a straight line, the trajectory of interest rates does not move in a straight line. Powell added that the Fed does not need to “rush to lower interest rates” because “we are currently seeing a strong economy.”
The hawkish nature of Powell’s comments significantly reduced traders’ bets on a rate cut in December. The probability that the Fed will cut interest rates by 25 basis points at its December meeting is now 62.6%, compared with 82.5% earlier in the day. CME FedWatch Tool.
BlackRock Rick Rieder believes the Fed will still cut interest rates by 25 basis points in December. As for next year’s cuts, however, “the pace of the cuts and whether they really need to be cut is really in question,” Reid told CNBC.
Those concerns overshadowed post-election euphoria, sending stocks lower. this S&P 500 Index down 0.6%, Dow Jones Industrial Average down 0.47%, Nasdaq Index down 0.64%. All indexes are expected to end the week lower.
The market generally expects the U.S. economy to achieve a soft landing. For investors who rode the post-election rally and now have hit rock bottom, their landing does feel bumpy.
—CNBC’s Jeff Cox, Brian Evans and Sarah Min contributed to this report.
