On October 23, 2024, professional traders worked in the hall of the New York Stock Exchange (NYSE) in New York City, the United States.
Brendan McDermid | Reuters
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
Yields continue to weigh on stocks
US stocks plunge on wednesday as Treasury bond yields continue to rise. European regional Stoke 600 index Down 0.3%. In addition, ECB policymakers No agreement on requirements Cut interest rates by half a percentage point at the December meeting.
Tesla beats profit expectations
Tesla Shares rose 12% in after-hours trading after the company’s third-quarter earnings were released. Exceeded Wall Street expectations. However, Tesla’s revenue increased by 8% year-on-year during the same period, slightly lower than expected.
IBM revenue falls short of expectations
IBM third quarter revenue Didn’t meet expectations. During the period, its revenue increased 1.5% annually, mainly due to revenue of $6.52 billion from IBM’s software division that exceeded market expectations. IBM believes overall fourth-quarter revenue will grow by about the same amount. Its shares fell about 3% in after-hours trading.
“It’s time to be cautious”
Norges Bank Investment Management, which manages Norway’s sovereign wealth fund, said current geopolitical and stock market conditions need to exercise caution. “This is a time to be a little more cautious, and I think there is more downside risk than upside risk to the stock market,” Trond Grande, deputy chief executive of NBIM, told CNBC on Tuesday.
(PRO) 2025 S&P Target 6,600?
this S&P 500 Index Stocks have been soaring in 2024. Piper Sandler Chief Marketing Technician. But he thinks the S&P could rise further Hit the 6,600 level next yearabout 13.8% higher than the S&P’s closing price on Wednesday.
bottom line
Like an unpopular former partner who shows up at the most inopportune times and refuses to leave, Treasury yields have returned and taken center stage.
Yields have been rising over the past month 10-Year Treasury Bond Yields rose about four basis points to 4.25% on Wednesday. During U.S. trading hours, the 10-year Treasury yield hit 4.26%, the highest level since July 26.
Even if the Fed Interest rates cut by 50 basis points at the September meeting and stated that it would further reduce the interest rate for the same amount By the end of the year.
The market appears to have shifted from worries about a weak U.S. economy to worries about the U.S. economy being too strong.
The Federal Reserve’s “beige book“There has been a positive impact on the economy. Most regions in the U.S. “report lower worker turnover and layoffs remain limited,” while “contacts are more optimistic about the long-term outlook,” the report said.
Therefore, it is not inconceivable that a strong economy might prompt the Federal Reserve to slow down or even stop cutting interest rates.
“To me, it’s all about the impact of a rate hike,” said Brent Schutte, chief investment officer at Northwestern Mutual Wealth Management. “The market is re-pricing the possibility of a significant rate cut from the Fed.”
Stocks plunged as yields rebounded. this S&P 500 Index Down 0.92% Dow Jones Industrial Average Down 0.96% – the worst day in more than a month – Nasdaq Index down 1.6%.
But Paul Hickey, co-founder of Bespoke Investing Group, said investors need not panic. “It’s a tough day, but these days happen,” Hickey told CNBC. Wells Fargo sees stocks May rebound in 2025 Despite the near-term uncertainty.
While rising U.S. Treasury yields appear to be holding back stock market gains, like most uninvited visitors, they will likely retreat in time, and if profits remain strong, the market should resume its upward trend.
—CNBC’s Jeff Cox, Lisa Kailai Han, Pia Singh and Brian Evans contributed to this report.
