Dow Jones rises 700 points, gold hits record high, HSBC has new CEO | Wilnesh News

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.

Dow Jones hits new high
this Dow Jones Industrial Average Increased by more than 700 points Prices closed at another new high as the bullish market appears to be expanding. Mainly small stocks Russell 2000 It rose for a fifth consecutive day, rising 3.5%. this S&P 500 Index rose 0.64%, while the Nasdaq edged up 0.2% as technology stocks were excluded from the gains. 10-Year Treasury Bond Yield Ministry of Finance slipped and US oil prices Also refused.

100% certainty
Traders are now convinced Fed to cut interest rates in September, the probability of a quarter percentage point reduction is 93.3%, and the probability of a half percentage point reduction is 6.7%. This certainty comes from the latest Consumer Price Index update, which showed annual inflation slowing to 3%, the lowest level in three years. A month ago, the probability of a rate cut in September was only about 70%.

Gold hits new highs
gold price Surge to record on Wednesday as rate cut expectations rise in September. Investors have turned to gold amid weak inflation data and dovish comments from Federal Reserve Chairman Jerome Powell, raising the possibility of a rate cut this year. spot gold price Gold prices rose 0.5% to $2,482.29 an ounce, London Stock Exchange data showed, hitting a record high. gold futures It climbed to $2,478.4 an ounce. Gold prices have risen this year as central banks bought the precious metal as geopolitical risks increased interest in safe-haven assets. You can read more here Ray Dalio, founder of Bridgewater Associates, the world’s largest hedge fund, said: Gold’s appeal explained.

new CEO
global lender HSBC have Appoints Georges Elhedery third CEO in less than eight years. Elhedery, currently chief financial officer, will replace outgoing chief executive Noel Quinn on September 2. Unexpected resignation in April For more than five years, he has led the London-based bank’s response to the pandemic and trade tensions between China and the West. Quinn has been with the bank for 37 years and was named interim chief executive in 2019.

Taiwan falls due to Trump’s remarks
this Taiwan Weighted Index Former President Trump said stock price fell 1% Taiwan should pay for its own national defense. shares British Semiconductor down 2.3%. Elsewhere in the Asia-Pacific region, Japan is an export powerhouse Nikkei 225 Index refuse to Report The authorities spent 6 trillion yen ($37.9 billion) to support JPY. Australian S&P/ASX 200 Index rose 0.73% to hit a record high, while South Korea Cospi Slipped. Hong Kong’s Hang Seng Index Mainland China’s CSI 300 index was little changed.

(PRO) Top AI Selection
Bank of America reiterates buy rating on a leading chipmaker, citing Occupy a strong position in the artificial intelligence market. Analyst Vivek Arya estimates that artificial intelligence will create a $30 billion to $50 billion opportunity for companies in the next three to five years, driven by strong demand from cloud providers and consumer-facing AI platforms.

Small-cap stocks surge, Russell 2000 Index Reaching highest level since January 2022 and rose for a rare five consecutive days. The index is up nearly 12% this month, while the S&P 500 is up 4% and the Nasdaq is up a similar amount. The rally was fueled by the prospect of lower interest rates as inflation approaches the Fed’s target, potentially broadening the economic recovery.

This may come as a relief to seasoned investors who were worried about the market’s reliance on a handful of tech stocks during the 21-month bull market.

David Kostin, chief U.S. equity strategist at Goldman Sachs, told CNBC’s “Squawk on the Street” that he expected “will be expanded over the next six monthsBecause “the market itself as an index is up 20% year to date; the typical S&P 500 stock index is up 7%. So a lot of that gap is driven by five major companies.”

Kostin also explained why rate cuts may benefit small-cap companies: “The Fed is expected to start cutting interest rates in September, and it may start cutting interest rates in December. Historically, this has been good for small-cap companies, basically , 30% of their borrowings are in floating rate, so lower interest rates, lower interest payments, higher earnings expectations would be an area where you specifically want to consider the Russell 2000 or expand the scope.

Christopher Harvey, head of equity strategy at Wells Fargo Securities, is more skeptical about the rotation. “We are not against rotation“, Harvey told CNBC on Monday. “We’re just waiting.

“Until we start to see that Nike, Delta, Walgreens are not going to fall because of the bad news — we don’t believe in the rotation. We want people to believe that the numbers are going to be higher and things are going to get better.” But now. The bad news for us is bad news, which tells us that this rotation may not be sustainable.

We may be at that turning point. Six major banks—— Bank of America, JPMorgan, FuGuo bank, Citigroup, Goldman Sachs and Morgan Stanley -‘s revenue and profits beat expectations, sending shares higher after being ignored during the bull market. when not loved Regional banks struggle in post-pandemic rate hike cycleCNBC’s Jesse Pound writes that even if profits aren’t huge in the second quarter, their stock could rise further.

—CNBC’s Brian Evans, Alex Harring, Lisa Kailai Han, Yun Li, Jesse Pound, Sarah Min, Karen Gilchrist, John Melloy, Hugh Son, Charmaine Jacob, Lee Ying Shan and Lim Hui Jie contributed to this report.