Shoppers walk through the Miami Design District, home to many luxury fashion brand stores, on December 14, 2023 in Miami, Florida.
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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%. Both major indexes closed at new highs, with the Dow Jones closing above 43,000 points for the first time. this Nasdaq Index up 0.87%. Asia-Pacific stocks were mostly higher on Tuesday. Japanese Nikkei 225 Index It was up about 1%, having hit its highest intraday level in three months earlier in the day.
NVIDIA’s numbers are no illusion
NVIDIA Shares rose 2.4% to close at $138.07, setting a new record for the stock. The artificial intelligence chip maker’s previous high was $135.58, hit on June 18. SK hynix stock, British Semiconductor and Foxconn All rose at least 2%.
Proceed with caution
Federal Reserve Governor Christopher Waller said on Monday that the Fed may slow down the pace and scale of rate cuts at its 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
The strike by Boeing workers has now entered its second month. Already spent boeing company S&P Global estimates the amount exceeds $1 billion, and talks remain deadlocked. On Friday afternoon, Chief Executive Kelly Ortberg announced that Boeing would cut 17,000 jobs and would not deliver its wide-body 777X aircraft until 2026, six years later than originally planned.
(PRO) Make money from Naruto
Love shows like Naruto, Bleach, and One Piece? you are not alone. According to estimates from Grand View Research, the global animation market is expected to double from US$31.2 billion in 2023 to reach US$60.1 billion by 2030, Jefferies said. The investment bank recommends stocks that will benefit from the anime boom.
bottom line
Unlike troubled Boeing, The U.S. economy is struggling to get production of the 777X aircraft off the ground, and it looks like it may be flying longer than expected.
After a series of strong employment, income growth and inflation data, there are rumors that the US economy, which is believed 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, increased money supply and easier-than-expected monetary policies from major central banks.
Following the Consumer Price Index 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.
Powers said Bank of America believes that “a ‘non-landing’ scenario is actually bullish for stocks, in our view, as long as inflation doesn’t explode.”
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 stuck in a stuffy cabin and not being able to take off.
–CNBC’s Jeff Cox, Sarah Min, Lisa Kailai Han and Yun Li contributed to this article.
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