On February 1, 2023, a man bought fruit at a grocery store in New York City.
Leonardo Muñoz | Corbis News | 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
Stock market rebounds
wall street Close higher on Tuesday S&P 500 Index Set a new record, up 1.1%.blue chip stocks Dow Chemical Earned more than 200 points at the same time Nasdaq Stocks rose 1.5% as US February inflation data came in slightly higher than expected.
Record shareholder payout
The latest report from British asset management company Janus Henderson shows that shareholder dividends last year reached a record $1.7 trillion. The report found that nearly half of total global dividend growth came from the banking sector, which paid out record dividends as rising borrowing costs boosted lenders’ profit margins.
Boeing crisis hurts airlines
Several airline chief executives said Boeing’s delivery delays were forcing airlines to change their growth plans. Boeing’s crisis has deepened since a door jam burst on an Alaska Airlines Max 9 aircraft mid-flight in January. Southwest Airlines, Alaska Airlines and Unityare some of the biggest buyers affected by Boeing plane problems.
castle rate cut
Citadel founder and CEO Ken Griffin said inflationary headwinds still exist and the Fed should not cut interest rates too quickly. “If I were them, I wouldn’t want to cut rates too quickly,” he noted, adding that it would be “more damaging” if they had to change course after the initial rate cut. “I think they’re going to cut rates a little slower than people expected two months ago.”
(PRO) Buying or selling Nivida?
Driven by the global artificial intelligence craze, Nvidia’s stock price has soared more than 200% in 2023 alone. Is it time to take profits or should investors stay the course? Experts currently holding shares in the chip giant share their insights.
bottom line
Inflation increased again for the second consecutive month.
February’s The consumer price data was somewhat better than January’s troubling inflation numbers.
Still, core inflation, which excludes food and energy, was stronger than expected, rising 0.4% last month, reflecting the lingering stickiness of price pressures.
IInvestors do not expect the latest data to provide any impetus for the Federal Reserve to cut interest rates in June. This may be why the market reacted relatively mildly to the news.
Kathy Jones, chief fixed income strategist at Charles Schwab, said: “We have the data and it’s not good news for the Fed, but the market doesn’t see it as material for a rate cut later this year. threaten.” X said.
However, the hit article created a problem for the Fed and disrupted its deliberations on upcoming rate cuts.
“The longer-term deflationary trajectory may not have changed, but the road to the Fed’s 2% target will be bumpy,” said Jeffrey Roach, chief economist at LPL Financial. “Markets are expected to struggle with the impact on Fed policy.”
There will be plenty of opportunities for Wall Street when the central bank meets next week. Investors’ main focus will be whether the Fed continues to set three interest rates this year or whether officials decide to change course.
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