Hikers walk on layered sandstone rock formations in the Fire Wave area of Valley of Fire State Park near Overton, Nevada.
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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
Most markets fell except Nasdaq
The US market is Mix on Tuesday. this S&P 500 Index and Dow Jones Industrial Average Down slightly, but close to flatline. However, Nasdaq Index Add 0.18%. Asia-Pacific stocks were mostly higher on Wednesday, boosted by investor sentiment over blockbuster listings Tokyo Metro and China Resources Beverage.
Tokyo Metro debuts
Tokyo Metro The company’s stock price soared nearly 45% after it went public on Wednesday. The Japanese subway operator’s initial public offering attracted 348.6 billion yen ($2.3 billion), making it Japan’s largest IPO Within six years. Jesper Koll, expert director at financial services company Monex Group, said the Tokyo subway is a “cash cow”.
IMF downgrades China’s economic growth
The International Monetary Fund (IMF) said it lowered its forecast for China’s economic growth this year to 4.8% from 5% in July. world economic outlook report Published on Tuesday. The International Monetary Fund predicts that China’s gross domestic product (GDP) growth rate will slow to 4.5% in 2025 as China’s real estate industry may continue to drag down the economy.
TSMC denies supplying chips to Huawei
The Information is a technology-focused publication that last week reportk The Ministry of Commerce is investigating whether British Semiconductor It has been producing artificial intelligence or smartphone chips for Huawei, violating U.S. export regulations. The company disputed the report, telling CNBC on Wednesday that “TSMC is a law-abiding company and we are committed to complying with all applicable rules and regulations.”
(PRO) Growth Stock or Value Stock?
Growth-focused companies reinvest much of their revenue and loans back into the business to expand. Therefore, growth stocks tend to perform better when the economy is expanding and interest rates are low (the current environment in the United States).
bottom line
this Standard & Poor’s The stock is up more than 22% so far this year, breaking multiple closing records on the way to its peak.
Still, the composite index’s gains have slowed in recent days. On Tuesday, the S&P fell 0.05%, its first consecutive decline since early September.
When the meeting is suspended, barclays bank “We recommend staying on the sidelines for now. We think investors are likely to do the same; the risk rally should stall in the coming weeks,” they wrote.
However, it can still come back to life when a fast-moving vehicle stalls. Notably, all major U.S. stock indexes are trading above their 50- and 200-day moving averages, indicating they have forward momentum.
indeed, UBS Wealth Management this month upgraded U.S. stocks to attractive from neutral. “We view a ‘no landing’ scenario as positive for U.S. and global equities,” said Mark Haefele, chief investment officer at UBS Great Wall.
“There are signs that the long-term trend growth rate may be higher than previously estimated,” Heifler added.
The International Monetary Fund also believes that U.S. economic growth will remain strong. in its latest world economic outlookThe IMF raised its 2024 GDP forecast for the United States to 2.8% from 2.6% in July, and also raised its growth forecast for the country in 2025. It is the only developed economy to have its economic trajectory upgraded by the International Monetary Fund for two consecutive years.
We have American consumers to thank for that. “The elasticity of consumption is largely the result of strong real wage growth,” the IMF wrote in its report.
With the presidential election approaching and stock valuations elevated, the outlook for the market could be tough right now. But S&P may stick to climbing the rocky ridges of rising mountains.
—CNBC’s Brian Evans, Hakyung Kim, Pia Singh and Samantha Subin contributed to this report.
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