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 Stocks plunged on Wednesday as Treasury yields continued to rise. Giant capacitors such as apple, NVIDIA and Yuan A drop of more than 2%. Asia-Pacific markets mostly followed Wall Street lower Thursday. Korean Cospi The index fell about 0.7% as the country’s GDP grew 0.1% quarterly, narrowly avoiding a technical recession.
Tesla beats profit expectations
Tesla The company’s shares rose 12% in after-hours trading after the company’s third-quarter profit beat Wall Street expectations. However, Tesla’s revenue increased by 8% year-on-year during the same period, slightly lower than expected. Chief Executive Elon Musk said “vehicle growth” will reach 30% next year due to “lowering vehicle costs” and “the emergence of autonomous driving technology.”
SK hynix profits hit record high
SK Hynix’s third-quarter profit hit a record, reaching 7.03 trillion won (US$5.08 billion), exceeding LSEG’s expectations. The South Korean chipmaker’s quarterly revenue rose 94% year over year, but was still slightly below expectations. SK Hynix is one of the world’s largest memory chip manufacturers and a major supplier to Nvidia.
Apple Intelligence potential collaboration with China
Apple Chief Executive Tim Cook met with Jin Zhuanglong, China’s Minister of Industry and Information Technology, in China on Wednesday, according to a person familiar with the matter. Ministry statement. Ivan Lam, senior research analyst at Counterpoint Research, said: “The company may seek to strengthen cooperation with local companies to launch Apple Intelligence in China.”
(PRO) European Stock Top Picks
European stocks may be lagging the U.S. so far, but that’s just a generalization and doesn’t apply to all stocks. Bernstein has picked out its “top picks” for European stocks, four from different sectors that the research firm believes could see gains of more than 50%.
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.
This is happening despite the fact that the Federal Reserve cut interest rates by 50 basis points at its September meeting and said it would cut rates by the same amount further before 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 may 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 believes stocks could still rise in 2025 despite 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.
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