The war on inflation may be far from over | Wilnesh News

Workers assemble printed circuit boards at the Intervala manufacturing facility in Mount Pleasant, Pennsylvania, U.S., Tuesday, Jan. 30, 2024. The U.S. Census Bureau plans to release data on factory orders on February 2.

Justin Merriman | Bloomberg | 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

Wall Street stocks soar
Wall Street closed higher on Thursday, all The major averages hit new closing highs.this 30 stocks in the Dow Jones Index It closed up more than 250 points, or 0.7%. S&P 500 Index Benchmark rose 0.3%, while Nasdaq Index It rose slightly by 0.2%. The gains came after the Federal Reserve reiterated expectations for three rate cuts this year.

Apple sued for monopoly
The U.S. Department of Justice and more than a dozen states have filed a landmark antitrust lawsuit against Apple, accusing the tech giant of monopolizing the smartphone market. The iPhone ecosystem is said to have driven its “astronomical valuation” at the expense of consumers, developers and rival phone makers. This challenge poses significant risks to Apple’s walled garden business model.

Fed rate cut pioneer
Top U.S. asset manager Vanguard Group said the Federal Reserve is unlikely to cut interest rates this year, contrary to the central bank’s forecast. Shaan Raithatha, senior economist at the firm, said this could have an impact on central banks and global markets. Vanguard isn’t the only company raising the possibility of no rate cuts in 2024. Mark Okada, CEO of Sycamore Tree Capital Partners, also previously said that it is “very likely” that the Federal Reserve will not cut interest rates this year.

Reddit debuts
shares Reddit The company’s stock price rose 48% when it was first listed on the New York Stock Exchange under the stock code “RDDT.” A day earlier, the social media company priced its IPO at $34 per share, at the top end of the range. Strong demand for the offering reflects investor interest in new technology stocks after a long drought of initial public offerings.

(PRO) Bullish on gold
Gold prices surged to record highs, especially on expectations that the Federal Reserve will cut interest rates this year. Top hedge fund manager David Neuhauser predicts that gold prices could hit $2,500 by the end of 2025 and $3,000 by 2030. “The dollar is weakening, so commodities should break out and quickly become the best asset class considering rising inflation.” With that, three stocks were selected for investors to invest in.

bottom line

U.S. business activity appears to be strong amid inflationary pressures.

Newest S&P Global Flash U.S. Aggregate Index The index rose 0.3 points to 52.5, showing manufacturing expanded at the largest pace since mid-2022 in March.

The data points to a steady improvement in the health of the industry and marks the third consecutive month of expansion. A reading above 50 indicates expansion, while a reading below that level indicates contraction.

“The most encouraging news comes from manufacturing, where output is now growing at the fastest pace since May 2022,” said Chris Williamson, chief business economist at S&P Global Market Intelligence.

“The increase in output is related to improved demand for goods at home and abroad, driving a further recovery in business confidence in the outlook.”

The service industry fell more than expected, to 51.7, down 0.6 percentage points from a month ago, but still within the expansion range.

Price pressure also showed signs of picking up as companies raised selling prices by the most since April last year.

“Inflation in overall selling prices of goods and services has been driven by higher costs due to further wage growth and higher fuel prices, pushing inflation to its highest level in almost a year,” Williamson said.