Fed hints at only one rate cut | Wilnesh News

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.

a rate cut
The Fed expects Only one interest rate cut this year, less than three-quarters of the cuts forecast in March. The Fed acknowledged “modest” progress toward its 2% inflation target. As widely expected, the new guidance comes while keeping interest rates steady. Federal Reserve Chairman Powell said the central bank Not confident yet Start lowering interest rates, even in May consumer price index Temperatures were cooler than expected on Wednesday. “We view today’s report as progress and confidence building,” Powell said. “But we do not believe we have the confidence to begin easing policy at this time.”

More records
this S&P 500 Index Closed above 5,400 points for the first time With the Fed hinting at one rate cut later this year May inflation data Softer than expected. this Nasdaq Index also hit a record high, and at the same time Dow Jones Industrial Average down 0.1%. 10-Year Treasury Bond Yield Ministry of Finance fall 7 basis points to 4.33%, with the Fed saying that it had made “moderate” progress on inflation. US oil prices Rising as investors bet Supply will tighten later this year.

Top of the list
After a short tail Nvidia In terms of market capitalization, apple has recaptured its deeds The world’s most valuable companyovertaking Microsoft. The resurgence comes after Apple announced an aggressive push into artificial intelligence, igniting investor enthusiasm. As of 10:45 a.m. ET, Apple’s market value soared to $3.3 trillion, surpassing Microsoft’s $3.2 trillion valuation. But by the close, Microsoft had regained its slim advantage over Apple. Leading financial institutions such as Morgan Stanley, Evercore and Bank of America have also expressed this optimism, predicting that Apple’s artificial intelligence advances will drive a surge in new iPhone sales.

cash
game station Stock price plummets Wednesday coincided with a surge in trading volume in call options that “Roaring Kitty” may own. More than 93,000 contracts with the same strike price and expiry date as those held by Keith Gill were traded, well above the 30-day average. While it’s unclear whether Gill was behind the scenes, guess Indicating that he may have closed his position to avoid the need for a large cash outlay to exercise the option before June 21.

China Telecom Union assists Hong Kong

Hong Kong’s Hang Seng Index Up 0.54% post-Brexit levy tariffs Regarding the import of electric vehicles. “The move is modest “In contrast, the United States has imposed a harsh 100% tariff on Chinese electric vehicle imports,” Morningstar equity analyst Vincent Sun said in a report on Wednesday. BYD, auspicious, Nioh and ideal car All achieved strong results. However, mainland China’s CSI 300 index fell 0.43%. Elsewhere, Japan Nikkei 225 Index The stock edged down 0.1%, giving up earlier gains ahead of Friday’s Bank of Japan interest rate decision. Korean Cospi and Australian S&P/ASX 200 Index Both are trading higher, while Taiwan Weighted Index Another record high.

(PRO) The next bottleneck of artificial intelligence
As chipmakers and hyperscalers bask in the spotlight of the artificial intelligence infrastructure boom, savvy investors are already eyeing the next bottleneck: networking. The need for high bandwidth and low latency for large language models and other AI applications creates lucrative opportunities for those who can provide the powerful networks needed for the future of AI.

Although the Fed kept interest rates unchanged Forecast only one cut Ronald Temple, chief market strategist at Lazard, for the remainder of 2024 further reductions expected. He advised investors, “Don’t take too much guidance from today’s FOMC ‘dot plot.’ With upcoming inflation and labor reports confirming that price pressures and labor market tightness have eased, I expect the Federal Open Market Committee to Open Market Committee members will reassess their forecasts, including further rate cuts before the end of the year.

Fed Chairman Powell echoed Temple’s sentiments, saying Strong jobs data for May Maybe a little “Exaggerated“There’s an argument to be made that those numbers are probably a little bit exaggerated, but they’re still strong,” Powell said of the U.S. nonfarm payrolls report, moving toward a better balance.

With Fed and inflation data coming in, the next big story for investors is whether shareholders will approve Elon Musk’s $56 billion pay deal today. The problem for Musk is that even if he gets his way, he faces numerous lawsuits.

Many large investors who voted against the compensation package in 2018 say they will do so again. California Public Employees Retirement System, California Institute of Technology, Norway’s $1.7 trillion sovereign wealth fund and advisory group international space station and Glass Lewis opposed the proposal, but he did have his own ideas supporter.

Delaware State Court, in Invalidate the original transaction, highlighting concerns about the independence of the remuneration committee. Tesla Chairman Robyn Denholm, for example, cashed in $280 million in stock, while other committee members have deep-rooted business or personal relationships with Musk.

Even more surprising is that Musk asked his former divorce lawyer Todd Maron (who was also drafting a compensation package at the time) Arrange a conference call with dissenting shareholders “Convince them to divest from Tesla and any (his) company.”

While some feared Musk might abandon Tesla, the court found that unlikely.

GLJ Research CEO Gordon Johnson provides a different perspective In an interview with CNBC, he said: “Musk mentally left Tesla a long time ago. But he will not leave. He will do what he has done for many years. He will drain Tesla to support his other business.

Employees’ Retirement System of Rhode Island (ERSRI) File a lawsuit Musk was accused on Tuesday of using inside information to sell Tesla stock to make billions of dollars. This is similar to another lawsuit accusing Musk of insider trading When he sold $7.5 billion worth of stock.

ERSRI’s lawsuit alleges that Musk was disloyal to Tesla by transferring employees to work at X.suspicious”.

However, Musk posted on X He expressed gratitude to shareholders, who had voted to approve his compensation package and move Tesla’s legal home “significantly” to Texas. The results will be announced at a meeting at Tesla headquarters in Texas on Thursday at 4:30 p.m.

— CNBC’s Jeff Cox, Lisa Kailai Han, Pia Singh, Alex Harring, Spencer Kimball, Yun Li, Rohan Goswami, Sean Conlon, Lim Hui Jie, Sheila Jiang and Sarah Min contributed to this report.