April 17, 2024

Westside People

Complete News World

US stocks fall as doubts grow about technology and interest rate cuts

US stocks fall as doubts grow about technology and interest rate cuts

US stocks fell on Tuesday, retreating further from record highs, as uncertainty over interest rate cuts and continued strength in technology stocks sparked market caution.

The S&P 500 (^GSPC) fell about 0.4%, while the Dow Jones Industrial Average (^DJI) fell about 0.3% after a losing start to the week. Futures on the Nasdaq Composite (^IXIC) fell roughly 0.8% as declines in Apple (AAPL) and Tesla (TSLA) continue to weigh on stocks more broadly.

The debate is now over whether the technology gains behind the recent record stock rally have peaked, as downbeat news saps the “FOMO” – fear of missing out – that is seen as keeping investors engaged.

In early trading, Apple came under pressure after a report that iPhone sales fell 24% in China, adding to Monday's loss in the wake of a $2 billion EU antitrust fine. Tesla continued its decline, as the closure of its massive factory in Berlin heightened concerns about falling shipments and a Chinese price war.

Meanwhile, confidence in the Fed's upcoming easing took a hit after policymaker Rafael Bostic's comments. The head of the Federal Reserve Bank of Atlanta said he expects only one rate cut this year, set for the third quarter.

Investors are now more focused on Federal Reserve Chair Jerome Powell's testimony before Congress on Wednesday. His words will be closely watched for any change in the mantra that policymakers need to be convinced that inflation has been beaten before they can act.

Meanwhile, Bitcoin (BTC-USD) reached a new all-time high, briefly surpassing the previous record of $68,789 as of November 2021. It has since retreated to trade around $67,000 per coin.

See also  Buy Excelerate Energy now to get a bargain

In companies, Target's (TGT) earnings beat Wall Street expectations, helping shares rise more than 10% in early market trading.

He lives4 updates

  • Bitcoin reaches a new record high

    Bitcoin (BTC-USD) reached a new all-time high of $68,869 to briefly surpass the previous record of $68,789 as of November 2021. It has since retreated to trade around $67,000 per coin.

    The sudden price rise comes amid US regulatory approval of Bitcoin ETFs, which… Launched In January. according to BloombergETFs generated more than $4.2 billion in net new inflows in just one month.

    Prices of other cryptocurrencies such as Ethereum (ETH-USD) have also seen a boon amid Bitcoin's rise. Ethereum prices have risen by 66% since the beginning of the year to trade at around $3,800 per coin.

  • Overall preparation and election season

    This day will likely be filled with Super Tuesday analysis from various market experts and other experts.

    So why not join the fun here at Yahoo Finance.

    A good letter from one of my favorite economists, Michael Schumacher, who works at Wells Fargo, just arrived in my inbox. I found it useful to see how he thinks about potential market movements months before the election, with a particular focus on fiscal and monetary policy.

    Schumacher's ideas.

    Republican sweep

    “In our view, a Republican sweep is the scenario that would cause the largest increase in deficit and Treasury financing needs after 2025. We expect easier fiscal policy under the Trump administration, especially if Republicans control Congress. President Trump is likely to want to extend , if not an expansion, of his previous tax cuts. We expect this scenario to have the largest impact on the Treasury premium and the yield curve (e.g. 5/30s). As we noted earlier, the curve will likely steepen if Trump wins big over the next few weeks. “It becomes increasingly likely that the Republicans will sweep.”

    Democratic sweep

    “This scenario also seems likely to include a larger deficit and a steeper Treasury curve, but by a smaller margin than in the Republican sweep. Even if Democrats sweep on Election Day, we doubt they will allow the TCJA to fully expire,” our economists say. “As scheduled.” Tax rates could rise more for higher earners. Furthermore, corporate income tax is also likely to increase in this scenario. Although some individual income tax provisions will likely expire as planned, we expect more meaningful spending packages to accompany the expiration of the tax cuts.”

  • Stocks fall more than record levels

    US stocks fell on Tuesday, once again pulling back from record highs.

    At the opening bell, the S&P 500 (^GSPC) fell 0.4%, while the Dow Jones Industrial Average (^DJI) fell about 0.3% after a losing start to the week. Futures on the Nasdaq Composite (^IXIC) fell roughly 0.8% amid ongoing drawdowns from Apple (AAPL) and Tesla (TSLA).

  • It's Super Tuesday, Target's CEO mentions the election

    Super Tuesday is unlikely to move markets.

    Well, besides there's a lot going on this week in the markets from wild moves in Bitcoin to a drop in Tesla (TSLA) stock.

    But at some point this year, the US presidential election looks set to become contentious He will move Markets. That's why I receive feedback about elections from senior leaders today In order to help guide investors through the turbulent waters months from now.

    Target (TGT) Chairman and CEO Brian Cornell — who I last saw in person inside the White House a few months ago before meeting with the Biden administration — didn't offer me much about his overall views on Super Tuesday. However, it gave me enough in a phone conversation to start thinking about how consumer stock trading might behave in the months leading up to November.

    Here's what he told me:

    “We're watching it [the election] Like you, really carefully. We looked at past trends during election years. I think it's guaranteed to bring a little cheer to guests during uncertain times. Rest assured we make Target a special place for them to shop, filled with relevant products and great value. But we know they will continue to consume, and we want to be a destination during what can be a very difficult and uncertain time period.”