Money

U.S. market drops 700 points as hot inflation continues

Published

1 year ago

February 14, 2024

Ahron Young

Stocks faced a downturn following the release of data indicating that inflation did not ease as much as anticipated last month.

The report revealed a 3.1% increase in consumer prices in January compared to a year earlier, marking a slight slowdown from December but surpassing the 2.9% rise forecasted by economists surveyed by The Wall Street Journal.

The news has left investors grappling with uncertainties regarding the Federal Reserve’s stance on interest rates. Federal Reserve Chair Jerome Powell has emphasized the need for additional evidence demonstrating a return to the central bank’s 2% inflation target before considering rate adjustments.

Earnings report

Amidst this economic backdrop, several major companies, including Coca-Cola, unveiled their earnings reports today. Investors are also anticipating results from Airbnb and other key players later in the afternoon.

In today’s trading session:

– U.S. stocks experienced broad declines, with all three major indexes—Dow industrials, S&P 500, and Nasdaq—registering losses of at least 1.6%. The Dow industrials saw a decline of around 650 points. Despite today’s setback, all three indexes remain in positive territory for the year.

– Across the S&P 500, every sector faced downward pressure.

– Following the inflation report, the yield on the 10-year Treasury note edged higher, reaching 4.312%.

– Bitcoin, after surpassing the $50,000 mark on Monday for the first time in over two years, hovered around $49,000 today.

In global markets:

– European stocks mirrored the downward trend seen in the U.S.

– Markets in China and Hong Kong remained closed for holidays.

– Japan’s Nikkei index reached a fresh 34-year high, contrasting with the downturn observed elsewhere.

As investors continue to monitor inflationary pressures and corporate earnings, today’s market activity reflects ongoing volatility and uncertainty in the economic landscape.

Money

Aussie job market defies expectations with stable 4.1% unemployment rate

Australia’s unemployment held at 4.1% in May amid job loss; full-time roles surged, underemployment fell, and female participation rose to 60.9%, keeping RBA cautious despite rate cut speculation.

Published

3 days ago

June 20, 2025

ticker NEWS

Australia’s unemployment held at 4.1% in May amid job loss; full-time roles surged, underemployment fell, and female participation rose to 60.9%, keeping RBA cautious despite rate cut speculation.

Australia’s unemployment rate held firm at 4.1% in May, despite a small drop of 2,500 jobs—falling short of forecasts.

But dig deeper: full-time jobs jumped by nearly 39,000, underemployment hit post-COVID lows, and female participation reached a record 60.9%.

With labour market resilience still strong, the Reserve Bank is unlikely to be swayed—though markets see an 80% chance of a July rate cut.

The RBA remains in a balancing act, cooling inflation, without choking growth.

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#RBA #JobsData #AustraliaEconomy #Unemployment #InterestRates #LabourMarket #tickernews

Money

Central banks struggle with economic uncertainty and rates

Central banks face challenges amid economic uncertainty, impacting policy decisions and investor confidence worldwide.

Published

3 days ago

June 20, 2025

Ahron Young

Central banks face challenges amid economic uncertainty, impacting policy decisions and investor confidence worldwide.

In Short:
Central banks are grappling with economic uncertainty, prompting various interest rate cuts globally to stimulate growth. Many central banks, including those in Norway, Sweden, and Japan, are adjusting rates in response to inflation and trade concerns, while others like the Federal Reserve and the Bank of England are considering future cuts.

Central banks are facing significant uncertainty concerning economic growth and inflation, making their policy decisions increasingly challenging as they approach the end of their rate-cutting cycles.

This uncertainty is also impacting investors. Recently, Norway’s central bank surprised markets with an interest rate cut, while the U.S. Federal Reserve cautioned against relying heavily on its policy projections.

The Swiss National Bank responded to decreasing inflation and economic unpredictability by reducing its benchmark rate to 0% but may consider further cuts. The Bank of Canada has maintained its rate at 2.75%, suggesting a potential future cut in light of tariffs affecting the economy.

Sweden’s central bank cut its key rate as well, aiming to stimulate growth amid weak price pressures.

In New Zealand, expectations are for rates to remain steady after a recent reduction to protect its economy from global trade uncertainties. The European Central Bank has also cut rates, considering further adjustments to meet inflation goals.

The Federal Reserve is keeping rates steady, although further cuts are anticipated due to low inflation. In Britain, the Bank of England held rates but may continue cuts in response to weak labour indicators.

The Reserve Bank of Australia is prepared for rate cuts due to weak growth data and trade tensions, while Norway’s central bank has been cautious with its recent decision. The Bank of Japan remains the only bank in a tightening phase, balancing escalating tensions and tariff concerns with its monetary policies.

Money

Fed signals slower cuts amid rising risks

U.S. Federal Reserve revises economic forecasts downward, expecting growth slowdown and higher unemployment, but still plans rate cuts in 2024 and 2025.

Published

4 days ago

June 19, 2025

ticker NEWS

U.S. Federal Reserve revises economic forecasts downward, expecting growth slowdown and higher unemployment, but still plans rate cuts in 2024 and 2025.

At its latest meeting, the U.S. Federal Reserve revised its economic forecasts downward, with growth trimmed, inflation nudged up, and unemployment expectations now higher.

Despite this gloomier outlook, the Fed still sees two rate cuts in 2025, but just one in 2024 and one in 2026, a major dial-back from earlier projections.

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#FederalReserve #InterestRates #JeromePowell #Inflation #USEconomy #FedMeeting #tickernews