Money

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

Published

11 months ago

February 14, 2024

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

US stocks surge as banks report record profits

US stocks rise as banks report near-record profits; CPI slows, fueling hopes for continued Federal Reserve rate cuts.

Published

5 hours ago

January 16, 2025

ticker NEWS

US stocks rise as banks report near-record profits; CPI slows, fueling hopes for continued Federal Reserve rate cuts.

US stocks rose sharply following strong earnings reports from four major banks: JPMorgan, Goldman Sachs, Citigroup, and Wells Fargo.

The banks reported their second-most profitable year ever.

JPMorgan achieved a historic milestone by becoming the first US bank to exceed $50 billion in annual profit.

Goldman Sachs saw record revenue from its equities trading division.

Citigroup reported record revenue in three of its five key segments: wealth management, US personal banking, and services.

Wells Fargo, while having the smallest presence on Wall Street, recorded a 62 per cent increase in annual revenue from investment banking.

Bank of America and Morgan Stanley are set to announce their results on Friday AEDT.

In other news, the core Consumer Price Index (CPI) for December rose at a slower rate than anticipated, indicating a potential easing of inflation.

This development has strengthened expectations that Federal Reserve policymakers may have room to continue cutting rates.

Consequently, the yield on the US 10-year bond dropped by 14 basis points to 4.66 per cent.

Similarly, UK yields fell by 16 basis points to 4.73 per cent after services inflation in the UK decreased to 4.4 per cent in December, down from 5 per cent in November, a more significant decline than the 4.8 per cent economists had predicted.

Money

Bitcoin rises 2% as market awaits inflation report

Published

20 hours ago

January 15, 2025

ticker NEWS

As of January 15, 2025, Bitcoin (BTC) is trading at approximately $97,198, reflecting a 2.17% increase over the past 24 hours. The cryptocurrency’s market capitalisation stands at around $1.93 trillion, with a 24-hour trading volume of about $54.23 billion.

This recent uptick comes as investors anticipate the upcoming U.S. inflation report, which could influence the Federal Reserve’s monetary policy decisions.

Money

Recovery on the horizon: investing in growth

Published

3 days ago

January 13, 2025

ticker NEWS

The ‘gloom to soon’ signal points to shares and property gains

Money Minute features finance expert Dr. Steve Enticott from CIA Tax, guiding audiences through practical advice and innovative strategies for financial freedom.