It is a daily ritual for millions of Australians, but if you have noticed the price of your morning flat white or soy latte increase, brace yourself — it is likely to get worse.
By the end of the year,...
It is a daily ritual for millions of Australians, but if you have noticed the price of your morning flat white or soy latte increase, brace yourself — it is likely to get worse.
By the end of the year,...
Expect a busy week on Wall Street!
Inflation data on Wednesday will provide insights into the Fed's potential interest rate decisions. Earnings season kicks off with companies like Delta Air Lines and banks reporting their financial performance. Bank of America predicts strong earnings growth due to cost reductions and a favorable economic environment. The shift from goods spending to services supports earnings for businesses. Overall, the market's trajectory is more tied to earnings strength than potential Fed rate cuts.
Federal Reserve officials believe interest rate cuts are likely this year, with some expecting three reductions. However, these cuts are unlikely to begin before the June meeting. Additionally, officials now believe the long-term interest rate may be higher than previously anticipated, potentially reaching 2.6%. This shift suggests that the Fed is becoming more cautious in its approach to monetary policy.
US stocks fell on Monday due to concerns that a strong economy may delay an interest rate cut by the Federal Reserve, hurting the stock market. Some sectors were hit harder, such as FedEx, which lost after losing a major contract. However, the technology sector outperformed, with companies like Micron Technology gaining. Trump Media also saw a significant decline amidst financial concerns.
The S&P 500 gained this week, marking its biggest weekly increase this year, despite most stocks falling on Friday. The market was influenced by the Federal Reserve's plan for further interest rate hikes, but not all sectors performed equally. While technology stocks like Apple and Microsoft showed limited growth, financials and industrials saw improvement. Company-specific news included a decline in Nike and Lululemon shares due to revenue concerns, while FedEx shares rose after exceeding profit expectations.
The Federal Reserve is expected to lower interest rates by 0.75% to 1% in 2024. This is despite recent high inflation data, and strategists believe the Fed will prevent a recession and achieve a "soft landing" as it adjusts interest rates.
