Stock market today: US stocks nudge higher with Fed speakers, inflation in focus
09/23/2024 23:29
The focus is on Fed speakers and a key inflation reading for insight into whether another big rate cut is coming.
Trump media stock tanks 6%, reaches new low
Trump Media & Technology Group (DJT) stock dropped another 6% on Monday to touch another low after the company’s six-month lock-up period expired last week.
Shares are down roughly 15% since last Thursday when former President Donald Trump and other stakeholders were legally allowed to sell their stock for the first time since the company went public earlier this year.
Despite recent reassurances from Trump that he wouldn't sell any of his stake, shares of the social media company have declined to their lowest level since their March debut.
“I have absolutely no intention of selling,” Trump told reporters at a press conference prior to the lock-up period expiration. “I love it. I use it as a method of getting out my word.”
The stock has been volatile, often moving in tandem with any development related to the Republican presidential candidate.
Intel stock jumps after report of possible Apollo investment
Intel stock (INTC) popped more than 4% Monday following a Bloomberg report of a potential multibillion-dollar investment from Apollo Global Management. (Disclosure: Yahoo Finance is owned by Apollo Global Management.)
The private equity firm has offered to invest up to $5 billion in Intel, Bloomberg reported, adding that Intel executives are weighing the offer. The news follows closely on the heels of multiple reports that the chipmaker is considering a friendly takeover by another chip giant, Qualcomm (QCOM).
Fed's Bostic and Kashkari explain why they supported a jumbo rate cut
Yahoo Finance's Jennifer Schonberger reports:
Two Federal Reserve officials explained why they were in favor of reducing interest rates by a jumbo 50 basis points instead of a smaller first cut, citing progress on inflation and a cooling job market.
Those twin developments "have emerged much more quickly than I imagined at the beginning of the summer," Atlanta Fed president Raphael Bostic said in a speech.
"In this moment, I envision normalizing monetary policy sooner than I thought would be appropriate even a few months ago."
Read more here.
Economic output steady in September, election uncertainty weighs on business confidence
S&P Global's flash US composite PMI came in at 54.4 in September, down from 54.6 in August. Economists had expected the index, which captures activity in both the services and manufacturing sectors, to tick down slightly.
The services component of S&P's report showed the index registered 55.4 this month, down from 55.7 in August. Meanwhile, manufacturing activity continued to lag, falling to a reading of 47 from 47.9 the month prior and hitting a 15-month low.
Any reading above 50 for these indexes represents expansion in the sector; readings below 50 indicate contraction.
“The early survey indicators for September point to an economy that continues to grow at a solid pace, albeit with a weakened manufacturing sector and intensifying political uncertainty acting as substantial headwinds," Chris Williamson, the chief business economist at S&P Global Market Intelligence, wrote in the release.
The survey's future output index, which, measures optimism about the output in the year ahead, hit its lowest level since October 2022.
“Business sentiment, demand, hiring and investment are being subdued by uncertainty surrounding the Presidential Election, casting a shadow over the outlook for the year ahead at many firms," Williamson wrote.
Tesla stock up 3% as shares continue steady recovery
Tesla (TSLA) shares were up more than 3% on Monday morning following positive Wall Street commentary on the electric vehicle maker.
The stock has seen a steady recovery over the past month, up about 15% since the start of September.
Tesla will be holding its highly anticipated robotaxi event on Oct. 10.
Stocks open slightly higher as S&P 500, Nasdaq rise
The major averages opened slightly higher on Monday. The Dow Jones Industrial Average (^DJI) was relatively flat following a record close on Friday. The S&P 500 (^GSPC) rose roughly 0.2%, while the tech-heavy Nasdaq Composite (^IXIC) climbed 0.3%.
Last week, the markets closed out with gains after the Federal Reserve cut interest rates by 50 basis points.
Investors will pay close attention to Friday's reading on the PCE index — the Fed's preferred inflation gauge — and Thursday's second quarter GDP print. Those prints could give clues on whether policymakers will cut another 0.5% this year.
Minneapolis Fed president Neel Kashkari released an essay on Monday on why he supported cutting interest rates last week. He argued monetary policy is still too tight.
Fed’s Kashkari says cutting rate was right decision, still sees monetary policy as 'tight'
Minneapolis Fed president Neel Kashkari released an essay on Monday on why he supported cutting interest rates last week and argued monetary policy is still too tight.
Kashkari wrote, "Cutting the policy rate by 50 basis points last week was the right decision — one that reflects both the substantial progress we’ve made in lowering inflation and also the softening of the labor market."
His comments follow the Federal Open Market Committee’s decision to cut interest rates by 50 basis points last Wednesday.
“While there remain mixed signals about the underlying strength of the U.S. economy, and I remain uncertain just how tight policy is, I do believe policy remains tight today,” wrote Kashkari.