Reported 2 months ago
Wall Street is experiencing a significant selloff following a disappointing jobs report that has heightened fears of a recession. Peter Tchir from Academy Securities warns investors to be cautious, predicting additional selling pressure and advising them to secure profits in investment-grade bonds while potentially investing in energy sectors like XLE and oil as opportunities arise.
Source: YAHOO
Reported 2 months ago
SoftBank Group's shares plummeted 19% on Monday, marking its biggest single-day decline since 1998, resulting in a loss of $15 billion in value and affecting founder Masayoshi Son's wealth significantly. This downturn, attributed to a broader market rout and heightened economic concerns, comes as SoftBank prepares to invest heavily in AI and semiconductor technologies. The company's stock decline for the September quarter now totals 38%, posing execution risks despite potential profitability from its investment strategy.
Source: YAHOO
Reported 2 months ago
The ISM's US services index climbed to 51.4 in July, surpassing the anticipated 51.0, indicating growth in the services sector, aided by improvements in employment and inventory. This contrasts with the S&P Global Services PMI, which fell short of July expectations.
Source: YAHOO
Reported 2 months ago
The U.S. services sector experienced a significant rebound in July, as indicated by the Institute for Supply Management's PMI, which rose to 51.4 from a low of 48.8 in June. This improvement was driven by an increase in new orders and the first employment growth in six months, alleviating recession fears despite a recent spike in the unemployment rate. The labor market showed positive signs with nonfarm payrolls growing by 114,000, including 72,000 jobs in services, the most modest gain since December 2020.
Source: YAHOO
Reported 2 months ago
The Federal Reserve decided to hold interest rates steady, but with signs of a weakening labor market, economist Veronica Clark warns that the Fed may be slow to cut rates. She observes that the declining employment data points to possible recessionary conditions, and while the Fed is likely to consider cuts, she believes they are concerned about appearing to panic.
Source: YAHOO
Reported 2 months ago
The Nasdaq Composite Index has entered correction territory, down 10% from its July peak, driven by lackluster jobs data and disappointing earnings from Amazon and Intel. In response, inverse ETFs, which benefit from market downturns, have seen significant increases in value, including Direxion Daily Semiconductor Bear 3X Shares and MicroSectors FANG & Innovation -3X Inverse Leveraged ETN. While these products provide opportunities for short-term gains, their potential for high losses in volatile markets should be carefully considered.
Source: YAHOO
Reported 2 months ago
Major banks including JPMorgan, Citigroup, and Goldman Sachs are reassessing their projections for Federal Reserve interest rate cuts, with a growing expectation that cuts might begin during the Fed's September policy meeting. This insight comes from notes shared by leading economists and strategists from these institutions.
Source: YAHOO
Reported 2 months ago
The Cboe Volatility Index surged 172% to 62.27 on Monday, marking the highest point since March 2020, as fears of a recession have intensified following disappointing job growth and rising unemployment. The Labor Department reported only 114,000 new jobs in July, pushing the unemployment rate to 4.3%. This has raised concerns about the economy's stability, causing significant sell-offs in major indexes like the S&P 500, Dow Jones, and Nasdaq.
Source: YAHOO
Reported 2 months ago
Wall Street is intensifying pressure on the Federal Reserve to implement aggressive rate cuts in response to significant market declines and a lackluster jobs report that has raised recession fears. Traders are now anticipating a half percentage point reduction in the upcoming months, with discussions on potential preemptive cuts before the next policy meeting. Despite mixed opinions on immediate actions, there is a growing sentiment that the Fed may need to adapt more swiftly to emerging economic data.
Source: YAHOO
Reported 2 months ago
Billionaire Bill Ackman faced a tumultuous week as his hedge fund, Pershing Square Holdings, reported a 4.7% loss in July, wiping out significant gains for the year. This decline was exacerbated by a sharp downturn in Universal Music's stock, which fell 24.5% following disappointing growth signals in the music streaming market. Despite Ackman's history of aggressive investments and a reputation for risk-taking, this week marks a significant challenge for his investment strategy.
Source: YAHOO
Reported 2 months ago
US stock markets have experienced a significant downturn due to a worldwide sell-off, with Tesla (TSLA) shares dropping over 10% at market open. This decline raises concerns among investors facing recession fears, prompting discussions on the factors exacerbating the electric vehicle manufacturer's stock drop.
Source: YAHOO
Reported 2 months ago
Amid growing recession fears, stock markets are experiencing a significant sell-off, causing the cryptocurrency sector to feel the impact heavily. Bitcoin's price briefly fell below $50,000, marking its lowest point since February, while Ethereum has lost all gains made in 2024. Morning Brief hosts provide an analysis of the situation.
Source: YAHOO
Reported 2 months ago
Warren Buffett's Berkshire Hathaway has significantly cut its stake in Apple shares by nearly 50% during the second quarter, continuing a trend of reducing its investment in the tech giant over the past few quarters. Morning Brief anchors Brad Smith and Seana Smith discuss the implications of this decision.
Source: YAHOO
Reported 2 months ago
On a chaotic trading day, major online brokerages Charles Schwab and Fidelity faced significant outages, with users unable to access their accounts as market fears escalated due to weak economic data and geopolitical tensions. Downdetector reported nearly 14,500 outages for Schwab and over 3,600 for Fidelity. These disruptions prompted complaints from users and drew regulatory scrutiny amid concerns about the platforms' ability to handle high trading volumes.
Source: YAHOO
Reported 2 months ago
In a recent analysis, Ed Yardeni, President of Yardeni Research, draws parallels between the current market sell-off and the infamous Black Monday of 1987, attributing parts of the decline to disappointing employment data. Despite the turmoil, he reassures viewers that this situation is not indicative of an imminent recession and expects the economy to demonstrate resilience, suggesting that the volatility will pass and potentially affect Federal Reserve interest rate decisions.
Source: YAHOO
Reported 2 months ago
Peloton Interactive, once a thriving company during the pandemic, is now facing severe challenges as its sales and subscribers decline. The company has not posted a profit since early 2021, has taken on significant debt, and experiences leadership instability. With a shrinking customer base and ineffective turnaround strategies, investing in Peloton is deemed unwise, with more promising alternatives available in the market.
Source: YAHOO
Reported 2 months ago
Global markets saw a sharp decline on Monday, driven by significant factors including the U.S. Federal Reserve's interest rate policy, the unwinding of the yen-carry trade, a reset of major tech stocks, spikes in market volatility, and rising geopolitical tensions in the Middle East. The selloff has led to a loss of over $1.3 trillion in U.S. stock value, particularly affecting the tech-heavy Nasdaq, which has entered correction territory.
Source: YAHOO
Reported 2 months ago
Swiss prosecutors have found Glencore's international unit criminally liable for bribery involving a Congolese official, resulting in fines and compensation totaling over $150 million. The investigation concluded that Glencore failed to adequately prevent bribery during its 2011 acquisition of mining interests in Congo. Although Glencore did not admit wrongdoing, it will not appeal the decision, continuing the scrutiny faced by major commodities firms in their dealings in developing nations.
Source: YAHOO
Reported 2 months ago
Kellanova shares soared by 18% following a report that Mars, the candy giant, is contemplating a possible acquisition of the snack manufacturer known for brands like Pringles and Pop-Tarts. Analysts predict that a merger could significantly expand Mars' presence in international markets, amidst a recent uptick in deal-making in the packaged food sector.
Source: YAHOO
Reported 2 months ago
Major stock indices, including the Dow, Nasdaq, and S&P 500, experienced significant declines on Monday morning, with the Nasdaq Composite falling over 2.4% due to a widespread sell-off in technology stocks.
Source: YAHOO
Reported 2 months ago
A significant global sell-off in stock markets has been observed, with Japan's Nikkei index experiencing its most severe decline since 1987 and European markets also trading sharply lower. Yahoo Finance markets reporter Jared Blikre analyzes the latest developments in the global market.
Source: YAHOO
Reported 2 months ago
Recent analyst upgrades on Wall Street include PayPal, which was raised to 'Buy' by Phillip Securities with a new price target of $80, and Kellanova, upgraded to 'Outperform' by RBC Capital on acquisition interest. Other notable moves include BofA upticking Five9 and Lockheed Martin, while Moderna and Extra Space Storage faced downgrades. Initiations were made on MKS Instruments and Praxis Precision, highlighting a variety of market shifts.
Source: YAHOO
Reported 2 months ago
US Treasury yields saw a rebound from one-year lows on Monday following comments from Chicago Fed President Austan Goolsbee that downplayed recession risks associated with July's weak job data. Economic activity in the services sector also showed signs of improvement, easing fears of an economic downturn. Meanwhile, the yield curve briefly turned positive, suggesting that traders are adjusting their outlooks for potential interest rate cuts by the Federal Reserve.
Source: YAHOO
Reported 2 months ago
Advanced Micro Devices (AMD) is becoming a major player in the AI chips market, particularly with its recently launched MI300 series GPUs, which are gaining traction among significant tech companies and achieving record sales. Despite a 29% drop in its stock, AMD's robust performance and growth potential in the data center segment make it an appealing investment. With predictions of major spending on AI infrastructure in the coming years, AMD is poised for substantial growth, especially as it approaches its competitive MI350 series launch.
Source: YAHOO
Reported 2 months ago
On August 5, 2024, SoftBank Group suffered its most significant stock decline since going public in 1998, plummeting 19% and erasing $15 billion from its market value amid a broader market downturn. This decline follows Masayoshi Son's planned investments in AI and semiconductors and reflects growing concerns about the ability of AI companies to generate revenue. The stock's descent, now down 38% for the September quarter, has significantly impacted Son's personal wealth, bringing to light ongoing volatility in the technology sector.
Source: YAHOO