The following news items are the most crucial for investors to know as they begin their trading day:
1. September days with clouds
Stocks are declining as September draws to a close. The three main U.S. indexes have all decreased as we approach the final trading week of the month. The S&P 500 has decreased by 4.2%, the Nasdaq Composite by 5.9%, and the Dow Jones Industrial Average has down by 2.2%. The markets will be affected by Washington’s efforts to prevent a government shutdown this week.
2. There is a threat of a shutdown.
There is now no apparent path for Congress to enact a spending bill before the weekend deadline and avoid a shutdown of the government. Long-term shutdowns may result in layoffs, altered benefits, or reduced economic growth. Speaker Kevin McCarthy was unable to get the backing of hardline conservatives who demanded significant spending cuts, and the Republican-led House left Washington for the weekend without passing a funding proposal.
3. Hollywood authors reach a tentative agreement
A proposed labor agreement between Hollywood writers and producers would put an end to a nearly 150-day strike. Details of the agreement, which the parties arrived upon over two days of weekend negotiations, were not immediately available. Members of the Writers Guild of America must ratify the agreement. In its statement to members, the association said that it offers “meaningful gains and protections for writers in every sector of the membership.”
4. Amazon makes significant AI bets
The advancement of artificial intelligence is the subject of a significant bet by Amanzon. Anthropic, an AI business that creates chatbots that compete with OpenAI’s ChatGPT, will receive a $4 billion investment from the e-commerce giant. Anthropic will use Amazon Web Services as its primary cloud provider as part of the agreement, giving AWS customers new capabilities through Anthropic.
5. Increased credit card losses
According to Goldman Sachs, credit card industry losses are increasing at a rate that has not been witnessed since the Great Recession. According to the bank, current losses have increased by 1.5 percentage points from a September 2021 low of 3.63%. According to Goldman, such losses will increase much more, to about 5%. The estimate was released as the nation’s credit card debt reached $1 trillion.
Source (CNBC)
