To begin their trading day, investors should be aware of the following key news items:
1. Breaking
Thursday saw the longest winning runs in two years end for the S&P 500 and Nasdaq Composite. During the session, the tech-heavy Nasdaq Composite slid 0.9% after nine days of gains, while the S&P 500 dipped 0.8% following eight consecutive days of gains. The Dow Jones Industrial Average experienced a decrease of around 0.7% as well. By the end of the trading session, the S&P 500 and the Dow were down 0.3% and 0.5%, respectively, for the week, while the Nasdaq had gained 0.3%.
2. Lack of assurance
Jerome Powell, the chairman of the Federal Reserve, stated on Thursday that the bank is not sure if it has done enough to continue containing inflation. Powell stated his speech at the International Monetary Fund that the Fed is “not confident that we have achieved such a posture” despite the Fed’s continued commitment to reaching 2% inflation. A little over a week has passed since the Fed maintained interest rates at its target range of 5.25% to 5.5%. The improvement in consumer price measures has Powell and other policymakers “gratified,” but they “anticipate that the process of getting inflation sustainably down to 2% has a long way to go.”
3. Alphas resist ageing
Gen Alpha’s Christmas wish lists seem to indicate that you’re never too young to begin combating ageing. According to CNBC’s Gabrielle Fonrouge, skincare has become increasingly popular among consumers who were born in 2010 and after, and this trend is probably going to fuel end-of-year spending. The rise in popularity can be attributed in part to TikTok and other social media platforms, which allow children, with parental consent, to learn about toners, serums, and moisturisers through the efforts of “skinfluencers.” Moreover, nothing is as horrible as it seems: Skincare routines are beneficial for young children, according to experts, especially if they include sun protection in the morning.
4. Giving up the seat
The Republican Party will have an easier time gaining a majority in the upcoming Senate elections when Sen. Joe Manchin decides not to seek reelection in 2024. Manchin, a conservative Democrat who has grown to be a harsh opponent of President Joe Biden’s policies, is leaving a seat in the deeply conservative state of West Virginia. Republicans in the chamber will probably win the seat and the advantage now that Manchin is not in the Senate and, if rumours are to be believed, may even be out campaigning for president. Following Manchin’s decision, Steve Daines, the chairman of the National Republican Senatorial Committee, told NBC, “We like our odds in West Virginia.”
5. New benchmarks
The IRS announced on Thursday that the standard deduction and income tax brackets for 2024 will be somewhat higher. The modifications, which represent a period of sustained inflation for the US economy, go into effect for tax year 2024, or returns filed in 2025. Individuals earning more than $609,350 in taxable income and married couples earning $731,200 will be subject to the maximum rate of 37% in 2024. The 2023 tax year will see a rise in the standard deduction to $14,600 for individuals (up from $13,850) and $29,200 for married couples (up from $27,700).
Source (CNBC)
