The following news items are the most crucial for investors to know before their trading day begins:
1. A 16-year high
Bonds extended their current upward trend on Thursday, when the benchmark 10-year Treasury yield surpassed 5% for the first time in 16 years, or since July 20, 2007. The yield had slightly decreased as of Friday morning, last trading at roughly 4.935%, although stock futures fell as a result of the remarkable bond action. The Dow Jones Industrial Average futures experienced a 0.2% Friday decline. S&P 500 futures down by 0.3%, while Nasdaq 100 futures decreased by around 0.4%.
2. Large bank layoffs
Nowadays, the largest American banks are a little smaller, at least in terms of their employee bases. According to an analysis by CNBC’s Hugh Son, Bank of America, Morgan Stanley, Wells Fargo, and Goldman Sachs all reduced the number of employees on their payrolls this year by between 2% and 5%. Following a hiring boom on Wall Street, the cuts, totaling 20,000 jobs, have been made.
3. Are you tired yet?
Inflation is still — still! — too high, according to Fed Chairman Jerome Powell, who added that the institution would remain “resolute” in its commitment to achieving 2%. However, the Fed regards its monetary policy as effective. The Fed’s aggressive rate hike policy has caused the annual rate to fall to 3.7% and the pace of monthly hikes to reduce.
4. “Global caution”
In view of escalating conflict in the Middle East and beyond as the Israel-Hamas conflict near the two-week mark, the U.S. State Department on Thursday issued a global caution advisory. Due to the “potential for terrorist attacks, demonstrations, or violent activities against U.S. people and interests,” the government advised Americans travelling abroad to take extra precautions.
5. She in spotlight
Shein, a fast-fashion retailer, is navigating a few obstacles on the route to what is anticipated to be an initial public offering (IPO). According to CNBC’s Gabrielle Fonrouge, the company, a rising Amazon rival, is under scrutiny for its ties to China, environmental effect, potential copyright breaches, and the use of forced labour by the Uyghur ethnic group in its supply chain. These issues are in addition to the company’s use of labour from the Xinjiang region of China across its supply chain. If and when Shein decides to list on American exchanges, those queries, in the words of Matt Kennedy, senior IPO market strategist for Renaissance Capital, “may muddle the value proposition”: “IPO investors right now want to see a straightforward tale.”