White House downplays U.S. credit downgrade as business titans warn of economic trouble ahead
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Associated Press
4 minutes ago
- Associated Press
Asian shares are mixed after days of gains driven by hopes for US rate cuts
MANILA, Philippines (AP) — Asian shares were mixed on Thursday after days of gains driven by hopes for lower U.S. interest rates, while U.S. futures slipped. In Tokyo, the Nikkei 225 fell 1.4% to 42,657.94 as investors sold to lock in recent gains that have taken the benchmark to all-time records. The Japanese yen rose against the dollar after U.S. Treasury Secretary Scott Bessent said in an interview with Bloomberg that Japan was 'behind the curve' in monetary tightening. He was referring to the slow pace if increases in Japan's near-zero interest rates. Low interest rates tend to make the yen weaker against the dollar, giving Japanese exporters a cost advantage in overseas sales. The dollar fell to 146.55 Japanese yen early Thursday, down from 147.39 yen. The euro fell to $1.1703 from $1.1705. In Chinese markets, Hong Kong's Hang Seng index shed less than 0.1% to 25,597.85, while the Shanghai composite index gained 0.2% to 3,690.88. South Korea's Kospi slid 0.3% to 3,215.61, while Australia's S&P ASX 200 index added 0.5% to 8,871.80. Taiwan's TAIEX fell 0.4%, while India's Sensex edged 0.1% higher. 'Asian markets opened today like a party that ran out of champagne before midnight — the music still playing, but the dance floor thinning out,' Stephen Innes of SPI Asset Management said in a commentary. The futures for the S&P 500 and the Dow Jones Industrial Average were down less than 0.1%. On Wednesday, U.S. stocks ticked higher, extending a global rally fueled by hopes the Federal Reserve will cut U.S. interest rates. The S&P 500 rose 0.3% to 6,466.58, coming off its latest all-time high. The Dow climbed 1% to 44,922.27, while the Nasdaq composite added 0.1% to its own record set the day before, closing at 21,713.14. Treasury yields eased in the bond market in anticipation that the Fed will cut its main interest rate for the first time this year at its next meeting in September. Lower rates can boost investment prices and the economy by making it cheaper for U.S. households and businesses to borrow to buy houses, cars or equipment, though they risk worsening inflation. Stocks of companies on Wall Street that could benefit most from lower interest rates helped lead the way. PulteGroup climbed 5.4%, and Lennar rose 5.2% as part of a broad rally for homebuilders and others in the housing industry. Lower rates could make mortgages cheaper to get, which could spur more buying. The cryptocurrency exchange company Bullish ended its debut day of trading after an initial public offering of more than $10 billion with a gain of nearly 84% to $68 a share. The hopes for lower interest rates are helping to drown out criticism that the U.S. stock market has broadly grown too expensive after its big leap since hitting a low in April. President Donald Trump has angrily been calling for cuts to help the economy, often insulting the Fed Chair Jerome Powell while doing so. But the Fed has hesitated of the possibility that Trump's sweeping higher tariffs could make inflation much worse. Fed officials have said they want to see more fresh data about inflation before moving. On Thursday, a report will show how bad inflation was at the wholesale level across the United States. Economists expect it to show inflation accelerated a touch to 2.4% in July from 2.3% in June. In other dealings early Thursday, U.S. benchmark crude rose 24 cents to $62.89 per barrel. Brent crude, the international standard, added 27 cents to $65.90 per barrel. ___ AP Business Writer Stan Choe contributed.
Bloomberg
7 minutes ago
- Bloomberg
Where Is Bessent Pulling These Rate Models From?
To get John Authers' newsletter delivered directly to your inbox, sign up here. Scott Bessent, the US Treasury secretary, made big news on Blooomberg Surveillance. He told the televised audience that 'if you look at any model' for the fed funds rate, it suggests that 'we should probably be 150, 175 basis points lower.' This is breathtaking. With the current effective fed funds rate at 4.33%, he is suggesting that it should be about 2.6%. Over the last 70 years, the rate has never been that low with inflation as high as it currently (with the core reading above 3%). So apparently 'any' model now shows that US monetary policy has been misguided throughout that entire period and needs to be changed:
Yahoo
18 minutes ago
- Yahoo
Clover Health, Surgery Partners, Illumina, Bruker, and Supernus Pharmaceuticals Shares Skyrocket, What You Need To Know
What Happened? A number of stocks jumped in the afternoon session after markets continued to rally amid growing speculation of an impending interest rate cut by the Federal Reserve. Following a favorable Consumer Price Index (CPI) report, investors are increasingly betting on a rate reduction next month, a sentiment amplified by U.S. Treasury Secretary Scott Bessent's call for a significant cut. This has fueled a 'risk-on' environment across Wall Street. Lower interest rates are typically beneficial for growth-oriented sectors like healthcare, as they reduce the cost of borrowing for research and innovation and increase the present value of future earnings. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Among others, the following stocks were impacted: Health Insurance Providers company Clover Health (NASDAQ:CLOV) jumped 5.8%. Is now the time to buy Clover Health? Access our full analysis report here, it's free. Outpatient & Specialty Care company Surgery Partners (NASDAQ:SGRY) jumped 3.2%. Is now the time to buy Surgery Partners? Access our full analysis report here, it's free. Genomics & Sequencing company Illumina (NASDAQ:ILMN) jumped 3.2%. Is now the time to buy Illumina? Access our full analysis report here, it's free. Research Tools & Consumables company Bruker (NASDAQ:BRKR) jumped 6.1%. Is now the time to buy Bruker? Access our full analysis report here, it's free. Branded Pharmaceuticals company Supernus Pharmaceuticals (NASDAQ:SUPN) jumped 3.1%. Is now the time to buy Supernus Pharmaceuticals? Access our full analysis report here, it's free. Zooming In On Bruker (BRKR) Bruker's shares are very volatile and have had 22 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. Bruker is down 41.3% since the beginning of the year, and at $34.54 per share, it is trading 51.1% below its 52-week high of $70.67 from September 2024. Investors who bought $1,000 worth of Bruker's shares 5 years ago would now be looking at an investment worth $785.18. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
