UK Firms Face 4% Minimum-Wage Rise in 2026, Early Estimates Show
The Low Pay Commission said indicative calculations suggest that keeping the minimum wage for workers aged 21 and over at two-thirds of median earnings would require a 4.1% increase to £12.71 ($16.896) from April 2026.
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Yahoo
31 minutes ago
- Yahoo
Enterprises Push Ahead with AI-Powered Job Replacement Despite Risks
AI might be gunning for your job are increasing. Faced with pressure from stakeholders and competitors, many companies have pushed forward with slashing positions that they believe the tech is capable of handling. Last week, telecommunications firm Altice cut 1,000 employees, or 16% of its workforce, with AI creating redundancies among some jobs as the company cut costs. READ ALSO: Oracle Patent May Cut Latency in Edge Computing and Agents Gone Wild: How to Prevent AI Agent Sprawl Altice's decision is far from singular. Major firms like Klarna, UPS, Duolingo and Cisco have used AI to replace workers. Though the tech comes with its fair share of risks, companies are leveraging it to reduce labor costs, increase productivity and garner returns on their investments in the tech. Some may be feeling the squeeze of stakeholder scrutiny and competitive pressure, said Lisa Highfield, principal director of research and advisory services at HR research firm McLean & Co. 'When we see headlines such as 100 jobs laid off because of AI capabilities, competitors are bound to pay attention to that, and they don't want to fall behind that curve,' Highfield said. Questions remain, however, about whether AI is ready to become a member of the team rather than simply a tool. Highfield says it depends on the job and its specific tasks: Jobs involving 'repetitive, low-complexity knowledge tasks,' such as answering frequently asked questions, summarizing, entering data and scheduling, will likely be the first to go. Assistant and clerk positions, for example, may have a 'high exposure rate' to AI. Additionally, anything with 'clear rules and delineated answers,' such as writing templates or coding, is also ripe for automation. Many positions may have bits and pieces of their jobs automated, but 'not necessarily the entire job holistically,' said Highfield. 'Job security around that is really dependent on how much of your tasks are correlated to AI.' Enterprises seeking automation need to look within their specific industries and organizations to figure out where it's a good fit, said Highfield. 'We really need to understand how AI applies to our industry and the goals and tasks within an organization.' Plus, many jobs themselves are in a period of change in the wake of AI. In the same way that lamplighters were replaced with electricians and mathematicians no longer need to do long division by hand, new opportunities will be revealed as others fade. 'It's not just cutting jobs, it's what jobs are we creating,' said Highfield. However, enterprises also need to understand the risks associated with making the leap into AI, said Highfield. Along with potential brand and reputation damage, enterprises open themselves up to regulatory scrutiny and declining workforce morale. The tech itself still has issues, too, including a propensity for data security slip-ups, hallucination and bias, especially as tasks become more complex. Many companies may be better off starting with upskilling and augmentation of jobs, rather than replacing them with AI entirely, she said. 'There's a shift towards providing capabilities within the organization for our workers so that they can work with the technology.' This post first appeared on The Daily Upside. To receive cutting-edge insights into technology trends impacting CIOs and IT leaders, subscribe to our free CIO Upside newsletter. 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
Yahoo
36 minutes ago
- Yahoo
Stock market today: S&P 500 closes above 6,400 for first time as rate cut bets jump after CPI inflation report
The S&P 500 closed above 6,400 for the first time ever amid a broad stock market rally on Tuesday as Wall Street digested fresh inflation data. The Dow Jones Industrial Average (^DJI) rose about 1.1% or nearly 500 points. The S&P 500 (^GSPC) popped nearly 1.1%, while the tech-heavy Nasdaq (^IXIC) also added around 1.4%. Both the S&P 500 and Nasdaq Composite closed at record levels. The small-cap Russell 200 Index (^RUT) also soared amid rate-cut optimism, rising nearly 3% on the day. The latest data from the Bureau of Labor Statistics showed that "core" inflation, which excludes volatile food and energy costs, rose 3.1% over the past year in July, ahead of June's 2.9% increase. The reading indicated that rising goods inflation is no longer being offset by easing services inflation. But on a headline basis, the Consumer Price Index (CPI) increased 2.7% year over year, matching June and coming in softer than economists' expectations of a 2.8% rise. After the inflation report's release, bets jumped on a Fed rate cut in September. Around 94% of traders expect that outcome, according to the CME Group. The report was the first major piece of economic data to be released by the Bureau of Labor Statistics after Trump fired Erika McEntarfer as commissioner earlier this month, following the release of the July jobs report. Late Monday, Trump announced that he nominated E.J. Antoni, chief economist at the conservative Heritage Foundation, to lead the agency. Investors will get two more pulse checks on the state of the economy later this week, with the release of the Producer Price Index on Thursday and retail sales data on Friday. In corporate news, Intel (INTC) stock gained over 5% after CEO Lip-Bu Tan met with Trump, who had called for Tan's resignation just last week. After the meeting, Trump posted to Truth Social calling the meeting "a very interesting one" and hailing the CEO's "success and rise" as "an amazing story." Read more: The latest on Trump's tariffs More record highs The S&P 500 closed above 6,400 for the first time ever amid a broader market rally on Tuesday as Wall Street digested fresh inflation data and President Trump revealed his pick to head the Bureau of Labor Statistics. The Dow Jones Industrial Average (^DJI) rose about 1.1% or nearly 500 points. The S&P 500 (^GSPC) popped nearly 1.1%, while the tech-heavy Nasdaq (^IXIC) also added around 1.4%. Both the S&P 500 and Nasdaq Composite closed at their highest levels ever. Tariffs bring in record $27.7 billion in July as Trump calls haul 'incredible for our country' Yahoo Finance's Brett LoGiurato and Ben Werschkul report: Read more here. Russell 2000 sees biggest one-day rally since May Tuesday's Federal Reserve rate cut optimism has brought a widespread market rally. With investors now pricing in a 94% chance the Federal Reserve cuts interest rates in a September and a 52% chance the central bank lowers rates by three-quarters of a percentage point by the end of 2025, interest rate sensitive stock are catching a bid. The small-cap Russell 2000 Index ((^RUT)), which often swings heavily on days when rate cuts are in focus, is having its best session in roughly three months and is up more than 2.6%. The S&P 500's march to 6,400 is still all about large tech stocks The S&P 500 (^GSPC) is set to hit another record close on Tuesday and close above 6,400 for the first time ever. As has been the case for much of the bull market that started in October 2022, large-cap technology stocks are driving the market's latest leg higher. "Investors are back to their usual embrace of US large cap Tech stocks over large caps in general and the move is not yet overdone," DataTrek Research Co-Founder Jessica Rabe wrote in a Tuesday research note. Rabe highlighted that the top 20 stocks by market cap in the index have risen 40.6% since the bottom, far outpacing the benchmark index's 27.9% gain over the same time period. This means the top 20 holdings have helped pull the index higher, while the other 480 stocks have been "a net drag" on the index in relative terms. Nearly all of the stocks in the group that have outperformed the S&P 500 index — which includes Nvidia (NVDA), Microsoft (MSFT), Apple (AAPL), Amazon (AMZN), Alphabet (GOOGL, GOOG), Meta (META), Broadcom (AVGO), Tesla (TSLA), JPMorgan (JPM), Netflix (NFLX), Oracle (ORCL), and Palantir (PLTR) — have some sort of AI growth story attached to their stock story. "Ultimately, Tech companies that leverage disruptive innovation — such as gen AI — drive US equity returns," Rabe wrote. And when looking at the market's rebound on a sector basis there's still an AI tilt. Only Information Technology (XLK) and Industrials (XLI) have outperformed the index since the market bottom. Citi US equity strategist Scott Chronert, who recently raised his year-end S&P 500 target to 6,600, told Yahoo Finance the Industrials rally is really just an extension of the AI trade as those companies benefit from increased AI spending. "You're seeing this broader AI influence really permeate the index at a bigger level than just tech," Chronert said. Meta hits fresh record high, eyes $2 trillion market cap Meta (META) stock was a top performer among large-cap tech companies on Tuesday amid a broader market rally. Shares of the tech giant are up more than 3.5% and trading at an all-time high. The rally is a continuation of a boost seen following Meta's blowout second quarter earnings report less than two weeks ago. The stock has now reached a market capitalization of $1.99 trillion, just shy of passing the $2 trillion market cap mark for the first time ever. Also on Tuesday, CEO Mark Zuckerberg touted the success of Meta's newest social media platform, Threads. "Threads on the up and up — just passed 400M monthly actives on here 🔥," Zuckerberg wrote on Threads. Trump blasts Goldman over tariff forecasts, tells David Solomon to 'focus on being a DJ' President Trump called out Goldman Sachs' (GS) research team for a stock market forecast it made earlier in the year, which initially predicted the S&P 500 (^GSPC) would finish the year lower as the US economy entered recession following the initial "Liberation Day" tariff announcements. Specifically, Trump targeted Goldman Sachs CEO David Solomon in a Truth Social Post Tuesday while also taking a pass at the executive's hobby as a DJ. "David Solomon and Goldman Sachs refuse to give credit where credit is due," Trump wrote in a Tuesday post in Truth Social while lauding the revenue tariffs are bring in and a stock market that's hovering near record highs. "They made a bad prediction a long time ago on both the Market repercussion and the Tariffs themselves, and they were wrong, just like they are wrong about so much else. I think that David should go out and get himself a new Economist or, maybe, he ought to just focus on being a DJ, and not bother running a major Financial Institution." Goldman Sachs declined to comment on the post. Read more here. Ethereum treasury company Bitmine Immersion plans to issue $20 billion worth of stock to buy more ETH Yahoo Finance's Jake Conley reports: Bitmine Immersion Technologies (BMNR) stock popped as much as 5% at the opening bell on Tuesday after ethereum (ETH-USD) rose another 5% to trade north of $4,400 and the company announced plans to sell up to another $20 billion worth of stock to increase its holdings of the cryptocurrency. Bitmine, whose board is led by investor Tom Lee, announced Monday that its holdings of ETH stood at $4.96 billion, or a little over 1.15 million tokens, meaning the company owns roughly 1% of all tokens in circulation. The company's goal is to eventually acquire 5% of the world's outstanding ETH tokens. Monday's news pushed the stock up more than 14%. The stock is up over 600% this year. Read more here. Everybody's buying the stock market dips now When markets first bounced off the April bottom, there was a flurry of data showing that retail traders had led the dip-buying. Many market bulls argued that this left room for institutional buying to pour into the market in the coming months and continue to lead stocks higher. Following the worst day of the summer for stocks, when the market sold off after a weaker-than-expected July jobs report, that's exactly what happened. Data from Bank of America released on Tuesday showed net buys by institutional clients were the biggest since September 2024 and the 10th-largest in history since 2008. Those clients preferred large-cap technology stocks. The $4.3 billion poured into single stocks last week by BofA clients marked the largest weekly inflow in two years. One reason July's CPI data supports the case for Fed rate cuts At a high level, July's Consumer Price Index (CPI) had a bit of something for everyone. The latest data from the Bureau of Labor Statistics showed that "core" inflation, which excludes volatile food and energy costs, rose 3.1% over the past year in July, ahead of June's 2.9% increase. But on a headline basis, the Consumer Price Index (CPI) increased 2.7% on an annual basis in July, matching June's number and slower than economists' expectations of a 2.8% rise. In a note to clients following the release, Renaissance Marco's head of economics Neil Dutta zoomed in on the headline increase, which came in better than expected. "If tariffs are causing an inflation problem, then headline inflation rates ought to be accelerating," Dutta wrote. "However, overall inflation is not rising as rapidly as expected likely because nominal growth remains sluggish." Dutta points out that over the past six months, headline CPI has increased at a 1.9% annualized rate, the slowest pace seen since October 2024. In his view, July's CPI data "cements" a September interest rate cut from the Fed. Markets seem to agree for now, with traders pricing in a roughly 94% chance the Fed lowers rates in September, per the CME FedWatch Tool. "You might be thinking, why not a bigger upfront move," Dutta wrote. "Doves on the FOMC need to fight one battle at a time. There is a wide contingent of folks on the FOMC with tariff derangement syndrome, not seeing cuts at all this year. They won't be able to make the leap from no cuts to a large upfront move overnight." Stocks open higher US stocks moved higher on Tuesday as Wall Street digested fresh inflation data and President Trump revealed his pick to head the Bureau of Labor Statistics. The Dow Jones Industrial Average (^DJI) rose about 0.5%. The S&P 500 (^GSPC) popped 0.4%, while the tech-heavy Nasdaq (^IXIC) led the gains rising more than 0.5%. September Fed rate cut bets hold steady following CPI Following Tuesday's July inflation reading, market bets on a Federal Reserve interest rate cut held relatively steady. Investors are now pricing in a roughly a 90% chance the central bank cuts rates in September, up slightly from a 86% chance seen the day prior, per the CME FedWatch Tool. 'Core' price increases accelerate more than expected in July Price increases accelerated more than expected in July. The latest data from the Bureau of Labor Statistics showed that on a "core" basis, which strips out the more volatile costs of food and gas, consumer prices increased 3.1% over the prior year in July, an increase from June's 2.9% and above economists' forecast for 3%. Core prices climbed 0.3% over the prior month, ahead of June's 0.2% increase but in line with expectations. The headline Consumer Price Index (CPI) showed prices increased 2.7% in July, unchanged from the month prior and below the 2.8% economists had expected. On a month-over-month basis, prices increased 0.2%, lower than the 0.3% seen the month prior. Circle stock jumps on first earnings report since going public Circle (CRCL) posted higher revenue and reserve income on Tuesday in its first quarterly report since its IPO in June, as circulation of its stablecoin USDC (USDC-USD) spread. Circle stock rose 6% in premarket trading on Tuesday. Its total gains since going public are now 133%. Reuters reports: Read more here. US small business optimism rebounds, but uncertainty clouds outlook Reuters reports: Read more here. Good morning. Here's what's happening today. Economic data: NFIB Small Business Optimism (July); Consumer Price Index (July); Real average hourly earnings (July) Earnings: Circle (CRCL), Pony AI (PONY), On Holding (ONON), CoreWeave (CRWV), Rigetti (RGTI), Cava (CAVA) Here are some of the biggest stories you may have missed overnight and early this morning: July inflation report expected to show prices accelerated Media musical chairs are reshaping the sports landscape Earnings live: Circle pops on higher revenue in first earnings report Intel stock rises after Trump praises CEO's 'amazing story' China urges firms to shun Nvidia chips, trade truce extended Musk accuses Apple of unfairly favoring OpenAI on iPhone Google and IBM believe workable quantum computer is in sight US small business optimism up but uncertainty clouds outlook Switzerland wants binding Trump commitment on gold tariffs Cannabis stocks soar as President Trump considers reclassifying marijuana Tilray (TLRY) stock rose another 10% in premarket trading on Tuesday after soaring 41% on Monday amid speculation that President Trump may move to reclassify marijuana as a less dangerous drug. The Canadian cannabis company traded hands at over $1 per share for the first time since February. Despite a 60% gain in the past month, however, shares are still off by 30% for the year. Other cannabis stocks saw a major lift as well. Trulieve (TCNNF) gained 38% on Monday, Curaleaf (CURLF) was up 35%, Green Thumb Industries (GTBIF) added 19%, Aurora (ACB) increased 16%, and Canopy Growth (CGC) surged 26%. On Friday, the Wall Street Journal reported that Trump told donors at a New Jersey fundraiser he was considering making marijuana a Schedule III drug, which would ease restrictions on the substance. Trump said he will make a final decision in the coming weeks. "We're looking at reclassification and we'll make a determination over the next — I would say over the next few weeks, and that determination hopefully will be the right one," Trump said. "It's a very complicated subject." Intel is still a disaster Intel (INTC) is rallying premarket as Trump walked back his apparent hate for the company's CEO, Lip-Bu Tan, after meeting on Monday. Don't be fooled by the price action, however. This isn't the case like Apple (AAPL), where CEO Tim Cook kisses Trump's butt and the company is exempt from various tariffs. Intel is a fundamental disaster right now. People in the industry I talk to are unsure if the company will ever come back to a state of health, given 1) how fast AI chip development is occurring, and 2) how far behind Nvidia and AMD Intel is. Intel's statement on the meeting: "Earlier today, Mr. Tan had the honor of meeting with President Trump for a candid and constructive discussion on Intel's commitment to strengthening U.S. technology and manufacturing leadership. We appreciate the President's strong leadership to advance these critical priorities and look forward to working closely with him and his Administration as we restore this great American company." Japan's Nikkei hits record high on tariff relief, tech rally The Nikkei 225 (^N225) hit a record high Tuesday as easing US tariff fears boosted optimism, led by tech stocks and tariff relief. Bloomberg News reports: Read more here. More record highs The S&P 500 closed above 6,400 for the first time ever amid a broader market rally on Tuesday as Wall Street digested fresh inflation data and President Trump revealed his pick to head the Bureau of Labor Statistics. The Dow Jones Industrial Average (^DJI) rose about 1.1% or nearly 500 points. The S&P 500 (^GSPC) popped nearly 1.1%, while the tech-heavy Nasdaq (^IXIC) also added around 1.4%. Both the S&P 500 and Nasdaq Composite closed at their highest levels ever. The S&P 500 closed above 6,400 for the first time ever amid a broader market rally on Tuesday as Wall Street digested fresh inflation data and President Trump revealed his pick to head the Bureau of Labor Statistics. The Dow Jones Industrial Average (^DJI) rose about 1.1% or nearly 500 points. The S&P 500 (^GSPC) popped nearly 1.1%, while the tech-heavy Nasdaq (^IXIC) also added around 1.4%. Both the S&P 500 and Nasdaq Composite closed at their highest levels ever. Tariffs bring in record $27.7 billion in July as Trump calls haul 'incredible for our country' Yahoo Finance's Brett LoGiurato and Ben Werschkul report: Read more here. Yahoo Finance's Brett LoGiurato and Ben Werschkul report: Read more here. Russell 2000 sees biggest one-day rally since May Tuesday's Federal Reserve rate cut optimism has brought a widespread market rally. With investors now pricing in a 94% chance the Federal Reserve cuts interest rates in a September and a 52% chance the central bank lowers rates by three-quarters of a percentage point by the end of 2025, interest rate sensitive stock are catching a bid. The small-cap Russell 2000 Index ((^RUT)), which often swings heavily on days when rate cuts are in focus, is having its best session in roughly three months and is up more than 2.6%. Tuesday's Federal Reserve rate cut optimism has brought a widespread market rally. With investors now pricing in a 94% chance the Federal Reserve cuts interest rates in a September and a 52% chance the central bank lowers rates by three-quarters of a percentage point by the end of 2025, interest rate sensitive stock are catching a bid. The small-cap Russell 2000 Index ((^RUT)), which often swings heavily on days when rate cuts are in focus, is having its best session in roughly three months and is up more than 2.6%. The S&P 500's march to 6,400 is still all about large tech stocks The S&P 500 (^GSPC) is set to hit another record close on Tuesday and close above 6,400 for the first time ever. As has been the case for much of the bull market that started in October 2022, large-cap technology stocks are driving the market's latest leg higher. "Investors are back to their usual embrace of US large cap Tech stocks over large caps in general and the move is not yet overdone," DataTrek Research Co-Founder Jessica Rabe wrote in a Tuesday research note. Rabe highlighted that the top 20 stocks by market cap in the index have risen 40.6% since the bottom, far outpacing the benchmark index's 27.9% gain over the same time period. This means the top 20 holdings have helped pull the index higher, while the other 480 stocks have been "a net drag" on the index in relative terms. Nearly all of the stocks in the group that have outperformed the S&P 500 index — which includes Nvidia (NVDA), Microsoft (MSFT), Apple (AAPL), Amazon (AMZN), Alphabet (GOOGL, GOOG), Meta (META), Broadcom (AVGO), Tesla (TSLA), JPMorgan (JPM), Netflix (NFLX), Oracle (ORCL), and Palantir (PLTR) — have some sort of AI growth story attached to their stock story. "Ultimately, Tech companies that leverage disruptive innovation — such as gen AI — drive US equity returns," Rabe wrote. And when looking at the market's rebound on a sector basis there's still an AI tilt. Only Information Technology (XLK) and Industrials (XLI) have outperformed the index since the market bottom. Citi US equity strategist Scott Chronert, who recently raised his year-end S&P 500 target to 6,600, told Yahoo Finance the Industrials rally is really just an extension of the AI trade as those companies benefit from increased AI spending. "You're seeing this broader AI influence really permeate the index at a bigger level than just tech," Chronert said. The S&P 500 (^GSPC) is set to hit another record close on Tuesday and close above 6,400 for the first time ever. As has been the case for much of the bull market that started in October 2022, large-cap technology stocks are driving the market's latest leg higher. "Investors are back to their usual embrace of US large cap Tech stocks over large caps in general and the move is not yet overdone," DataTrek Research Co-Founder Jessica Rabe wrote in a Tuesday research note. Rabe highlighted that the top 20 stocks by market cap in the index have risen 40.6% since the bottom, far outpacing the benchmark index's 27.9% gain over the same time period. This means the top 20 holdings have helped pull the index higher, while the other 480 stocks have been "a net drag" on the index in relative terms. Nearly all of the stocks in the group that have outperformed the S&P 500 index — which includes Nvidia (NVDA), Microsoft (MSFT), Apple (AAPL), Amazon (AMZN), Alphabet (GOOGL, GOOG), Meta (META), Broadcom (AVGO), Tesla (TSLA), JPMorgan (JPM), Netflix (NFLX), Oracle (ORCL), and Palantir (PLTR) — have some sort of AI growth story attached to their stock story. "Ultimately, Tech companies that leverage disruptive innovation — such as gen AI — drive US equity returns," Rabe wrote. And when looking at the market's rebound on a sector basis there's still an AI tilt. Only Information Technology (XLK) and Industrials (XLI) have outperformed the index since the market bottom. Citi US equity strategist Scott Chronert, who recently raised his year-end S&P 500 target to 6,600, told Yahoo Finance the Industrials rally is really just an extension of the AI trade as those companies benefit from increased AI spending. "You're seeing this broader AI influence really permeate the index at a bigger level than just tech," Chronert said. Meta hits fresh record high, eyes $2 trillion market cap Meta (META) stock was a top performer among large-cap tech companies on Tuesday amid a broader market rally. Shares of the tech giant are up more than 3.5% and trading at an all-time high. The rally is a continuation of a boost seen following Meta's blowout second quarter earnings report less than two weeks ago. The stock has now reached a market capitalization of $1.99 trillion, just shy of passing the $2 trillion market cap mark for the first time ever. Also on Tuesday, CEO Mark Zuckerberg touted the success of Meta's newest social media platform, Threads. "Threads on the up and up — just passed 400M monthly actives on here 🔥," Zuckerberg wrote on Threads. Meta (META) stock was a top performer among large-cap tech companies on Tuesday amid a broader market rally. Shares of the tech giant are up more than 3.5% and trading at an all-time high. The rally is a continuation of a boost seen following Meta's blowout second quarter earnings report less than two weeks ago. The stock has now reached a market capitalization of $1.99 trillion, just shy of passing the $2 trillion market cap mark for the first time ever. Also on Tuesday, CEO Mark Zuckerberg touted the success of Meta's newest social media platform, Threads. "Threads on the up and up — just passed 400M monthly actives on here 🔥," Zuckerberg wrote on Threads. Trump blasts Goldman over tariff forecasts, tells David Solomon to 'focus on being a DJ' President Trump called out Goldman Sachs' (GS) research team for a stock market forecast it made earlier in the year, which initially predicted the S&P 500 (^GSPC) would finish the year lower as the US economy entered recession following the initial "Liberation Day" tariff announcements. Specifically, Trump targeted Goldman Sachs CEO David Solomon in a Truth Social Post Tuesday while also taking a pass at the executive's hobby as a DJ. "David Solomon and Goldman Sachs refuse to give credit where credit is due," Trump wrote in a Tuesday post in Truth Social while lauding the revenue tariffs are bring in and a stock market that's hovering near record highs. "They made a bad prediction a long time ago on both the Market repercussion and the Tariffs themselves, and they were wrong, just like they are wrong about so much else. I think that David should go out and get himself a new Economist or, maybe, he ought to just focus on being a DJ, and not bother running a major Financial Institution." Goldman Sachs declined to comment on the post. Read more here. President Trump called out Goldman Sachs' (GS) research team for a stock market forecast it made earlier in the year, which initially predicted the S&P 500 (^GSPC) would finish the year lower as the US economy entered recession following the initial "Liberation Day" tariff announcements. Specifically, Trump targeted Goldman Sachs CEO David Solomon in a Truth Social Post Tuesday while also taking a pass at the executive's hobby as a DJ. "David Solomon and Goldman Sachs refuse to give credit where credit is due," Trump wrote in a Tuesday post in Truth Social while lauding the revenue tariffs are bring in and a stock market that's hovering near record highs. "They made a bad prediction a long time ago on both the Market repercussion and the Tariffs themselves, and they were wrong, just like they are wrong about so much else. I think that David should go out and get himself a new Economist or, maybe, he ought to just focus on being a DJ, and not bother running a major Financial Institution." Goldman Sachs declined to comment on the post. Read more here. Ethereum treasury company Bitmine Immersion plans to issue $20 billion worth of stock to buy more ETH Yahoo Finance's Jake Conley reports: Bitmine Immersion Technologies (BMNR) stock popped as much as 5% at the opening bell on Tuesday after ethereum (ETH-USD) rose another 5% to trade north of $4,400 and the company announced plans to sell up to another $20 billion worth of stock to increase its holdings of the cryptocurrency. Bitmine, whose board is led by investor Tom Lee, announced Monday that its holdings of ETH stood at $4.96 billion, or a little over 1.15 million tokens, meaning the company owns roughly 1% of all tokens in circulation. The company's goal is to eventually acquire 5% of the world's outstanding ETH tokens. Monday's news pushed the stock up more than 14%. The stock is up over 600% this year. Read more here. Yahoo Finance's Jake Conley reports: Bitmine Immersion Technologies (BMNR) stock popped as much as 5% at the opening bell on Tuesday after ethereum (ETH-USD) rose another 5% to trade north of $4,400 and the company announced plans to sell up to another $20 billion worth of stock to increase its holdings of the cryptocurrency. Bitmine, whose board is led by investor Tom Lee, announced Monday that its holdings of ETH stood at $4.96 billion, or a little over 1.15 million tokens, meaning the company owns roughly 1% of all tokens in circulation. The company's goal is to eventually acquire 5% of the world's outstanding ETH tokens. Monday's news pushed the stock up more than 14%. The stock is up over 600% this year. Read more here. Everybody's buying the stock market dips now When markets first bounced off the April bottom, there was a flurry of data showing that retail traders had led the dip-buying. Many market bulls argued that this left room for institutional buying to pour into the market in the coming months and continue to lead stocks higher. Following the worst day of the summer for stocks, when the market sold off after a weaker-than-expected July jobs report, that's exactly what happened. Data from Bank of America released on Tuesday showed net buys by institutional clients were the biggest since September 2024 and the 10th-largest in history since 2008. Those clients preferred large-cap technology stocks. The $4.3 billion poured into single stocks last week by BofA clients marked the largest weekly inflow in two years. When markets first bounced off the April bottom, there was a flurry of data showing that retail traders had led the dip-buying. Many market bulls argued that this left room for institutional buying to pour into the market in the coming months and continue to lead stocks higher. Following the worst day of the summer for stocks, when the market sold off after a weaker-than-expected July jobs report, that's exactly what happened. Data from Bank of America released on Tuesday showed net buys by institutional clients were the biggest since September 2024 and the 10th-largest in history since 2008. Those clients preferred large-cap technology stocks. The $4.3 billion poured into single stocks last week by BofA clients marked the largest weekly inflow in two years. One reason July's CPI data supports the case for Fed rate cuts At a high level, July's Consumer Price Index (CPI) had a bit of something for everyone. The latest data from the Bureau of Labor Statistics showed that "core" inflation, which excludes volatile food and energy costs, rose 3.1% over the past year in July, ahead of June's 2.9% increase. But on a headline basis, the Consumer Price Index (CPI) increased 2.7% on an annual basis in July, matching June's number and slower than economists' expectations of a 2.8% rise. In a note to clients following the release, Renaissance Marco's head of economics Neil Dutta zoomed in on the headline increase, which came in better than expected. "If tariffs are causing an inflation problem, then headline inflation rates ought to be accelerating," Dutta wrote. "However, overall inflation is not rising as rapidly as expected likely because nominal growth remains sluggish." Dutta points out that over the past six months, headline CPI has increased at a 1.9% annualized rate, the slowest pace seen since October 2024. In his view, July's CPI data "cements" a September interest rate cut from the Fed. Markets seem to agree for now, with traders pricing in a roughly 94% chance the Fed lowers rates in September, per the CME FedWatch Tool. "You might be thinking, why not a bigger upfront move," Dutta wrote. "Doves on the FOMC need to fight one battle at a time. There is a wide contingent of folks on the FOMC with tariff derangement syndrome, not seeing cuts at all this year. They won't be able to make the leap from no cuts to a large upfront move overnight." At a high level, July's Consumer Price Index (CPI) had a bit of something for everyone. The latest data from the Bureau of Labor Statistics showed that "core" inflation, which excludes volatile food and energy costs, rose 3.1% over the past year in July, ahead of June's 2.9% increase. But on a headline basis, the Consumer Price Index (CPI) increased 2.7% on an annual basis in July, matching June's number and slower than economists' expectations of a 2.8% rise. In a note to clients following the release, Renaissance Marco's head of economics Neil Dutta zoomed in on the headline increase, which came in better than expected. "If tariffs are causing an inflation problem, then headline inflation rates ought to be accelerating," Dutta wrote. "However, overall inflation is not rising as rapidly as expected likely because nominal growth remains sluggish." Dutta points out that over the past six months, headline CPI has increased at a 1.9% annualized rate, the slowest pace seen since October 2024. In his view, July's CPI data "cements" a September interest rate cut from the Fed. Markets seem to agree for now, with traders pricing in a roughly 94% chance the Fed lowers rates in September, per the CME FedWatch Tool. "You might be thinking, why not a bigger upfront move," Dutta wrote. "Doves on the FOMC need to fight one battle at a time. There is a wide contingent of folks on the FOMC with tariff derangement syndrome, not seeing cuts at all this year. They won't be able to make the leap from no cuts to a large upfront move overnight." Stocks open higher US stocks moved higher on Tuesday as Wall Street digested fresh inflation data and President Trump revealed his pick to head the Bureau of Labor Statistics. The Dow Jones Industrial Average (^DJI) rose about 0.5%. The S&P 500 (^GSPC) popped 0.4%, while the tech-heavy Nasdaq (^IXIC) led the gains rising more than 0.5%. US stocks moved higher on Tuesday as Wall Street digested fresh inflation data and President Trump revealed his pick to head the Bureau of Labor Statistics. The Dow Jones Industrial Average (^DJI) rose about 0.5%. The S&P 500 (^GSPC) popped 0.4%, while the tech-heavy Nasdaq (^IXIC) led the gains rising more than 0.5%. September Fed rate cut bets hold steady following CPI Following Tuesday's July inflation reading, market bets on a Federal Reserve interest rate cut held relatively steady. Investors are now pricing in a roughly a 90% chance the central bank cuts rates in September, up slightly from a 86% chance seen the day prior, per the CME FedWatch Tool. Following Tuesday's July inflation reading, market bets on a Federal Reserve interest rate cut held relatively steady. Investors are now pricing in a roughly a 90% chance the central bank cuts rates in September, up slightly from a 86% chance seen the day prior, per the CME FedWatch Tool. 'Core' price increases accelerate more than expected in July Price increases accelerated more than expected in July. The latest data from the Bureau of Labor Statistics showed that on a "core" basis, which strips out the more volatile costs of food and gas, consumer prices increased 3.1% over the prior year in July, an increase from June's 2.9% and above economists' forecast for 3%. Core prices climbed 0.3% over the prior month, ahead of June's 0.2% increase but in line with expectations. The headline Consumer Price Index (CPI) showed prices increased 2.7% in July, unchanged from the month prior and below the 2.8% economists had expected. On a month-over-month basis, prices increased 0.2%, lower than the 0.3% seen the month prior. Price increases accelerated more than expected in July. The latest data from the Bureau of Labor Statistics showed that on a "core" basis, which strips out the more volatile costs of food and gas, consumer prices increased 3.1% over the prior year in July, an increase from June's 2.9% and above economists' forecast for 3%. Core prices climbed 0.3% over the prior month, ahead of June's 0.2% increase but in line with expectations. The headline Consumer Price Index (CPI) showed prices increased 2.7% in July, unchanged from the month prior and below the 2.8% economists had expected. On a month-over-month basis, prices increased 0.2%, lower than the 0.3% seen the month prior. Circle stock jumps on first earnings report since going public Circle (CRCL) posted higher revenue and reserve income on Tuesday in its first quarterly report since its IPO in June, as circulation of its stablecoin USDC (USDC-USD) spread. Circle stock rose 6% in premarket trading on Tuesday. Its total gains since going public are now 133%. Reuters reports: Read more here. Circle (CRCL) posted higher revenue and reserve income on Tuesday in its first quarterly report since its IPO in June, as circulation of its stablecoin USDC (USDC-USD) spread. Circle stock rose 6% in premarket trading on Tuesday. Its total gains since going public are now 133%. Reuters reports: Read more here. US small business optimism rebounds, but uncertainty clouds outlook Reuters reports: Read more here. Reuters reports: Read more here. Good morning. Here's what's happening today. Economic data: NFIB Small Business Optimism (July); Consumer Price Index (July); Real average hourly earnings (July) Earnings: Circle (CRCL), Pony AI (PONY), On Holding (ONON), CoreWeave (CRWV), Rigetti (RGTI), Cava (CAVA) Here are some of the biggest stories you may have missed overnight and early this morning: July inflation report expected to show prices accelerated Media musical chairs are reshaping the sports landscape Earnings live: Circle pops on higher revenue in first earnings report Intel stock rises after Trump praises CEO's 'amazing story' China urges firms to shun Nvidia chips, trade truce extended Musk accuses Apple of unfairly favoring OpenAI on iPhone Google and IBM believe workable quantum computer is in sight US small business optimism up but uncertainty clouds outlook Switzerland wants binding Trump commitment on gold tariffs Economic data: NFIB Small Business Optimism (July); Consumer Price Index (July); Real average hourly earnings (July) Earnings: Circle (CRCL), Pony AI (PONY), On Holding (ONON), CoreWeave (CRWV), Rigetti (RGTI), Cava (CAVA) Here are some of the biggest stories you may have missed overnight and early this morning: July inflation report expected to show prices accelerated Media musical chairs are reshaping the sports landscape Earnings live: Circle pops on higher revenue in first earnings report Intel stock rises after Trump praises CEO's 'amazing story' China urges firms to shun Nvidia chips, trade truce extended Musk accuses Apple of unfairly favoring OpenAI on iPhone Google and IBM believe workable quantum computer is in sight US small business optimism up but uncertainty clouds outlook Switzerland wants binding Trump commitment on gold tariffs Cannabis stocks soar as President Trump considers reclassifying marijuana Tilray (TLRY) stock rose another 10% in premarket trading on Tuesday after soaring 41% on Monday amid speculation that President Trump may move to reclassify marijuana as a less dangerous drug. The Canadian cannabis company traded hands at over $1 per share for the first time since February. Despite a 60% gain in the past month, however, shares are still off by 30% for the year. Other cannabis stocks saw a major lift as well. Trulieve (TCNNF) gained 38% on Monday, Curaleaf (CURLF) was up 35%, Green Thumb Industries (GTBIF) added 19%, Aurora (ACB) increased 16%, and Canopy Growth (CGC) surged 26%. On Friday, the Wall Street Journal reported that Trump told donors at a New Jersey fundraiser he was considering making marijuana a Schedule III drug, which would ease restrictions on the substance. Trump said he will make a final decision in the coming weeks. "We're looking at reclassification and we'll make a determination over the next — I would say over the next few weeks, and that determination hopefully will be the right one," Trump said. "It's a very complicated subject." Tilray (TLRY) stock rose another 10% in premarket trading on Tuesday after soaring 41% on Monday amid speculation that President Trump may move to reclassify marijuana as a less dangerous drug. The Canadian cannabis company traded hands at over $1 per share for the first time since February. Despite a 60% gain in the past month, however, shares are still off by 30% for the year. Other cannabis stocks saw a major lift as well. Trulieve (TCNNF) gained 38% on Monday, Curaleaf (CURLF) was up 35%, Green Thumb Industries (GTBIF) added 19%, Aurora (ACB) increased 16%, and Canopy Growth (CGC) surged 26%. On Friday, the Wall Street Journal reported that Trump told donors at a New Jersey fundraiser he was considering making marijuana a Schedule III drug, which would ease restrictions on the substance. Trump said he will make a final decision in the coming weeks. "We're looking at reclassification and we'll make a determination over the next — I would say over the next few weeks, and that determination hopefully will be the right one," Trump said. "It's a very complicated subject." Intel is still a disaster Intel (INTC) is rallying premarket as Trump walked back his apparent hate for the company's CEO, Lip-Bu Tan, after meeting on Monday. Don't be fooled by the price action, however. This isn't the case like Apple (AAPL), where CEO Tim Cook kisses Trump's butt and the company is exempt from various tariffs. Intel is a fundamental disaster right now. People in the industry I talk to are unsure if the company will ever come back to a state of health, given 1) how fast AI chip development is occurring, and 2) how far behind Nvidia and AMD Intel is. Intel's statement on the meeting: "Earlier today, Mr. Tan had the honor of meeting with President Trump for a candid and constructive discussion on Intel's commitment to strengthening U.S. technology and manufacturing leadership. We appreciate the President's strong leadership to advance these critical priorities and look forward to working closely with him and his Administration as we restore this great American company." Intel (INTC) is rallying premarket as Trump walked back his apparent hate for the company's CEO, Lip-Bu Tan, after meeting on Monday. Don't be fooled by the price action, however. This isn't the case like Apple (AAPL), where CEO Tim Cook kisses Trump's butt and the company is exempt from various tariffs. Intel is a fundamental disaster right now. People in the industry I talk to are unsure if the company will ever come back to a state of health, given 1) how fast AI chip development is occurring, and 2) how far behind Nvidia and AMD Intel is. Intel's statement on the meeting: "Earlier today, Mr. Tan had the honor of meeting with President Trump for a candid and constructive discussion on Intel's commitment to strengthening U.S. technology and manufacturing leadership. We appreciate the President's strong leadership to advance these critical priorities and look forward to working closely with him and his Administration as we restore this great American company." Japan's Nikkei hits record high on tariff relief, tech rally The Nikkei 225 (^N225) hit a record high Tuesday as easing US tariff fears boosted optimism, led by tech stocks and tariff relief. Bloomberg News reports: Read more here. The Nikkei 225 (^N225) hit a record high Tuesday as easing US tariff fears boosted optimism, led by tech stocks and tariff relief. Bloomberg News reports: Read more here. 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
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41 minutes ago
- Yahoo
Some good inflation news: Car insurance is falling back in line
Economists are busy hunting for signs of tariff-induced price hikes in the monthly inflation data. They may be overlooking some good news, which is that a surge in the cost of car insurance is finally abating. The cost of owning a car has soared during the last few years, with drivers absorbing hits from all angles. The average cost of a new car is now $49,000, and Trump's tariffs will likely push that well above $50,000. As new cars get costlier, so do used cars. Fancy new technology and other factors, meanwhile, have raised the cost of parts, repairs, and maintenance. But the biggest jump has been in the cost of insurance, up 60% during the last five years, to an average monthly premium of about $213. A bill that was once an afterthought now totals nearly $3,000 per year, and a lot more for some vehicles and drivers. Read more: The cheapest car insurance in the US in 2025 Relief is on the horizon. In April 2024, the annual rate of car inflation peaked at 23%. It's now at a much tamer 5.3%, and the lower annual price hikes are likely to stick. Insurance is different from most other products and services people buy. Drivers buy insurance only once or twice per year, with the monthly premium set for the duration of the policy. Insurers set premiums based on car-pricing data that also has a lag. They must also deal with regulators who may resist premium hikes that are too steep. The recent surge in car insurance premiums dates to the first days of the COVID pandemic in 2020. Supply chain disruptions, such as a lack of semiconductors, sent new car prices higher, with used car prices soaring as buyers priced out of the new market shopped used. That means the replacement cost of a vehicle totaled in a wreck went way up. All the digital technology on new cars, such as cameras, sensors, and processors, raises the cost of repairs, as well. At the same time, global warming is causing more severe weather that leaves more cars destroyed in floods and storms. And for reasons researchers don't fully understand, crashes have been getting more of those factors push insurers' costs higher, with the industry as a whole enduring several years of net underwriting losses on autos. So insurers have been raising their own prices to get back in the black. That simply takes time, since they can only change their prices once or twice per year. And in some cases, regulators force them to spread premium hikes over several years to spare consumers too much pain all at once. After big jumps from 2021 to 2023, prices for cars and car parts have been relatively stable. Insurance prices flattening out too suggests most insurers have raised premiums by the amount they consider necessary. Insurers can try to price gouge and push rates needlessly high, but it's pretty easy for most consumers to switch carriers, which helps keep premiums in check. Trump's tariffs could reverse the improving trend. They'll make parts more expensive, for example, raising repair bills that insurers will have to foot. That will ultimately trickle down to policyholders through higher rates. But that may be around the next bend, not quite coming into view yet. Rick Newman is a senior columnist for Yahoo Finance. Follow him on Bluesky and X: @rickjnewman. Click here for political news related to business and money policies that will shape tomorrow's stock prices. Sign in to access your portfolio
