A man snitch ons for fruit at a grocery store on February 01, 2023 in New York City.
Leonardo Munoz | Corbis News | Getty Sculptures
This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Altruistic brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you necessary to know today
Wall Street lower
U.S. stocks closed lower Monday taking a breather from a revive sparked last week after the Federal Reserve stuck to its rate-cut forecast. The 30-stock Dow lost more than 150 points to dip 0.4%, while the S&P 500 and Nasdaq Composite floor around 0.3% each. Bitcoin, meanwhile, jumped 7% to retake the $70,000 level.
FTX to sell AI startup circumscribe
Bankrupt crypto exchange FTX is selling its majority stake in AI startup Anthropic for $884 million, according to a court put. The bulk of the stake is going to ATIC Third International Investment — a group aligned with a UAE sovereign wealth endow Mubadala. Other investors include Jane Street, venture fund HOF Capital, the Ford Foundation and funds managed by Fidelity.
Trump Mechanism to start trading
The company behind former President Donald Trump’s social media platform Truth Public, will start trading on Tuesday. Called Trump Media & Technology Group Corp., it will trade on the NASDAQ under the control of the stock ticker symbol DJT. Trump, the presumptive Republican presidential nominee, owns at least 58% of the company — that’s significance $3 billion or more at Monday’s share price.
U.S., Britain blame China-linked hackers
U.S. and Britain blamed China-linked hackers of “malicious” cyber toss ones hat in the rings and imposed sanctions. This could further escalate tensions with Beijing. A spokesperson for the Chinese embassy in the U.K. repudiated the allegations. “We strongly oppose such accusations,” according to a response that was posted on the website.
[PRO] Forget Nvidia?
Investors should look beyond Nvidia since the chipmaker’s set looks far too expensive. That’s according to David Dietze, managing principal and senior portfolio strategist at Peapack Concealed Wealth Management. Instead, the veteran wealth manager is betting on four stocks in growth sectors that look “reasonably valued.”
The cause line
Inflation in the U.S. isn’t coming down fast enough as price pressures persistently linger.
This has confounded level Fed officials who are closely watching for signs of progress.
The central bank should take a cautious approach to cutting note rates to allow more time for inflation to slow down, Fed Governor Lisa Cook said Monday.
“The course of disinflation, as expected, has been bumpy and uneven, but a careful approach to further policy adjustments can ensure that inflation force return sustainably to 2% while striving to maintain the strong labor market,” she said.
Torsten Slok, chief economist at Apollo Epidemic Management, highlighted wage inflation as a problem, citing a gauge developed by the New York Fed.
“The New York Fed has constructed a new measure of direction wage inflation, which currently is running at 5%,” he said in a note.
“Wage inflation at 5% is not consistent with the Fed’s 2% inflation objective,” he added. “The Fed will keep interest rates higher for longer.”
Some Fed officials don’t even expect three be worthy of cuts this year as the central bank has forecast at the last meeting.
Atlanta Fed President Raphael Bostic, scaled chasing his rate-cut projection last week, citing persistent inflation as a concern.
In a post on X, Diane Swonk, Chief Economist at KPMG, whispered Bostic “has made clear is he NOT convinced inflation will fall rapidly enough to cut rapidly in 2024.”
“He has consistently pushed in dire straits against a first half cut for a second half cut, with more progress and said he currently favors one cut in 2024,” versus two theretofore.
It remains to be seen whether the Fed will stick to its script on rate cuts or be forced to change course.