Stock watchers pin hopes on larger Fed rate cut as jobs cool
US consumer spending solid in July, inflation steady
Data from the U.S. Commerce Department showed the economy remained on firm ground in July.
September’s notorious volatility has once again gripped the stock market as cooling jobs data spurred a Wall Street decline.
In August, the U.S. economy added 142,000 jobs — a rebound from July’s disappointing 89,000 figure but below expectations of 160,000 and significantly lower than the average pace of 202,000 over the past year.
While the unemployment rate edged down slightly from 4.3% to 4.2% as expected, and wage growth exceeded estimates, these figures did little to sway market sentiment as other labor market data released during the week also failed to meet expectations.
As a result, traders are now placing a higher probability on the Federal Reserve cutting interest rates by 50 basis points rather than 25 basis points in September.
More: U-M forecast says Michigan’s economy at a crossroads: What the next two years may bring
Semiconductors were the worst-performing sector on Wall Street, hit by several headwinds, including reports of a potential antitrust investigation into tech company Nvidia by the Department of Justice and disappointing guidance from major chipmaker Broadcom.
The Philadelphia Semiconductor Index endured its worst week in over two years, while Nvidia’s shares extended their biweekly losses to over 20%.
Candidate tax proposals scrutinized
Goldman Sachs analyzed the potential impact on S&P 500 earnings under tax plans proposed by both 2024 U.S. presidential candidates. Corporate tax changes could lead to significant swings in company profits, with implications for market performance, particularly in sectors sensitive to tax policy shifts.
A new way to advertise, inside cars
A new patent from Ford suggests the Dearborn-based automaker will be able to target ads inside vehicles based on location data. The technology could offer drivers advertisements relevant to their driving routes, potentially creating new revenue streams while raising questions about privacy and user experience in connected cars.
iPhone 16 event
A Bank of America equity analyst suggests Apple’s imminent iPhone 16 event may drive stock prices higher, countering the usual “sell the news” trend. Anticipated innovations and strong demand could positively impact investor sentiment, with shares potentially benefiting from the product launch excitement.
Fake Ozempic alert
Counterfeit Ozempic batches are flooding the weight loss market, posing serious health risks. Authorities are raising alarms as demand for the drug surges, increasing the circulation of these dangerous, unauthorized products worldwide.
Benzinga is a financial news and data company headquartered in Detroit.
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