Wall Street Today | Nvidia Gains After AI Computing Demand Helps Lift Forecast
MACRO
Fed Inclined Toward More Hikes to Curb Inflation, Minutes Show
"Participants observed that a restrictive policy stance would need to be maintained until the incoming data provided confidence that inflation was on a sustained downward path to 2%, which was likely to take some time," according to the minutes of the Jan. 31-Feb. 1 gathering released in Washington on Wednesday.
The minutes also said almost all officials agreed it was appropriate to raise interest rates by 25 basis points at the meeting, while a few favored or could have supported a bigger 50 basis-point hike.
Faster Inflation Portends Higher Fed Peak Rate in Latest Economists' Survey
Forecasters boosted their projections for the personal consumption expenditures price index. The metric is now seen averaging 2.4% on an annual basis in mid-2024 compared to 2.3% last month.
That's leading to expectations of a higher federal funds rate, with quarter-point rate hikes in March and May to reach a peak of 5.25%. Economists see the central bank standing pat for the remainder of 2023. Last month, survey respondents projected a terminal rate of 5%.
SECTORS
US Housing Market Posts $2.3 Trillion Drop, Biggest Since 2008
After peaking at $47.7 trillion in June, the total value of US homes declined by $2.3 trillion, or 4.9%, in the second half of 2022, according to real estate brokerage Redfin. That’s the largest drop in percentage terms since the 2008 housing crisis, when home values slumped by 5.8% from June to December.
Global Bonds Are Set to Erase 2023 Gains
Fixed-income assets have gone into reverse as central banks around the world have stood by their intention to keep raising interest rates to tame inflation. A Bloomberg index of global bonds has dropped 2.9% this month through Tuesday, unwinding almost all of its 3.3% surge in January.
COMPANY
Nvidia Gains After AI Computing Demand Helps Lift Forecast
$NVIDIA(NVDA.US$ jumped 8% in late trading after giving a bullish revenue outlook for the current quarter, suggesting that a push into artificial intelligence processors is helping offset sluggish demand for personal computer chips.
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Apple Makes Major Progress on No-Prick Blood Glucose Tracking for Its Watch
The goal of this secret endeavor — dubbed E5 — is to measure how much glucose is in someone's body without needing to prick the skin for blood. After hitting major milestones recently, the company now believes it could eventually bring glucose monitoring to market, according to people familiar with the effort. $Apple(AAPL.US$
Lucid Stock Falls More Than 9% After EV Maker's Sales and Reservations Drop
$Lucid Group(LCID.US$ late Wednesday reported a narrower quarterly loss but sales came in below Wall Street's expectations and its order book shrunk, sending the stock more than 9% lower in after-hours trading.
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Intel Slashes Dividend 66% to Lowest Payout in 16 Years
The company will reduce its quarterly distribution to investors to 12.5 cents a share, payable June 1, the chipmaker said in a statement Wednesday. $Intel(INTC.US$'s current quarterly dividend is 36.5 cents and was projected to cost more than $6 billion in 2023. The new payment resets Intel’s dividend to a level not seen since 2007.
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EBay Gives Outlook Suggesting Sales Comeback Will Take Longer
$eBay(EBAY.US$ warned investors that sales will continue to decline into the second half of the year, raising questions about management's ability to revive growth at the online marketplace now that a pandemic boom has petered out. The shares declined in extended trading.
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Source: Bloomberg, Dow Jones, CNBC, Yahoo Finance
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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