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        Wall Street Today | Wall Street Gearing Up for Fed's 'Hawkish Pause'

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        Moomoo Recap US wrote a column · 09/19/2023 05:02
        Wall Street Today | Wall Street Gearing Up for Fed's 'Hawkish Pause'
        MACRO
        Wall Street Gearing Up for Fed's 'Hawkish Pause'
        Starting with the Federal Reserve on Wednesday and ending with the Bank of Japan two days later, monetary policy will be determined at key meetings across half of the Group of 20. U.S. officials set out at a theme at Jackson Hole in August: Rates will likely stay higher for longer.
        With the Fed widely expected to keep rates on hold this week, traders will be focused on the so-called dot plot summary of economic forecasts. The two main questions are whether policymakers will retain their projections for one more 25 basis-point hike by year-end — and how much easing they are penciling in for 2024.
        World’s Borrowers Fret on How Long Fed and Peers Will Keep Interest Rates High
        It’s arguably the biggest economic question right now: Are these higher interest rates here to stay? In textbook jargon, it all comes down to R-Star (R*) -- the long-term neutral interest rate that keeps inflation steady at around 2%.
        The post-COVID price spike shattered the calm, spurring a debate among economists, central bankers, and bond traders about the future of inflation and interest rates – with real implications for a world saddled with about $300 trillion in debt. If central banks conclude that R* is now higher, they'll also need to keep their benchmark rates more elevated.
        Source: Bloomberg
        Source: Bloomberg
        SECTORS
        Oil’s Rally to $95 Stutters as Saudis Temper Demand Outlook
        Global oil benchmark Brent paused its rally toward $95 a barrel after Saudi officials doubted the outlook for demand.
        Saudi Energy Minister Abdulaziz bin Salman Al Saud, speaking at the World Petroleum Congress in Calgary, said  Saudi Aramco lowered its estimate for 2030 demand. While OPEC+ curbs have undoubtedly tightened global supplies, oil’s ascent into overbought territory has left the market vulnerable to a correction.
        Source: Bloomberg
        Source: Bloomberg
        UAW Auto Strike Looms Large for Inflation and Economy
        Several days into the standoff, the United Auto Workers has acted in piecemeal fashion. The union has only launched strikes at three of the 25 U.S. plants run by the Big Three of $General Motors(GM.US)$, $Ford Motor(F.US)$ and $Stellantis NV(STLA.US)$. Less than 10% of the UAW's 146,000 members have participated.
        The union's initial tactics won't put much of a dent in the economy for now. The number of employees who could be potentially involved is still quite small -- less than 0.1% of the entire U.S. workforce -- and the automakers have built up their inventory of new cars ahead of the strike.
        COMPANIES
        Instacart IPO Target Aims at Cash Bump Without Blow to Debut Pop
        Instacart, officially Maplebear, seeks to raise as much as $660 million Monday at a more than $9 billion valuation and begin trading Tuesday.
        Arm Falls After Bernstein Downplays Company’s AI Prospects
        $Arm Holdings(ARM.US)$ fell after Bernstein started coverage on the newly public chip designer with an underperforming rating, suggesting it may not be the beneficiary of artificial intelligence that some investors expect.
        Nikola Jumps After Hiring General Motors, Dell Veteran Mary Chan
        $Nikola(NKLA.US)$ climbed after the company appointed former General Motors Co. president Mary Chan as its new chief operating officer.
        Clorox Says Cyberattack Is Hurting Product Availability, Will Weigh on Quarter
        $Clorox(CLX.US)$'s quarterly earnings will take a hit from a recent cyberattack, which has disrupted operations and dented the availability of the company's products.
        Disney India Sale Talks Draw Firms, Including Reliance
        $Disney(DIS.US)$ has held preliminary talks with potential buyers for its India streaming and television business, including billionaire Mukesh Ambani’s Reliance Industries Ltd., according to people familiar with the matter.
        Amazon Is Poised to Hire Departing Microsoft Product Chief
        $Amazon(AMZN.US)$ is hiring a $Microsoft(MSFT.US)$ product chief to run the division responsible for the voice-activated Alexa assistant and Echo smart speakers.
        Source: Bloomberg, Dow Jones, CNBC
        Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more
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