- Japanese Stocks Bounce Back as US Futures Gain: Markets Wrap
(Bloomberg) — Japanese equities powered higher from the open, retracing some of the losses sustained in Monday’s global rout that wiped out billions across markets from New York to London. US equity futures also advanced and Treasuries fell. Japan’s two key gauges both jumped almost 11%, after tumbling in excess of 12% the day before. - Dow tumbles 1,000 points, S&P 500 posts worst day since 2022 in global market sell-off
Stocks fell sharply on Monday, with the Dow Jones Industrial Average posting its worst day in nearly two years, as worries over the health of the U.S. economy sparked a global market sell-off.
The Dow dropped 1,033.99 points, or 2.6%, to end at 38,703.27. The Nasdaq Composite lost 3.43% and closed at 16,200.08, while the S&P 500 slid 3% to end at 5,186.33. The blue-chip Dow and S&P 500 registered their biggest daily losses since September 2022. - Stock Meltdown Puts S&P 500 on Brink of Correction: Markets Wrap
(Bloomberg) — A renewed bout of volatility hit global markets as recent talk about a US economic recession — mostly seen as premature — spurred warnings that this year’s sizzling stock rally has gone too far. - Gold Halts Slide After Market Rout Triggered Margin-Call Selling
(Bloomberg) — Gold steadied after being pulled into Monday’s global rout, when it slumped as some traders cut holdings to cover potential margin calls. Spot bullion plunged as much as 3.2% in the previous session, the biggest intraday drop since early June, before paring losses. Prices traded in a daily range of more than $90 as shares and commodities tumbled. - Oil prices climb more than $1 on fear of spreading Middle East conflict
Oil prices climbed more than $1 on Tuesday, paring the previous day’s loss as concern that an escalating Middle East conflict could hit supplies outweighed fear of a possible U.S. recession that could hurt demand in the world’s biggest oil consumer. Brent crude futures gained $1.25, or 1.6%, to $77.55 a barrel by 0037 GMT, while U.S. West Texas Intermediate crude futures climbed $1.35, or 1.9%, to $74.29. - Volatility-Rocked Quants Threaten New $170 Billion Selling Spree
(Bloomberg) — Systematic funds have offloaded more than $130 billion of global stock bets in recent weeks. Now these rules-based players threaten to take their selling to a whole new level as volatility spikes. Strategies including risk parity, vol-targeting and trend following will dispose $70 billion to $80 billion of shares Monday. - TSMC Named Top Pick at Morgan Stanley After Record Selloff
(Bloomberg) — Taiwan Semiconductor Manufacturing Co. is being touted as a “top pick” by Morgan Stanley after its shares plunged by a record Monday amid the global stock rout. “We like TSMC’s quality and defensive nature during an elongated semi downcycle,” Morgan Stanley analysts including Charlie Chan wrote in a note published Monday. - US, Allies Make Frantic Push to Avert Possible Mideast War
(Bloomberg) — The US and its allies worked to head off an Iranian attack on Israel and avert a wider regional war as concerns grew that a strike may come at any moment in retaliation for the killing of a top Hamas leader in Tehran. The Biden administration moved additional forces to the region. - Bangladesh President Vows to Hold Election as Soon as Possible
(Bloomberg) — Bangladesh’s figurehead president promised to hold elections “as soon as possible” following the ouster of long-time leader Sheikh Hasina on Monday in the wake of deadly protests. In a late-night televised address, President Mohammed Shahabuddin ordered the release of jailed protesters, as well as ex-prime minister and opposition leader Khaleda Zia. - Fed’s Daly Says Job Market Slowing, Can’t Let It Slow Too Much
(Bloomberg) — Federal Reserve Bank of San Francisco President Mary Daly said the labor market is softening and indicated the US central bank should begin cutting interest rates in coming quarters, but stopped short of concluding the labor market has begun seriously weakening. - Treasury Rally Ignites Debate on How Fast Fed Needs to Cut Rates
(Bloomberg) — A major rally in the $27 trillion Treasury market is laying bare anxiety that the US economy is sliding into recession and the Federal Reserve will need to start aggressively cutting interest rates. US government debt surged Monday, pushing two-year yields which are sensitive to monetary policy. - US Services Activity Expands at Modest Pace as Orders Rebound
(Bloomberg) — The US services sector expanded in July after contracting a month earlier by the most in four years, which may help allay fresh concerns about an abrupt downturn in the economy. The Institute for Supply Management’s index of services rose 2.6 points to 51.4. Readings above 50 indicate expansion. - Supreme Court Rejects GOP States on Trump’s New York Conviction
(Bloomberg) — The US Supreme Court refused to intervene in the New York criminal conviction of Donald Trump for hiding hush-money payments, rejecting a long-shot bid by Missouri and other Republican-led states to delay the former president’s sentencing until after the election. The justices on Monday declined to let Missouri take the unusual step of suing New York. - Trump Suggests Fans Quit Using Google in Interview with Gamer
(Bloomberg) — Republican nominee Donald Trump called for his supporters to stop using Alphabet Inc.’s Google, calling the search engine “illegitimate” as he doubled down on his criticisms of large technology companies. “Something’s wrong with Google,” Trump said in an interview with controversial video-game celebrity Adin Ross on Monday. - Yen Snaps Five-Day Gain, Weakens Versus Dollar in Choppy Trading
(Bloomberg) — The yen weakened more than 1% against the dollar on Tuesday morning, halting a five-day surge that gathered pace when the Bank of Japan hiked interest rates last week. The currency then clawed back much of the intraday loss amid choppy trading and was down 0.6% at 145.02 as of 9:58 a.m. in Tokyo. - Japan’s Real Wages Rise First Time in 27 Months in June
(Bloomberg) — Japanese workers’ real wages rose for the first time in more than two years, brightening the prospects for a recovery in consumption and the emergence of a positive growth cycle long sought by the Bank of Japan. Real cash earnings for workers climbed 1.1% in June from a year earlier, turning positive for the first time since March of 2022. - Kellanova Shares Surge as Mars Weighs Buyout of Snackmaker
(Bloomberg) — Kellanova shares shot up Monday as Mars Inc. considers buying the snack maker in what could be one of the biggest deals this year. Deal talks are ongoing, and no final decisions have been made, according to people familiar with the matter who were not authorized to speak publicly. Kellanova shares jumped as much as 20% in New York trading. - Continental Weighs Car Parts Spinoff in Major Revamp
(Bloomberg) — Continental AG may separate its struggling car parts business from the more successful tires operations in what would be the biggest restructuring in the German company’s 152-year history. The move may include a spinoff and full listing, with a decision expected by the end of the year. - Shares of Apple ended 4.8% lower on Monday, slightly recovering from a drop of more than 8% in premarket trading, after Warren Buffett’s Berkshire Hathaway disclosed over the weekend that it had sold nearly half of its Apple stake in the second quarter
Buffett’s reputation as one of the all-time greatest stock pickers means his decisions can significantly sway the market. The stake now stands at roughly US$84 billion (S$111 billion), down from about US$140 billion at the end of March. - Nvidia hit engineering snags in the development of two new advanced chips, slowing the release of some products
The delays affected the company’s highly anticipated Blackwell lineup, which Nvidia announced in March, according to people familiar with the situation. A version of the chip, known as an AI accelerator, is being reworked to better work with data center infrastructure designed for an earlier chip, the Hopper H100. Separately, a product that combines a processor with a graphics chip won’t be available in large numbers as quickly as hoped because of problems with supporting technology, they said. Nvidia declined to comment on “rumors” about the recent engineering problems. The company has said it has begun sending out samples of Blackwell to customers broadly, and demand for its Hopper generation remains strong. - Shares in cryptocurrency-linked companies tumbled as Bitcoin was pummeled by its steepest drop since late 2022, falling as much as 16% Monday
The weakness in the digital token comes amid a broader selloff in global stock markets. Coinbase Global Inc., the largest US exchange, fell 7.3%, Bitcoin proxy MicroStrategy Inc. plunged almost 10%, and miners Marathon Digital Holdings Inc. and Riot Platforms Inc., each slumped for a sixth consecutive trading session. - Tyson Foods Inc. shares rose, bucking a broad retreat in equity markets, as quarterly earnings beat estimates on a rebound in chicken profits
Earnings excluding some items were 87 cents a share for the three months ended June, almost six times higher than a year earlier and above the 67-cent average estimate. Tyson’s poultry business made 307 million in operating profits in the quarter, the highest since 2016 for a fiscal third quarter and roughly 62% of the company’s total. Tyson raised the midpoint of its outlook range for 2024 adjusted operating income by $100 million to $1.7 billion, mostly driven by improved estimates for its chicken business. - Palantir Technologies stock jumped 12.2% in afterhours trading after the company raised its annual outlook, citing continuing demand for its artificial intelligence software
Palantir Chief Executive Officer Alex Karp said the earnings report was a “historic” one for the company, which provides data analysis tools to companies and governments, including for defense and intelligence purposes. Karp said he believed it’s a significant time for the US. “The world is on the precipice of what could be a very severe set of violent interactions in the Middle East,” he said. Palantir increased its 2024 revenue guidance to a range of $2.74 to $2.75 billion. Analysts had expected $2.7 billion. The company also raised its outlook for adjusted operating income to a range of $966 million to $974 million for the year. Analysts had expected $882.9 million. - Google loses antitrust case over search
A federal U.S. judge ruled Monday that Google has illegally held a monopoly in search and text advertising. The court homed in on Google’s exclusive search arrangements on Android and Apple’s iPhone and iPad devices. The Department of Justice and a bipartisan group of attorneys general from 38 states and territories, led by Colorado and Nebraska, filed similar but separate antitrust suits against Google in 2020. - OpenAI co-founder John Schulman says he will leave and join rival Anthropic
OpenAI co-founder John Schulman said in a Monday X post that he would leave the Microsoft-backed company and join Anthropic, an artificial intelligence startup with funding from Amazon. The move comes less than three months after OpenAI disbanded a superalignment team that focused on trying to ensure that people can control AI systems that exceed human capability at many tasks. - Oil giant Saudi Aramco’s second-quarter profit dips 3% on lower crude production volumes
Saudi state oil giant Aramco reported $29.1 billion in net profit for the second quarter, a dip of 3.2% from the same period last year as production volumes remained low. Aramco reaffirmed its second-quarter base dividend of $20.3 billion and declared a performance-linked dividend of $10.8 billion to be paid in the third quarter. - Elon Musk’s X AI shared false election information after Biden dropped out, officials say
Five secretaries of state urged Elon Musk to fix Grok, the AI search assistant on X, after it allegedly shared false information about the 2024 election. The officials from Minnesota, Pennsylvania, Michigan, New Mexico and Washington said Grok misled users about ballot deadlines after President Joe Biden withdrew his reelection bid. Musk, the billionaire CEO of Tesla and SpaceX, had endorsed former President Donald Trump before Biden dropped out and backed Vice President Kamala Harris as the Democratic nominee.
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