Investors bet on Fed cuts, but labor data will be cut deeper

The S&P 500 and NASDAQ Composite climbed Wednesday, driving tech stocks after a federal court decision allowed Google to maintain its Chrome browser.

Optimism about looming fee reductions by the Federal Reserve has also supported the market, with the CME FedWatch tool showing a 96.6% chance of the Fed rate at its September meeting later this month.

But weak economic data appears to hang like a darker cloud than investors. In July, employment openings fell to levels rarely seen since the Covid-19 pandemic, reinforcing the fear of cooling in the labour market.

The recruitment and labor sales report listed around 7.18 million in July, according to data from the Bureau of Labor Statistics, released Wednesday. This is the second read since the end of 2020 at the 7.2 million level.

Economists also hope that Thursday’s ADP Private Salary Report will show soft prints for August, with Jobless’s claims data expected to show a slight increase. The unemployment rate scheduled for Friday is projected to indicate an unemployment rate of 4.2% to 4.3% will be inched.

In short, the Fed may be ready to cut interest rates, but the job market will be cut deeper.

The US market is primarily climbing. The US market rose primarily on Wednesday as a federal court decision in the Alphabet antitrust case meant that Google would not have to sell Chrome browsers. The high-tech Nasdaq Composite rose 1.03% and the S&P 500 rose 0.51%. However, the Dow Jones industrial average had declined slightly. Crossing the Atlantic, the European Stoxx 600 fell 1.47%, marking its most sharp loss since August 1st, dragging it into technology and travel stocks.

Bonds under pressure. Long-standing bonds around the world are once again under pressure, mainly due to widespread investors worrying, primarily with the fiscal and monetary policy paths of several major economies. Yields on 30-year bonds in the US, UK, Japan and Germany have skyrocketed, with Japanese bonds reaching record highs.

The US will tighten export rules for chip makers. The US has revoked the exemption that allows chip-making giants such as TSMC, SK Hynix, Samsung and Taiwan Semiconductor Manufacturing Co. to export key chip-making equipment and technology to China. TSMC confirmed to CNBC on Wednesday that the export privileges for high-speed trucks known as verified end-user status will end on December 31st.

There is no more free sharing shipping. Amazon eliminates programs that allow members of the Prime Subscription program to share free shipping perks with people outside of their homes. According to a notification seen by CNBC, the company recently began notifying users that it plans to close its Prime Invitee program on October 1st.

(Pro) Fresh High gold. Bullion hit a new high this week, with spot values ​​extending records past the $3,500 mark until mid-week. However, analysts say yellow metal could still be implemented as demand continues to grow stronger.

Apple may raise iPhone prices, even if it has survived Trump’s tariffs so far

Wall Street commentators said Apple CEO Tim Cook mainly navigated the tariff threat to Apple’s business by providing Trump with an additional $100 billion in US investment.

But despite the 24-carat trophy handed out cards during the meeting, the true costs of these tariffs may finally show up to Apple customers later this month.

Some analysts predict that the company will raise the price of its devices even after Cook does it to avoid the worst tariffs.

– Kif Leswing