Tim Cook, CEO of Apple Inc., next to the Apple Vision Pro Mixed Reality (XR) headset at Apple’s Worldwide Developers Conference in Cupertino, California, U.S., Monday, June 5, 2023.
Philip Pacheco | Bloomberg | Getty Images
This report is from today’s CNBC Daily Open, the new Global Markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Did you see it? You can register over here.
- All major stock indexes in the US rose on Monday, with the tech-heavy Nasdaq Composite enjoying the biggest jump.
- China’s economy and stocks are not as hot as Japan’s. The Shanghai Composite fell around 0.1% and the yuan hit a 6-month low as the People’s Bank of China cut short-term lending rates to boost liquidity. Analysts believe it is a sign that the central bank will cut medium-term and key lending rates in the coming weeks.
- Goldman Sachs CEO David Solomon told CNBC that commercial real estate is in such bad shape that his bank is writing off bad loans and lowering expectations on real estate investments. Still, Solomon said, the resilience of the U.S. economy “surprised me.”
- JPMorgan Chase is ready to pay $290 million to settle a lawsuit filed by a victim of late sex predator Jeffrey Epstein, a source told CNBC. However, the bank’s lawsuit against the US Virgin Islands and its claim against former executive Jess Staley, who was a friend of Epstein’s, are still pending.
Hopes of a pause in interest rates helped send stocks higher on Monday. The technology sector, which is more sensitive to rate fluctuations, has benefited in particular. (Today’s higher rates will lower tomorrow’s technological progress.)
Traders are betting there is a 72% chance the Federal Reserve will keep rates on hold at this week’s meeting, according to CME Group’s FedWatch tool. That’s because economists think the consumer price index, which will be released later today, will see inflation for May fall to just 0.1% from last month, or 4% year-on-year. That is a “title number. [that] According to Moody’s Analytics Chief Economist Mark Zandi, we’re about to feel better.
Big Tech stocks mostly rose at least 1%; Apple reached an all-time high of $183.79 per share. Meanwhile, Oracle’s better-than-expected earnings report sent its shares up 3% in extended trading.
The Nasdaq rose 1.53 percent to hit its highest level since April. The S&P 500 rose 0.93%, adding to its accumulated gains over the past few days, and the Dow Jones Industrial Average rose 0.56%.
Despite those big moves, it was a relatively light trading day. On an average day, 80.6 million units of the SPDR S&P 500 ETF Trust, a tracker of the broad S&P 500 index, trade. Yesterday, only 31.5 million changed hands. That’s probably smart considering the inflation data coming out tomorrow and the Fed meeting happening after that. Tech will benefit greatly from low interest rates, but keep in mind that the opposite is true.