What happened last week…
The stock market notched a strong rebound with the weekly performances for three major indices as follows: DJIA (2.60%), S&P 500 (4.02%), NASDAQ (5.95%). Both the S&P 500 and NASDAQ landed in positive territory for all five trading sessions last week, while the DJIA made gains in four of the five days.
Federal Reserve Vice Chair for Supervision Michael Barr announced that the proposed capital requirements for the world’s biggest banks would increase by 9%, which is less than the previously proposed 19% rise seen in the original draft known as the Basel Endgame.
Apple (AAPL) announced that its AirPods Pro 2 will add a clinical-grade hearing aid for people with mild to moderate hearing loss. The company is awaiting approval from the Food and Drug Administration, which made over-the-counter hearing aids available in 2022. Overseas, Apple must pay a $14.4 billion tax bill after Europe’s top court ruled that Ireland had given the company unlawful tax benefits over the course of two decades. Similarly, Europe’s top court upheld a $2.65 billion fine levied against Alphabet (GOOG) for antitrust behavior regarding its shopping comparison service.
Microsoft (MSFT) has hired former General Electric CFO Carolina Dybeck Happe as executive vice president and COO. Happe stepped down from her position last September after several years in the role.
The inflation rate year-over-year for August beat expectations (2.6%) as it decreased to 2.5% from 2.9%, which was the fifth straight monthly decline and the lowest reading since February 2021 (1.7%). The rate peaked at 9.1% in June 2022. Meanwhile, the core inflation rate year-over-year for August matched expectations as it remained at 3.2%, which was the lowest reading since April 2021 (3.0%).
This week…
On Wednesday, the Federal Open Market Committee is widely expected to reduce interest rates from the current range of 5.25% to 5.50%. According to the CME FedWatch Tool, as of September 13, there is a 55.0% probability of a 25-basis point cut and a 45.0% probability of a 50-basis point cut. The Fed has kept rates at its current range for the previous eight meetings and first began its series of hikes in March 2022.
On Thursday, existing home sales for August are expected to decrease to 3.85 million from 3.95 million, which snapped a streak of four straight monthly declines.
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- The Rockline Team
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