AI lifts Nasdaq to new highs

The Federal Reserve

As expected, the Fed left the fund rate target range unchanged at 5.25%–5.5%. Fed policymakers now see only one rate cut of 25 basis points in 2024, compared to a total of 75 basis-point cuts previously. During the Fed press conference, Jerome Powell said the central bank didn't have the confidence to cut rates yet. For 2025, the Federal Open Market Committee (FOMC) median forecast shows a full percentage point cut, after a 75 basis-point cut previously.

The dollar

The USD initially weakened at the release of softer-than-expected inflation data, but pared some of its losses after the Fed decision. Headline consumer price index (CPI) pointed at 3.3% YoY. 3.4% was expected. Core CPI growth decelerated to 3.4% YoY from 3.6% the previous month, also lower than the 3.5% expected.

Australian unemployment rate

In Australia, the unemployment rate fell to 4% in May, matching expectations. Employment increased the most in three months by 39,700, beating market forecasts, helped by a 41,700 jump in full-time employment.

Eurozone industrial production

Later on Thursday, industrial production in the eurozone is forecast to fall by 1.9% in April YoY. Over in the US, the producer price index is forecast to rise by 2.4% in May year-on-year (YoY), at the same pace as in April.

Crest Nicholson

Crest Nicholson posted an operating profit of £5.9 million and revenue of £257.5 million. The group slashed its interim dividend to 1p.

Broadcom

Watch out for Broadcom at the open on Wall Street this afternoon. The stock jumped 12% in extended trading after raising its revenue forecast. Earnings per share rose to $10.95 and revenue to $12.49 billion, both beating analysts' estimates.

Broadcom recorded revenue of $3.1 billion from its AI products during the second quarter and expects $11 billion in revenue from AI-linked chips in 2024, up from its previous forecast of $10 billion. Broadcom also announced it will carry out a 10-for-1 forward stock split in a bid to make its shares more affordable for retail investors.

Cocoa

Cocoa has attracted a lot of attention lately. A few months ago, cocoa prices hit record highs due to supply issues from Ivory Coast, the world's largest producer. This time, concerns come from its neighbor, Ghana, the world's second-largest cocoa producer. The country is looking to delay delivery of up to 350,000 tons of beans until next season due to poor crops. The market had previously estimated that Ghana would roll forward some 250,000 metric tons of cocoa.