Beat the street: CPI data weighs on Fed rate-cut hopes; SEC gives Bitcoin ETFs green light; Google; Citi
Slightly stronger-than-expected December US inflation data dampens rate-cut hopes.
The SEC has given Bitcoin ETFs the green light, so what does this mean for investors? Google cuts hundreds of jobs in Assistant, engineering, and hardware teams. Citigroup’s profit is set to take $3.8 billion hit.
(AI Video Summary)
CPI on deck
In today's edition of "Beat the street," the host Angeline Ong talks about some important news happening before the trading opens on Wall Street. She mentions that investors are eagerly waiting for the Consumer Price Index (CPI) reading because it can give them hints about interest rate cuts by the Federal Reserve. She also discusses the approval of Bitcoin ETFs by the SEC and how it could affect investors. Additionally, she talks about Google's plans to make job cuts in their engineering and hardware teams.
When it comes to the CPI figures, the core CPI month-on-month reading for December was 0.3%, which was slightly higher than expected. The core CPI index matched expectations, while the year-on-year figure was slightly higher. As a result, the S&P 500, Wall Street, and the NASDAQ 100 all saw a decline after the CPI figures were released, although there was not much volatility.
CPI reaction analysis with Chris Beauchamp
The show then features an interview with Chris Beauchamp from IG, who analyses the market reaction to the CPI figures. Beauchamp explains that although the CPI figure increased slightly, overall inflation is still falling, and the Federal Reserve is taking the right steps. He suggests that a rate cut may be more likely in May than in March, and emphasises how the difference between market expectations and the Fed's projections can cause market volatility.
Major stock and Bitcoin updates
The video then moves on to discuss the performances of different stocks. Amazon and NVIDIA experienced declines after the CPI figures were released, while Netflix saw gains after announcing the success of their ad-supported tier. The video also highlights the approval of Bitcoin ETFs by the SEC, which could attract investments worth $50 to $100 billion this year from companies like BlackRock and Fidelity.
Other stories mentioned include the cancellation of Boeing 737 Max 9 jets by Alaska Airlines and United Airlines due to ongoing issues with the aircraft, and Google plans for job cuts in their engineering and hardware teams. The video concludes with a mention of Citigroup expected charges and reserves in the fourth quarter, as well as the upcoming earnings reports from JPMorgan Chase, Bank of America, and Wells Fargo. The impact of future comments from Federal Reserve officials on interest rate cuts is also discussed.
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