Investors React to Federal Reserve Meeting- Indian Stock Market is Booming

If investors are worried about what this week’s Federal Reserve decision might bring, they weren’t showing it on Monday. 

The Dow Jones Industrial Average rose 76 points, or 0.2%, while the broader S&P 500 gained 0.6% and the tech-heavy Nasdaq added 0.8%. All three of the major indexes lost ground last week, so maybe Monday’s better tone can be chalked up to investors coming to terms with the idea that the Fed won’t be cutting rates as soon as they once hoped. 

With recent inflation data firmer, and the job market still looking strong, the central bank will likely signal little urgency when it comes to rate cuts when it finishes its two-day meeting on Wednesday.

 Moreover, new projections might show that the majority of Fed officials expect two or fewer quarter-point rate cuts this year, in contrast to December projections that showed at least three cuts. 

Many of the consumer prices collected for the CPI report are used in the Fed’s preferred inflation gauge. 

Also, just because there’s a Fed meeting coming up doesn’t mean that investors can't keep getting excited about AI. Shares of Alphabet jumped 4.6% after a media report suggested that Google’s Gemini AI engine could be used in Apple’s iPhone. Nvidia's stock also gained, with the company set to unveil its latest chips at an conference in San Francisco that some have taken to calling 'AI Woodstock.'

America’s Office Fire Sale Has Barely Begun

Office-building owners have been under pressure since the Covid-19 pandemic hollowed out their buildings in early 2020. According to data from real-estate consulting firm Colliers, the U.S. vacancy rate has risen from 11% in late 2019 to 17% today, higher than at any point in the 2008 global financial crisis. But forced sales are still surprisingly rare.

Read More

Ozempic Can’t Do It All—A Potential New Blockbuster Is a Reminder of That

Remember when people decided that sleep apnea, diabetes, knee problems and liver disease were all going away? Starting in the summer of 2023, many healthcare stocks took a dive as investors worried that drugs like Ozempic and Zepbound were coming for all of those markets, given their link to obesity. One company slammed by that anxiety was Madrigal Pharmaceuticals, maker of a treatment for a fatty liver disease known as NASH, which on Thursday got Food and Drug Administration approval.

In Brief

• Recent economic data hits at a possibility that could spook investors, writes Aaron Back: that growth could keep slowing even while inflation plateaus, making it difficult for the Federal Reserve to cut rates this summer.
• Europe isn’t where American investors usually turn for growth, but the defense sector is a somewhat depressing exception these days, writes Stephen Wilmot.
• Japan’s stocks have reached levels that haven’t been seen for 34 years. The country is likely to hit another milestone soon: its central bank could raise interest rates for the first time in 17 years as soon as Tuesday, writes Jacky Wong.
• Indian Prime Minister Narendra Modi says the country is poised to become a world leader in the semiconductor sector. He might be in for a rude awakening, writes Megha Mandavia.

Today's Markets News

• Goldman Executive Joins Exodus of Top Female Staffers
• FedEx and Amazon Discussed Partnership as Competition for Returning Packages Intensifies
• The Two Biggest Pension Manager Jobs in the U.S. Are Open
• China Evergrande Fraudulently Boosted Sales, Regulator Says

📅 What's Coming Up

The Commerce Department will report February housing starts and building permits on Tuesday.

This week, the Federal Reserve is expected to release another interest-rate decision. 

🎧Torsten Slok, partner and chief economist at Apollo Global Management, joins WSJ’s Take On the Week to share what phrases from the Fed's statement he'll be scrutinizing, plus his predictions about future rate cuts. Check link below!