Wall Street's Week in Review: Rate Cut Expectations and Market Performance

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Hello readers,

It's been an eventful week on Wall Street, with U.S. stock markets closing Friday with gains across the board. The Dow, S&P 500, and Nasdaq all closed the day with gains of about 0.6%. Conventional wisdom has a rate cut coming after the Fed's meeting in September, but why wait even that long?

Reasons to wait until September are mostly procedural, not economic. Big banks like JPMorgan, Citigroup, and Wells Fargo saw their shares drop following disappointing quarterly reports that showed how higher interest rates continue to weigh on their businesses. AT&T shares slipped after the telecom giant disclosed a massive data breach that took place in 2022. Social networks Meta Platforms, Snap, Pinterest, and Nextdoor all took a hit after European Union regulators charged Elon Musk's X with breaching its online-content law.

For the week, the Dow picked up a gain of 1.6%, closing above the 40,000 mark on Friday for the first time since May. The S&P 500 closed the week with a 0.8% gain while the Nasdaq edged up 0.3%. Crude oil, Bitcoin USD, and gold continuous contract data refresh every time you open this email.

On a different note, the SEC’s new rule on how U.S. public companies disclose their greenhouse gas emissions elevates the importance of coordination between the finance and sustainability functions. The Wall Street Journal’s Evan Gershkovich is being wrongfully detained in Russia after he was arrested while on a reporting trip and accused of spying—a charge the Journal and the U.S. government vehemently deny.

Auto dealers are hopeful that electric vehicles will bring back the glory days of brisk sales and rapid obsolescence. In brief, some of Wall Street’s top banks reported big jumps in their investment-banking revenue on Friday, but the long-awaited turning point for dealmaking is not here yet.

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Today's Markets News:

  • StubHub Delays IPO Launch Due to Choppy Market Conditions
  • Americans Are Spending Big on Credit Cards
  • Options Bulls Come Out to Play
  • Producer Inflation Strengthens in June
  • A Bountiful Wheat Harvest Is Sending Prices Lower

Earnings season really gets underway next week, with 42 S&P 500 companies slated to report results. Goldman Sachs and BlackRock kick off the action Monday morning.

Thank you for staying updated with us.

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