• How Will the FOMC's Paused Rate Hikes Impact the Economy Later This Year?
• Can AMD's New AI Chip Challenge NVIDIA's Dominance in the Market?
• Why is a Risk Management Strategy Critical for Success in Stock Market Investing?
MARKET MOVEMENTS
Dow Jones
S&P 500
Nasdaq
33,962.95 (-0.05%)
4364.38 (-0.19%)
13,626.48 (+0.39%)
Opening price as of 06/15/2023 compared to last close
IN THE HEADLINES
FOMC Pauses Rate Hikes and Signals More Increases Later This Year
Federal Reserve maintained interest rates at 5% to 5.25% and forecasted two more hikes this year. Jerome Powell, Fed Chair, emphasized the future consideration of cumulative rate hike impacts and does not foresee rate cuts until inflation meaningfully decreases. Despite the June pause, future rate increases are expected, potentially raising rates to 5.6% by the end of the year. Powell also pointed to progress against inflation, notably from the housing market. Despite forecasts for additional hikes, major stock averages rebounded sharply during Powell's press conference. Read more
AMD Launches AI Chip as NVIDIA Reach New High
AMD has provided details on its new AI chip, MI300X, set to challenge Nvidia's market dominance. The chip, featuring 192GB memory, aims to improve AI service delivery. However, AMD did not announce any major customers or pricing details, causing its stock to fall 3.6% after the presentation. Analysts suggest AMD's software solutions still need to prove their competitiveness with Nvidia's. Read more
US and China aim for stability but not significant progress during Blinken's visit
US Secretary of State Antony Blinken is making a rare visit to China, marking the first trip by a top US diplomat in nearly five years. The visit aims to bring predictability to the tense relationship between the two superpowers, but neither side anticipates substantial progress. While both countries are reportedly interested in preventing military conflict, neither is prepared to make significant concessions. The visit also indicates a shift in the US-China relationship, emphasizing stability even amid competition. Read more
TradeUP TIDBITS
Risk management is the process of evaluating and minimizing the risks associated with stock market investing. It is the process of analyzing potential risks and taking measures to avoid or mitigate them. In essence, it is trading with a calculated risk. The key to proper risk management when using a stock trading app is having a strategy in place ahead of time to deal with the unexpected.
Having a risk management strategy is essential for any investor who wants to be successful in the stock market. Without one, investors expose themselves to potentially significant losses resulting from unexpected market movements or other unforeseen circumstances
Options Greeks: Delta
Options Greeks are a set of mathematical measurements used to assess the risk and behavior of options. They are named after Greek letters, which represent different variables in the pricing and valuation models of options.
Delta (Δ): Delta measures the sensitivity of an option's price to changes in the price of the underlying asset. It indicates how much the option price is expected to change for a one-point movement in the underlying asset. Delta ranges from 0 to 1 for call options (0 to -1 for put options), with in-the-money options having a delta closer to 1 (or -1) and out-of-the-money options having a delta closer to 0.
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This week's topic is: Do you believe the Fed's pause on rate hikes and the forecasted increases later this year will help curb inflation effectively?
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