• What was the key takeaway from the August CPI data?
• How did the S&P 500 respond to the PPI data?
• Why is OpenAI seeking a $6.5 billion investment?
MARKET MOVEMENTS
Dow Jones
S&P 500
Nasdaq
40,854.32(-0.02%)
5,553.63(-0.01%)
17,403.59(+0.05%)
Opening price as of 09/12/2024 compared to last close
IN THE HEADLINES
August Inflation Hits 3-Year Low; Fed Rate Cut Anticipated
August inflation fell to its lowest level in over three years, with a 2.5% annual increase, largely due to lower gas prices. However, housing costs still contributed to over 70% of the rise, despite real-time indicators suggesting that rents are easing. Core inflation, excluding food and energy, ticked up slightly, while energy prices declined. The Federal Reserve is anticipated to cut interest rates next week, marking the first reduction since the pandemic, as the focus shifts from controlling inflation to supporting the job market. Read more
S&P 500 Wavers as Fed Bets Steady After PPI Data
The S&P 500 stalled following a three-day rally, while Treasuries experienced mild losses. Swap traders anticipate a quarter-point Fed rate cut next week. The producer price index increased by 0.2% in August, slightly exceeding forecasts, and unemployment claims rose, signaling a gradual slowdown in the labor market. Although the inflation data is unlikely to prevent next week's Fed rate cut, it reduces the likelihood of a larger reduction as the Fed shifts its focus from inflation to employment. Read more
OpenAI reportedly seeking $6.5B investment at $150B valuation
OpenAI is in talks to raise new funding, potentially valuing the company at over $100 billion, with Thrive Capital expected to lead with a $1 billion investment. Despite facing financial challenges, including projected losses of up to $5 billion in 2024 and annual spending of $7 billion on AI operations. The company has expanded rapidly, with a workforce of 1,500 and significant spending on Microsoft's servers for ChatGPT. If successful, the new round would solidify OpenAI as one of the most valuable startups globally. Read more
TradeUP TIDBITS
How Investors Are Reacting After This Week's Presidential Debate
Following the debate between Vice President Kamala Harris and former President Donald Trump, financial markets experienced notable shifts. Green energy stocks surged, while assets associated with Trump, including Truth Social’s parent company and cryptocurrencies, retreated.
A limit order is an order to buy or sell a security at a specific price. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher.
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