• What is the current trend in jobless claims?
• What boosted retail sales in September?
• What triggered the drop in chip stocks?
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IN THE HEADLINES
U.S. Jobless Claims Fall Back to Normal Range After Hurricane Spike
Last week, U.S. jobless claims fell by 19,000 to 241,000, returning to recent levels after a hurricane-driven spike. This figure came in below analysts’ expectations of 262,000. While some of the volatility was attributed to Hurricane Helene and a Boeing strike, the broader trend suggests that the labor market may be softening due to high interest rates. The Federal Reserve, responding to weakening employment data and lower inflation, recently cut interest rates for the first time in four years. Despite this slowing, the U.S. economy added a robust 254,000 jobs in September, signaling continued growth. Read more
Robust Consumer Spending Boosts U.S. Retail Sales in September
U.S. retail sales rose by 0.4% in September, driven by strong discretionary spending as lower gasoline prices allowed consumers to spend more at restaurants, bars, and clothing stores. Gains across various categories—including online sales, personal care, and general merchandise—reflected the economy's resilience. Lower gas prices and solid household balance sheets supported this spending, despite a slowdown in labor market momentum that still maintained wage gains. Economists anticipate the Federal Reserve will cut interest rates by a quarter percentage point in November as inflation pressures ease. Read more
Global Chip Stocks Drop Amid ASML's Weak Outlook and Potential U.S. Export Restrictions
Global chip stocks fell on Wednesday following disappointing sales forecasts from Dutch semiconductor equipment maker ASML. ASML's stock plunged 16%, erasing over €49 billion in market value, and continued to decline by another 5% the following day. This downturn affected other European chipmakers, including ASMI, BE Semiconductor, and STMicroelectronics. In Asia, semiconductor firms experienced significant losses, with Tokyo Electron down nearly 10% and Taiwan Semiconductor Manufacturing Company falling 3.3%. Investor sentiment was further dampened by reports of potential U.S. export restrictions on advanced AI chips, which could impact Nvidia and other global chipmaker. Read more
TradeUP TIDBITS
When Will Mortgage Rates Go Down? A Look at 2024 and 2025
Since late 2022, mortgage rates have fluctuated between 6% and nearly 8%, reaching a two-decade high. In September 2024, the Federal Reserve unexpectedly cut rates by 50 basis points, with further reductions anticipated in 2024 and 2025. While rates have fallen from their earlier peaks, they still remain above pandemic lows. Experts expect gradual declines in 2025 and advise buyers to weigh current affordability against potential competition in the housing market.
Each publicly traded common stock in the U.S. receives a short abbreviation that identifies it, known as its stock symbol or stock ticker symbol. Some stocks have single-letter ticker symbols while others may have up to five. Letters that appear after a ticker provide additional information. For instance, the letter "Q" after a ticker signifies that the company is in bankruptcy.
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