Here are one of the most crucial story that capitalists require to begin their trading day:
1. Flicker of a surge
Wednesday was an unstable day for the significant standards after Federal Get Chair Jerome Powell basically ruled out that the central bank’s next move would be a rate hike (more on that below). The markets initially responded positively to that news, but it didn’t last. The Dow rallied more than 530 points at its session high, but ended up closing the day only 87.37 points, or 0.23%, higher. The S&P 500 was up 1.2% at one point, but finished the day by losing 0.34%, while the Nasdaq Composite jumped more than 1.7% in intraday trading only to close with a loss of 0.33%. Investors will watch Thursday for economic data and more corporate earnings. Follow live market updates.
2. Rate hike ‘unlikely’
U.S. Federal Reserve Chair Jerome Powell holds a press conference following a two-day meeting of the Federal Open Market Committee on interest rate policy in Washington, U.S., May 1, 2024.Ă‚Â
Kevin Lamarque | Reuters
3. Googlers gone
A view of Google Headquarters in Mountain View, California, United States on April 16, 2024.Ă‚Â
Tayfun Coskun | Anadolu | Getty Images
4. Cutting back
Customers drink and use laptops at the American multinational chain Starbucks Coffee store in Spain.Ă‚Â
Xavi Lopez | Sopa Images | Lightrocket | Getty Images
Are consumers finally starting to cut back? Economists have been predicting they would tighten their spending in response as prices and interest rates stay high. Now, fast-food chains might be seeing that happen. Starbucks announced a surprise drop in same-store sales for the most recent quarter. KFC and Pizza Hut also saw that metric fall, while McDonald’s said it would adopt a “street-fighting mentality” to compete for budget-conscious diners. Many restaurant companies offered other reasons for the drops, citing weather or tough comparisons to the previous year, but those don’t fully explain the weak quarter.
5. Peloton off
Barry McCarthy speaks during an interview with CNBC on floor of the New York Stock Exchange (NYSE), October 28, 2019.
Brendan McDermid | Reuters
Peloton CEO Barry McCarthy is stepping down after a little more than two years in the role and the company is laying off 15% of its staff, or about 400 employees. The company also plans to continue closing retail showrooms and changing its international sales plan as it looks to cut costs by $200 million. Peloton said in a Thursday news release that the restructuring is designed to realign its cost structure with the current size of its business. Peloton appointed two interim co-CEOs and is seeking a permanent replacement.
— CNBC’s Samantha Subin, Jeff Cox, Jennifer Elias, Amelia Lucas and Gabrielle Fonrouge contributed to this report.
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