Newscasts - US Morning Call: Investor appetite returns after post-Fed selloff

Triumph Financial

19/12/2024 13:13

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Source: 'Reuters - Business videos'

Description: Wall Street markets were set to open higher on Thursday, after a
heavy slump after Wednesday's Fed meeting. Investors took fright at Jerome
Powell's cautious comments on the pace of future rate cuts.
Short Link: https://refini.tv/4fpoV9Y

Video Transcript:

Investors returned to the market after Wednesday's Fed sell-off. I'm Thomas
Warner with your US Morning Call. Wall Street set for a positive open this
morning following some heavy selling last night. The Fed did cut rates as
expected, but cautious comments from Jerome Powell mean that markets now
expect just two cuts for the whole of 2025. It was unwelcome news for rate
exposed stocks. The NASDAQ clocked up its biggest daily drop since July, and
the Dow suffered its tenth straight session of declines, its longest losing
streak since the Franklin National Bank collapsed all the way back in October
of 1974. There could be more volatility to come, congress has two days to
avert a partial government shutdown after Republican president-elect Donald
Trump rejected a bipartisan deal late on Wednesday, and demanded lawmakers
also raise the nation's debt ceiling before he takes office. Without a deal,
government will begin a partial shutdown on Saturday and that would disrupt
everything from air travel to law enforcement just to the peak of holiday
season. The importance of Christmas isn't lost on Amazon staff, of course.
Workers at seven US facilities walked off the job this morning, aiming to
force the retailer into union talks. The Teamsters blame Amazon for failing to
come to the table in time, Amazon says that operations will not be affected.
Well, let's turn our attention now to some other corporate stories, starting
with an update on the potential takeover of US steel. A letter seen by Reuters
says that Nippon Steel has failed to garner the approval of a powerful panel
that's reviewing its $14.9 billion bid. The letter sent Saturday sets the
stage for President Joe Biden to block the deal on the grounds of national
security. Apple is in talks with Tencent and TikTok, owner ByteDance about
integrating their AI models into iPhones that are sold in China, that's
according to three sources familiar with the matter. The world's most valuable
company started rolling out OpenAI's ChatGPT into its devices this month. The
ChatGPT is not available in China, owing to the countries relatively tight
regulations. And that means that Apple has been forced to work with local
partners instead. Moving down the food chain, shares in frozen potato maker
Lamb Weston, down 17% today after a cut to its sales forecast. They've also
replaced their CEO under pressure from activist investors Yana Partners. And
memory chipmaker Micron Technologies, down 16% after Q2 earnings came in below
forecast, JPMorgan pointed to excess inventory as well as sluggish demand in
particular for PCs. And last up today, sources in India say that the
government in New Delhi are pulling out all the stops to try and secure a
trade deal with Donald Trump, concerned he'll hit India with reciprocal taxes,
mean that they're preparing to offer tariff cuts on some farm and other
imported US goods. So far, everybody has declined to comment. And that's your
US Morning Call