Wall Street remains patiently observant.
On Wall Street, there's a pause in investment activity just before the US inflation report deployment. The gambling establishments are quiet, and the buzz topic this time has once again become Gamestop.
Monday on Wall Street was a quiet day, with the reporting season nearing its closure and the impending announcement of the US consumer prices for April on Wednesday. Consequently, there was a lack of new forces to drive the market. Dow Jones sank by 0.2% to 39,432 points, while S&P 500 showed no change. But Nasdaq Composite gained 0.3%.
The anticipation is high for the US Federal Reserve's upcoming interest rate trajectory based on the data. In recent weeks, weak data relating to the US labor market had ignited the notion of a rate cut. However, most investors are speculating September as the probable month. But the Fed has penned a continuous statement demanding clarity about any further tumble in inflation to make a decision on an interest rate cut. "The importance of the April US inflation rate report is emphasized, as a lower figure could increase chances of Fed rate cut as early as July, whereas a higher one could delay the rate cut until beyond September," said IG market strategists.
Apple on the upside
Apple gained 1.8% after rumors circulated about them potentially adopting OpenAI technology for the iPhone. This would be a hit for Alphabet, which has been aiming to market its own AI system. Alphabet initially saw a considerable downturn but closed the day with a 0.3% improvement. The fact that Apple was facing its first strike in the US didn't affect the share rate. The unionized employees of an Apple store had voted in favor of walkouts during negotiations with Apple.
Kraft Heinz is eyeing the sale of Oscar Mayer, a leading manufacturer of hot dogs, cold cuts, and bacon. The food company recently got in touch with Bank of America and Centerview Partners to measure interest in the business, which could range from $3 billion to $5 billion. However, abolition of the transaction is also a possibility, according to sources. Kraft Heinz's stock gained 0.7%.
Intel had a 2.1% boost. The semiconductor company was reportedly seeking assistance from a financial investor to help build a plant in Ireland. Intel is in interactive negotiations with Apollo, whereby the investor could grant more than $11 billion in financial support for this project. Booking plummeted by 1.6%. The booking platform is compelled to comply with intensified regulations in the EU.
Gamestop saw a 74.4% surge after a renowned investor reignited the excitement with vaguely suggestive comments on social networks. This figure has previously engendered speculation about investing. AMC Entertainment similarly saw an upswing of 78.4%, having been previously boosted by social media campaigns.
Oil prices climbed, making up for the losses from the previous week. The Chinese consumer rate index showed an upward trend for the third time in April, suggesting a pick-up in domestic demand, the key oil-consuming nation. The recent escalation in the Gaza Strip via the Israeli Rafah offensive also heightened rates. Opec and the International Energy Agency (IEA) would release their respective monthly reports this week.
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Amidst the wait for the US inflation report, share traders on Wall Street closely monitor the implications on share prices, particularly the Dow Jones, which remained relatively stable during this period. The anticipation around the potential impact on share trading and Wall Street's response to any changes in the US Federal Reserve's interest rate trajectory is high.
Following the release of positive rumors about Apple potentially adopting OpenAI technology for the iPhone, share prices of both Apple and Alphabet saw significant movements in the share trading market on Wall Street, reflecting the influence of such announcements on the Dow Jones and other major indices.
Source: www.ntv.de
