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Dollar Drops as Polls Favor Harris, Nvidia Joins Dow.
Markets
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S&P 500 |
Nasdaq |
Dow |
|
5,728.81 |
20,033.14 |
42,052.19 |
1D |
+0.41%
|
+0.72%
|
+0.69%
|
5D |
−1.80%
|
−2.06%
|
−0.50%
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1M |
+0.54%
|
+1.56%
|
−0.17%
|
6M |
+11.83%
|
+12.24%
|
+8.64%
|
YTD |
+20.73%
|
+20.19%
|
+11.94%
|
Top Stories
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The dollar declined significantly, and US Treasuries rallied as polling data showed Kamala Harris gaining ground in the presidential race against Donald Trump, shifting investor sentiment.
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Notably, recent polls indicated Harris leading in several key states, although many advantages were within the margin of error, suggesting a tightly contested election.
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Additionally, factors such as Nvidia's stock rise following its inclusion in the Dow Jones Industrial Average and ongoing central bank decisions will influence market dynamics this week.
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The Federal Reserve is expected to cut interest rates by a quarter-point to about 4.6% during its meeting on Thursday, making it the second reduction this year as inflation continues to cool, despite the uncertainty surrounding the presidential election results.
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Future actions of the Fed may become complicated with a potential Trump presidency, as his proposed tariffs and immigration policies could spur inflation, leading to possible changes in rate cut plans.
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Currently, while the economy shows signs of growth and low unemployment, the Fed aims to recalibrate rates to align with a lower inflation environment, and discussions are ongoing about how low rates should go moving forward.
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Nvidia's upcoming inclusion in the Dow Jones Industrial Average in November 2024 underscores its significant rise in the AI-driven economy, with a market cap of approximately $3.32 trillion and a staggering 170% stock surge in 2024.
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In contrast, Intel, which has faced severe challenges leading to a 50% stock drop this year, will be removed from the index, highlighting the intense competition in the tech sector and the necessity for innovation.
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This change will result in four trillion-dollar tech companies—Apple, Microsoft, Amazon, and Nvidia—being represented in the Dow, emphasizing a broader shift toward AI technologies in the market.
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Eli Lilly reported a disappointing quarterly sales miss for its weight loss drug Zepbound, leading to an almost eight percent drop in its shares, primarily due to inventory issues rather than a decline in consumer demand.
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Despite the stark miss of nearly $900 million in expected sales, Eli Lilly's CFO reassured investors that he does not anticipate significant inventory fluctuations moving forward.
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The overall market for GLP-1 receptor agonist drugs remains robust, with Eli Lilly’s share price increasing over 50 percent year-to-date, even as competitors like Novo Nordisk face similar sales challenges.
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Big Tech is set to invest a record $200 billion in AI-related capital expenditures in 2024, with Amazon leading at $75 billion and significant commitments from Meta and Alphabet.
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While Wall Street remains skeptical about the immediate returns on these investments, analysts acknowledge the long-term potential, with successful earnings reports boosting shares for Amazon and Alphabet, while Meta and Microsoft faced declines due to spending concerns.
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Companies are attempting to monetize AI investments through new products and services, with Microsoft, Meta, and Amazon reporting growth in cloud services linked to their AI initiatives.
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Americans will see an increased annual employee deferral limit in workplace retirement plans for 2025, rising to $23,500, while catch-up contributions remain at $7,500 for those aged 50 and older, with a new higher limit of $11,250 for employees aged 60 to 63.
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The IRS also raised income phase-out ranges for contributions to traditional and Roth IRAs, with single taxpayers now having a range of $79,000 to $89,000 for deductible contributions and married couples filing jointly from $126,000 to $146,000.
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Lastly, the income limit for the Saver’s Credit has increased to $79,000 for married couples filing jointly and $39,500 for singles, aiming to support low- to moderate-income workers in building retirement savings.
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China's upcoming fiscal stimulus package is expected to be significantly influenced by the outcome of the U.S. presidential election, with a potential increase of 10-20% if Trump wins due to his proposed tariff hikes, which would negatively impact China's exports.
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Despite local government constraints and a cautious approach to stimulus amidst ongoing real estate slumps and consumer demand issues, there are indications that China is considering over 10 trillion yuan in debt issuance to bolster the economy.
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Analysts highlight that while the expectations for stimulus appear uniform, actual consumption support may primarily come from property market intervention, as local governments struggle with tax enforcement and funding utilizations.
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Comcast's possible spinoff of its cable networks presents challenges for MSNBC, which currently depends on NBC News for its reporting resources, potentially requiring a major shift in its operations and programming model.
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If the company proceeds with the separation, MSNBC may either build its own independent news team, negotiate continued access to NBC News' resources, or pivot to focus more on opinion-based content, each option carrying implications for its identity and viewership.
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The broader news industry also faces challenges as traditional media adjusts to the rise of digital platforms, highlighting the need for innovative partnerships and strategies in an evolving media landscape.
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