This Week is Crucial for Investors

Focus on Inflation & Fed Policy

Author

Pete Tan
June 10, 2024

In partnership with

Good Morning. The stock market paused last Friday after positive economic data (it is strange, I know). This week, all eyes are on inflation readings (CPI & PPI) and the highly anticipated FOMC meeting. Earnings season winds down, with ADBE and RH as key names to watch.

🙏 Although the odds of rate cut in June is near zero, the market is looking forward at Sept now! Will Fed follow ECB and Bank of Canada? 🤷 

MARKET SUMMARY
S&P 500 drop 0.11% at 5347.

Nasdaq drop 0.11% to 19000.

Dow Jones drop 0.22% to 38,799

In today’s email:

  • LVMH gets a Successor!

  • Antitrust Scrutiny in AI Industry

  • ECB and Bank of Canada Cut Interest Rates

  • Nvidia Completes 10-1 Stock Split

  • Nonfarm Payrolls Exceed Expectations

BUSINESS
LVMH gets a Successor!

Frederic Arnault, son of LVMH chair Bernard Arnault, is now the Managing Director (aka the HEAD) of Financiere Agache. He'll also join the board of the family holding company, adding to his role as CEO of LVMH watches. 🕰️

TECH
Antitrust Scrutiny in AI Industry

The US Justice Department and FTC are gearing up for potential antitrust investigations into Microsoft, OpenAI, and Nvidia. Concerns are growing about concentration in the AI sector. Microsoft and Nvidia are major players, with Nvidia's market value recently surpassing $3 trillion. 💻

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INTEREST RATE
ECB and Bank of Canada Cut Interest Rates

For the first time since 2019, the European Central Bank has cut interest rates, creating a bigger policy gap with the Federal Reserve. This move aims to ease financial pressure on consumers. 🍁BoC also reduced its key policy rate, becoming the first G7 country to do so. This will help relieve highly indebted consumers, though further changes will depend on future data. 📊

STOCK SPLIT
Nvidia Completes 10-1 Stock Split

🔟 It is now official. Shareholders will see 10x more shares at 1/10th the price. It's mainly a cosmetic change with no impact on the company's value. ➡️1️⃣

ECONOMY
Nonfarm Payrolls Exceed Expectations

📈 Nonfarm payrolls increased by 272,000, surpassing the expected 180,000. This strong job growth dampens expectations of imminent Fed rate cuts. Do expect market to open weaker this week!💼

Alright! This should get you ready for the markets this week!

May Your Profits Grow!

Pete
Invest with Pete

The information provided in this newsletter is for informational purposes only and does not constitute financial advice. Readers should seek their own independent financial advice before making any investment decisions. Please note that while Pete is a portfolio manager, the opinions expressed in this newsletter are his own and do not represent the views of any organization. Always perform your own research and due diligence before investing.