A Tesla Inc store is seen in Beijing, China, Wednesday, May 31, 2023.
Bloomberg | Getty Images
This report is from today’s edition of CNBC’s Open Daily, our new international markets newsletter. The CNBC Daily Open keeps investors up-to-date with everything they need to know, no matter where they are. Like what you see?you can subscribe here.
what you need to know today
Leader speaking
In his first televised address since the Wagner Group marched into Moscow, Russian President Vladimir Putin said the organizers of the armed rebellion would be “brought to justice” and his army would crush the rebellion. Separately, U.S. President Joe Biden said the U.S. “has nothing to do with (these incidents), it’s part of the struggle within the Russian system.”
“Mortgage Disaster”
Britain’s shadow finance minister has warned that the UK is facing a “mortgage disaster”. A 50 basis point rate hike by the Bank of England last week will push up mortgage lending. This will bring the number of households without savings to 7.8 million, or 30% of households nationwide, by the end of this year, estimates the National Institute for Economic and Social Research, an independent think tank.
apple sprouts
In addition to Apple’s new Vision Pro headset, the tech company is reportedly planning to update all of its major products in the next 12 months. Upcoming launches include a second version of the Apple Watch Ultra, a new 30-inch iMac (which will be the company’s largest all-in-one desktop to date), an iPad Pro with an OLED screen, and a MacBook Pro with Apple’s new screen. M3 chips and other products.
(PRO) Is the S&P about to drop?
Morgan Stanley chief U.S. equity strategist Meyer Wilson believes that “the risk of a major correction (in the stock market) is rarely so great” because four factors will weigh on the market. Wilson, who predicted a market decline last year, saw the S&P 500 fall to 3,900 in the fourth quarter. about 10% It was down from Monday’s close and one of the most bearish outlooks on Wall Street.
the bottom line
An attempted insurgency in Russia grabbed headlines over the weekend, but investors don’t seem to be paying attention to it. Instead, “macro factors are likely to remain the key drivers of risk assets,” Ajay Rajadhyaksha, Barclays global research chair, wrote in a note on Monday.
In fact, tech stocks tumbled across the board as investor enthusiasm for artificial intelligence faded and was replaced by a clearer view of the state of today’s economy.
letter The company’s shares fell 3.27% after UBS downgraded the company, citing intense competition in the artificial intelligence space. Nvidia and Yuan Sympathy fell, each down more than 3%.but it’s not that bad Tesla’s Shares of the electric car maker tumbled 6.06% after Goldman Sachs downgraded the electric car maker due to a “difficult new vehicle pricing environment.”
Tech sell-off weighs on stocks Nasdaq Composite Index, down 1.16%.this S&P 500 Index down 0.45%, while Dow Jones Industrial Average down 0.04%.
There may be more pain to come. The rally in tech stocks is “losing steam,” according to German bank Berenberg. As a future-proof industry, technology needs to lower interest rates if it wants to continue to rise.
But with the Fed emphasizing that it will keep rates high for now, lower rates would mean a “sharp economic slowdown,” wrote Berenberg equity strategist Jonathan Stubbs. Stubbs mentioned that this would be “bad for technology,” but in reality, no one would benefit from it.
Still, with just days left until the end of June, the three major stock indexes are on track to end the second quarter higher. It looks like a recession is still months away — as it has been for the past year. Pray that we can hide from it for so long that it gets tired of catching up to us.