CNBC Daily Open: Wall Street ‘dress rehearsal’

This report comes from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

best week
Wall Street has its best week 2024, recovering from the rout earlier this month. This week, S&P 500 Index It soared nearly 3.9%, just one step away from July's all-time high. High-tech Nasdaq Index Even more impressive was the 5.2% gain, while Dow Jones Industrial Average up 2.9%. Meanwhile, the 10-year Treasury bond yield Ministry of Finance fell down The data eased fears of a coming recession.

Oil sinks
US oil prices Shares fell 2% on reports Qatar tells Iran not to attack Israel Israel and Hamas are in ongoing ceasefire negotiations. Qatar's prime minister warned Iran's leaders of the potential consequences of attacking Israel if progress was made, the Washington Post reported, citing diplomats. Negotiations are expected to resume this week after being suspended on Friday. Hamas did not participate in the talks but was briefed by the mediator. U.S. Secretary of State Antony Blinken Arriving in Israel on Sunday as efforts to end the ten-month war between Israel and Hamas intensified.

blocked
U.S. judge temporarily Stop Venu's launchsports streaming service disney, Warner Bros. Discovery and fox. Fubo TV stationCompetitors filed antitrust lawsuits accusing Venu of harming competition. Fubo CEO David Gandler said after the ban was issued: “Today's ruling is not only a victory for Fubo, but also a victory for consumers. This decision will help ensure that consumers have access to a more competitive market and provide more Fubo shares soared 16% after the ruling.

Mpox approved
shares Bavaria Nordic surge 14.8%, second only to Danish biotech companies Submitted data An application has been submitted to the EU medicines regulator to extend the approval of the MPOX vaccine to 12 to 17 years old. Chief executive Paul Chaplin said the move was key to combating the new clade 1b strain of the virus, which mainly affects young people. “More than 70% of cases in Africa right now are in people under the age of 18, so it's critical that our vaccine can be used in this younger age group,” Chaplin told CNBC. The submission was announced by the World Health Organization The MPOX outbreak in Africa was submitted following a public health emergency.

Billion Dollar Marvel
disneyDeadpool and Wolverine starring Ryan Reynolds, Hugh Jackman is now Highest-grossing R-rated movie of all timebeyond Warner Bros. Discovery“Joker”. The domestic box office of “Deadpool and Wolverine” was US$516.8 million, the overseas box office was US$568.8 million, and the global box office has exceeded US$1.085 billion. Despite recent setbacks, the success is a testament to the box office prowess of the Marvel Cinematic Universe and shows that the studio can explore darker themes without alienating audiences.

(PRO) Favorite Technology
Despite market volatility and tech pullback, Bernstein emphasizes Seven Technology, Media and Telecom Stocks The median gain was 26%, providing opportunity against a backdrop of artificial intelligence concerns and economic uncertainty.

For those of you who woke up in a cold sweat, rest assured—it wasn't just a bad dream. Global markets have indeed experienced sharp selloffand Japanese Nikkei 225 Index Plunged 12.4% and Japanese yen carry trade closing Wall Street was dragged down as well. However, The market has since reboundedThe Bank of Japan is reassured that it will not raise interest rates in such a volatile environment and that the U.S. economy is not on the brink of recession.

But JPMorgan sees the recent turmoil as more than just a market anomaly. “Many market participants view the recent burst of various crowded trades as a fluke or a blip, but we believe this is more of a dress rehearsal JPMorgan strategists said in a note.

The financial giant believes that while risks associated with arbitrage trades may re-emerge, significant losses suffered by investors may mitigate their future impact, potentially preventing a full market collapse. Still, JPMorgan warned that concerns about economic growth remain a significant threat.

“Going forward, until the Sharpe ratio of the carry trade turns higher, we do not believe this will be the catalyst for the next major correction,” the firm said. “Instead, we view re-emerging growth risks as a possible trigger.”

last week u.s. inflationRetail sales and employment data may have provided some short-term comfort, but investors are now turning their attention to Federal Reserve Chairman Jerome Powell's upcoming speech in Jackson Hole, Wyoming. Wall Street is eagerly awaiting Powell's outlook on inflation and the broader economy as it could signal the direction of interest rate policy – especially ahead of a potential rate cut in September.

Market expectations for a sharp interest rate cut in September have weakened. According to CME Fed Watch ToolInvestors still expect at least four rate cuts before the end of the year.

However, Goldman Sachs believes that this level Pessimism may be exaggerated. Goldman Sachs noted that “markets are still pricing in more rate cuts than our base case forecast for 2024,” which includes 25 basis points of rate cuts over the next three meetings and each subsequent meeting. “Another weak jobs report would make a 50 basis point cut in September likely, but we think the market has been overweighting this possibility.”

CNBC's Jeff Cox investigates How last week's economic data could influence the Fed's next move.

— CNBC’s Yun Li, Jesse Pound, Spencer Kimball, Brian Evans, Alex Harring, Jeff Cox, Lillian Rizzo, Sarah Whitten, Karen Gilchrist and Sean Conlon contributed to this report.