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5 Things You Need to Know Before the Stock Market Opens on Wednesday, July 10
Here are five important things investors need to know to start their trading day:
1. Thirty-sixth high
It’s another record close to the S&P 500 Index. The broad market index advanced 0.07% to close the session at 5,576.98. This marks the index’s 36th record close in 2024. Also posting gains, the Nasdaq Composite added 0.14% to close the session at 18,429.29. Like the S&P, the technology-heavy index ended the day at a new record, and both hit all-time highs during the trading session. Unlike those two indexes, the Dow Jones Industrial Average moved 0.13% lower to close at 39,291.97. Follow live market updates.
2. Too loud for too long?
U.S. Federal Reserve Chairman Jerome Powell speaks during a Senate Banking, Housing, and Urban Affairs Committee hearing on the Semiannual Monetary Policy Report to Congress at the U.S. Capitol on July 9, 2024 in Washington, DC.
Bonnie Cash | Getty Images
High inflation is not the only risk facing the economy. While the labor market and the economy remain strong despite signs of a slowdown, keeping interest rates low very high for a long time could threaten both, according to Federal Reserve Chairman Jerome Powell. On Tuesday, the central bank leader said, “Reducing policy restraint too late or too little could unduly weaken economic activity and employment.” His comments come as markets expect a Fed rate cut in September, with another quarter-percentage point cut coming by the end of this year. At their June meeting, FOMC members signaled only one cut while indicating that inflation is on the right track.
3. Division of supply
Aerial photo of high-end residential homes in Brookside Delaware USA
Felixmizioznikov | Istock | Getty Images
Something strange is happening in the housing market. The inventory of new and existing homes is ascendant. At the same time, home prices—which typically cool when supply is high—are also rising. Not only that, the supply of new homes appears to be very high. There is currently a nine-month supply of newly built homes for sale, which is nearly three times the amount of existing homes. The National Association of Home Builders reports that new construction accounts for 30 percent of the total inventory. That’s twice its historical share. What’s behind the split? Well, it’s been driven by the swing in mortgage rates and the impact of the subprime mortgage boom. Uncertainty remains as to whether rates and prices will ease in the second half of the year, as analysts have predicted.
4. Fell
OpenAI CEO Sam Altman (L) speaks with Microsoft Chief Technology Officer and Executive Vice President of Artificial Intelligence Kevin Scott during the Microsoft Build conference at Microsoft headquarters in Redmond, Washington, May 21, 2024.
Jason Redmond | AFP | Getty Images
Microsoft It is giving up his observer seat on the OpenAI board. In a letter to OpenAI seen by CNBC, Microsoft Deputy General Counsel Keith Dolliver wrote that the seat was no longer needed because the company had “witnessed significant progress from the newly formed board.” Dolliver also said the board position had provided insight into its activities without compromising its independence. This comes as Microsoft faces regulatory scrutiny in Europe and the U.S. over artificial intelligence. The European Commission has previously said that Microsoft could face an antitrust investigation. The company previously took the non-voting board seat in November in an effort to delete the remaining questions about Microsoft’s interest in the startup.
5. Path to restructuring
Daniel Dines, CEO and co-founder of UiPath.
Courtesy: UiPath
Automation Software Developer User interface path is cutting its workforce. In an SEC filing, the company said it is laying off about 10% of its employees – about 420 jobs – as part of its restructuring plan. Most of the layoffs will be made by the end of the fiscal first quarter, which ends in April of next year. The company also revealed that it expects to incur between $15 million and $20 million in costs related to layoffs, with total restructuring costs between $17 million and $25 million. This comes after UiPath announced two rounds of job cuts in 2022. The company’s shares fell about 7% during Tuesday’s trading session following the news. The stock has also lost more than half of its value in 2024.
— CNBC’s Brian Evans, Sarah Min, Jeff Cox, Diana Olick, Ryan Browne, Matt Clinch and Todd Haselton contributed to this report.
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