Macro News
Stock market recovery and volatility
Stock markets showed signs of recovery after recent turbulence, with significant rebounds in the U.S. and Japan following fears of a potential recession. Positive developments, including comments from the Bank of Japan and stabilization in the S&P 500, contributed to the reversal of losses, while analysts suggested that recent earnings reports did not signal a serious economic downturn. (news link)
Federal Reserve interest rate cuts and economic outlook
Markets are anticipating the Federal Reserve to implement significant interest rate cuts to prevent a recession, although concerns arise regarding the potential negative impacts on existing carry trades. While some analysts believe cuts before the September meeting are likely, others argue the U.S. economy is stable enough to avoid emergency measures, with the overall sentiment leaning towards cautious optimism about recession risks. (news link)
Global market sell-off and volatility
Global markets are experiencing significant turmoil, largely due to institutional investors caught in unfavorable carry trades, leading to increased volatility that experts suggest is likely to persist. As retail traders sell aggressively, the combination of low trading volumes and unsettled macroeconomic conditions continues to place downward pressure on stock prices. (news link)
Japanese yen and its impact on global markets
The recent volatility of the Japanese yen has significantly impacted global markets, with experts noting that a correction in the dollar-yen exchange rate may ultimately benefit market stability. Amid these fluctuations, the yen carry trade has been highlighted as a key factor, with tensions surrounding Japan's economic strategies testing the government's efforts to encourage domestic investment. (news link)
Kamala Harris and Tim Walz's political campaign and policies
Kamala Harris and Minnesota Governor Tim Walz have officially launched their campaign as running mates, with both focusing on key issues such as the child tax credit and climate policy. As they seek to define their platform, they are rallying support from Democrats, highlighting Walz's Midwestern approach and his stance on health and economic initiatives. (news link)
Company News
Elon Musk's controversial actions and statements
Elon Musk has confirmed the closure of X's San Francisco office amid escalating tensions with advertisers, citing irreconcilable disagreements with California Governor Gavin Newsom as a "last straw." Additionally, Musk's recent comments regarding the UK riots have drawn criticism from the UK government, further complicating his relationships with both corporate partners and regulatory entities. (news link)
Super Micro stock split and performance
Super Micro has announced a 10-for-1 stock split but is facing challenges with disappointing margins and profit forecasts, leading to a drop in its shares following the earnings report. Despite providing guidance that topped estimates for the current quarter, overall Q1 earnings fell short, causing concerns among investors regarding the future performance of the stock. (news link)
Novo Nordisk posts earnings miss and cuts profit outlook
Novo Nordisk reported disappointing earnings, missing profit forecasts and subsequently lowering its operating profit outlook, which has impacted its market momentum. Meanwhile, European shares have seen gains driven by earnings boosts, although Novo Nordisk's weight loss drug, Wegovy, continues to face a supply shortage. (news link)
Airbnb shares drop due to earnings miss and slowing demand
Airbnb shares plummeted by up to 16% following a disappointing earnings report that revealed a 15% decline in second-quarter profit, despite an 11% increase in revenue from stronger bookings. The company has issued a soft outlook, indicating signs of slowing demand in the U.S. travel market. (news link)
