5 Things To Know In Investing This Week: The Rate Cut Expectations Are 100% Issue
Portfolio Pulse from Gary Brode
This week in investing, the focus is on strong retail sales, high jobless claims, a tech stock sell-off, China's liquidity injection into its banking sector, and larger, weaker Treasury auctions. Despite strong retail sales, the market expects a rate cut by the Fed in September. Jobless claims surged, adding pressure for a rate cut. Tech stocks, including Nvidia, Taiwan Semiconductor, AMD, Microsoft, and Netflix, faced a tough week due to geopolitical tensions and cybersecurity issues. China injected over $100 billion into its banking system to stabilize its economy. Treasury auctions are getting larger with weaker demand, raising concerns about government spending and debt management.

July 24, 2024 | 6:15 pm
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NEGATIVE IMPACT
AMD's stock experienced a decline due to geopolitical tensions and a broader tech sell-off.
AMD's stock was impacted by geopolitical tensions, particularly related to Taiwan, leading to a sell-off in chip stocks.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Microsoft's stock dropped due to a cybersecurity attack and broader tech sell-off.
Microsoft's stock was affected by a cybersecurity attack, contributing to a broader tech sell-off.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
Netflix's stock faced challenges despite a good quarter, with revenue guidance below expectations.
Netflix's stock was impacted by revenue guidance that fell short of consensus estimates, contributing to a broader tech sell-off.
CONFIDENCE 75
IMPORTANCE 40
RELEVANCE 50
NEGATIVE IMPACT
Nvidia's stock dropped over 10% due to geopolitical tensions and a broader tech sell-off.
Nvidia's stock was significantly impacted by former President Trump's comments on Taiwan, leading to a sell-off in chip stocks.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Taiwan Semiconductor's stock faced a decline due to geopolitical tensions and a broader tech sell-off.
Taiwan Semiconductor's stock was affected by geopolitical tensions, particularly related to Taiwan, leading to a sell-off in chip stocks.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70