What Moved The Markets This Week

Sep 22, 2024

Sunday Morning Markets

Trading Week 38, covering Monday, Sep 16 through Friday, Sep 20. Your weekly financial markets update, in less than 5 minutes.

Fed slashes interest rates by 50 basis points in its first major cut since the pandemic. With inflation easing and job growth slowing, the move signals concerns over future economic stability.
Existing home sales drop to their lowest since pandemic with the median sales price rising 3% to $433K. However, housing starts surged 15.8% in August, signaling a rebound in construction.
U.S. retail sales rise 0.1% in August, highlighting resilient consumer spending. Despite higher costs, household demand continues to drive economic growth, keeping recession fears at bay.
Alaska Airlines finalizes its $1.9B acquisition of Hawaiian Airlines, after receiving DOT approval. The deal requires the airlines to maintain loyalty rewards and key routes for six years.
Nike CEO John Donahoe retires, replaced by Elliott Hill, a 32-year company veteran. Hill returns as Nike navigates declining sales and aims to revive innovation and company culture.
Microsoft announces a new $60 billion stock buyback and raises its quarterly dividend by 10%. The buyback mirrors its 2021 plan and comes as the company’s AI-driven strategy boosts investor confidence.

Bank of England pauses rate cuts, signaling caution, with an 8-1 vote to hold rates steady. Inflation held at 2.2% in August, but services inflation remained well above target. More cuts are expected this year.
China leaves interest rates unchanged, surprising markets. With weak retail sales, rising unemployment, and falling home prices, the PBOC decision focused on stability over further rate cuts.
Bank of Japan holds its key interest rate at 0.25%, remaining cautious about tightening too quickly. However, August inflation hit 3.0%, exceeding the 2% target, indicating more rate hikes could come soon.
Canada’s inflation rate fell to 2% in August, hitting the BOC’s target. This opens the door for more aggressive rate cuts, with a 50 basis point reduction now increasingly likely next month.
Canadian retail sales surged in August, up 0.5%, following July’s 0.9% gain. This signals a Q3 rebound after two consecutive quarters of decline, driven by strong auto sales and rising demand.

Intel strikes deal to make custom chips for AWS, expanding their AI server chip collaboration. Intel also plans to spin off its foundry business to attract outside funding. Shares jumped 11% this week.
Apple iPhone 16 pre-orders drop by 12.7% in the first weekend compared to the iPhone 15 last year. Analysts attribute this to delayed Apple Intelligence features and strong competition in China.
SpaceX Starlink secures 2,500 aircraft contracts, nearly doubling its in-flight wifi orders. The company inked a new deal with United Airlines to retrofit over 1,000 planes with free onboard wifi.
Amazon adds PayPal as a payment option for Buy with Prime purchases, expanding payment options for third-party sites. Starting in 2025, users can link their PayPal to automatically apply Prime benefits.
Apple rolls out iOS 18 to iPhone users offering custom icons, an updated Control Center, and new shortcuts. More Apple Intelligence features will soon be launched with iOS 18.1.