What Moved The Markets This Week 📈
Fed Pauses Rate Hikes, AMD's New AI Chip To Rival Nvidia, Food-Chain Cava IPO, Toyota's New 1,000 Kilometer EVs, BlackRock To Launch Bitcoin ETF, and ADBE + ORCL Earnings
Sunday Morning Markets
Trading Week 24, covering Monday, June 12 through Friday, June 16. Your weekly financial markets update, in less than 5 minutes.
The Week In Review ⏪
Central banks’ interest rate changes:
China cuts rates
U.S. pauses
ECB hikes again
Inflation data cools off. CPI +4.0% & PPI +1.1% YoY
AMD unveils new AI chip to compete with Nvidia
Food-chain Cava soars as much as 117% at IPO
Toyota’s next-gen EV batteries with 1,000 km range
BlackRock plans to launch Bitcoin ETF
Earnings from Adobe, Oracle — see breakdowns below
US Markets 🇺🇸
Fed pauses interest rate hikes but projects two more increases by the end of the year. Powell noted it could be a couple of years before rate cuts, and that he does expect there to be losses in commercial real estate.
Inflation cooled in May to lowest level in two years as the CPI rose 0.1% during the month of May and 4.0% for the year. Excluding food and energy, Core CPI rose 0.4% and 5.3%, respectively. Numbers were in line with estimates.
Wholesale inflation fell sharply in May as the Producer Price Index showed prices tumbled 0.3% during the month and rose just 1.1% for the year. Core PPI decelerated to 2.8% for the year, down from 3.3%.
US retail sales rise again and point to a resilient US consumer as volume increased 0.3% in May after jumping 0.4% in April, coming in well above the 0.1% decline expected.
AMD reveals new AI chip to challenge Nvidia with plans to start shipping to customers later this year. “We think about the data center AI accelerator [market] growing from something like $30B this year to over $150B in 2027.”
Grubhub lays off 15% of its workforce, or about 400 employees, citing a need to maintain “competitiveness” in the food delivery space. 780 startups have eliminated 208K positions so far in 2023, according to layoffs.fyi.
Cava soars as much as 117% in market debut as the stock closed at $43.78, well above its IPO price of $22 per share. $CAVA is now trading at a $4.3B market cap, with net sales of $564.1m in 2022, 12.8% higher than the year earlier.
Rest of World 🌏
Toyota announces next-gen battery EVs under a more aggressive push toward all-electric vehicles under new CEO Koji Sato. The new unit, named BEV Factory, is aiming to produce EVs with a range of 1,000 kilometers (620 mi).
China cuts its key policy rate as the economy’s post-Covid recovery continues to lose momentum. The decision comes following a string of poor economic data releases including record-high youth unemployment of 20.8% in May.
ECB hikes interest rates again to the highest level in 22 years, taking its key rate to 3.5%. Despite inflation cooling recently, the ECB actually raised its expectations to 5.4% for this year, 3% for 2024, and 2.2% for 2025.
EU charges Google with anti-competitive practices in its ad tech business. The commission suggested that Google might have to break up the business in order to address the concerns raised.
Crypto ⚡
BlackRock files for a new Bitcoin ETF as the world’s largest asset manager aims to enter the Crypto space. They plan to use Coinbase ($COIN) for custody and the exchange’s spot market data for pricing.
Crypto.com is winding down its institutional business in the United States, citing "limited demand" in light of the "current market landscape." The move won't affect the company's retail operations.
Earnings Reports 💰
See more breakdowns on our Twitter page.
Weekly Poll 🗳️
Week Ahead 📅
Monday
US - Home Builders Conf. Index (JUN)🇺🇸
Tuesday
US - Building Permits (MAY)🇺🇸
US - Housing Starts (MAY)🇺🇸
Germany - PPI Inflation (MAY)🇩🇪
Earnings Reports: FedEx💰
Wednesday
Canada - Retail Sales (APR)🇨🇦
UK - CPI Inflation (MAY)🇬🇧
Thursday
US - Existing Home Sales (MAY)🇺🇸
US - CB Leading Economic Indicators (MAY)🇺🇸
UK - BoE Interest Rate Decision🇬🇧
Japan - National CPI Inflation (MAY)🇯🇵
Earnings Reports: Accenture, Darden, Carnival, FactSet, Manchester United💰
Friday
US - S&P Services PMI (JUN)🇺🇸
UK - Retail Sales (MAY)🇬🇧
Europe - S&P Composite PMI (JUN)🇪🇺
Germany - S&P Manufacturing PMI (JUN)🇩🇪
Earnings Reports: CarMax💰
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