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☆ IMF sees ‘bumps’ in path to lower inflation
▼ + stars: | 2024-07-16 | by ( Hakyung Kim | ) www.cnbc.com time to read: +2 min

The International Monetary Fund warned Tuesday that upside risks to inflation have increased, calling into question the prospect of multiple Federal Reserve interest rate cuts this year. In its latest World Economic Outlook update, the IMF said "the momentum on global disinflation is slowing, signaling bumps along the path." The rise in sequential inflation in the U.S. earlier in 2024 has put it behind other major economies in the quantitative easing path, the report said. However, IMF chief economist Pierre-Olivier Gourinchas told CNBC's "Squawk on the Street" on Tuesday that one rate cut from the Fed is most appropriate this year, highlighting still-stubborn services and wage inflation as complications to the path to lower inflation. Despite the encouraging CPI report, Gourinchas stated the uptick in inflation earlier in the year indicates that the path toward lower inflation and rate cuts "could take a little bit longer than maybe the markets are expecting."

Persons: Pierre, Olivier Gourinchas, CNBC's, Gourinchas Organizations: Monetary Fund, Traders, U.S . Labor Department Locations: U.S

☆ Here are 6 buying categories cheaper today than they were before the pandemic
▼ + stars: | 2024-07-16 | by ( Gabriel Cortés | ) www.cnbc.com time to read: +3 min

So when worldwide events like the Covid-19 pandemic push inflation well above that 2% target, it can be a real shock to consumers. There are a handful of retail categories, dominated by consumer electronics, that buck the trend and are actually cheaper now than they were before the pandemic, based on a CNBC review of CPI categories in June 2024 compared with June 2019. Same price, better valueEven when annual inflation was at its peak, prices for consumer electronics consistently showed signs of deflation. Such hedonic adjustments — the term BLS uses to describe it's adjustments for changes in item quality — span the whole consumer price index and include categories from men's underwear to home computers to refrigerators. Why televisions continue to be cheapBut hedonic adjustments can't account for everything when the CPI is registering drops in prices.

Persons: it's, Andrew Csicsila, That's, Csicsila Organizations: U.S . Federal Reserve, U.S . Bureau of Labor Statistics, CNBC, CPI, Bureau of Labor Statistics Locations: Americas

☆ Here’s why people have fond memories of the Trump economy
▼ + stars: | 2024-07-16 | by ( Tami Luhby | Alicia Wallace | ) edition.cnn.com time to read: +9 min

CNN —In 2018, Jonathan and Trista Schmier felt the economy was so strong that they could take a big risk. “The customers got very, very upset.”Trista and Jonathan Schmier felt confident enough about the economy during the Trump administration to open a small chain of restaurants. Poll after poll show that voters have more faith in Trump’s ability to handle the economy than President Joe Biden’s. By many measures, however, the economy under Biden — who took office while the pandemic was still underway — has also been strong. “I trust the other guy better,” said Southworth, 74, referring to Trump, whom he voted for in 2016 and 2020.

Persons: Jonathan, Trista Schmier, Angus, ”, Jonathan Schmier, ” Trista, Trump, Andrew Craft, Donald Trump, Joe Biden’s, Biden, Carroll Doherty, Doherty, Trump’s, Barack Obama, Biden —, —, Bernard Yaros, ’ paychecks, Jimmy Carter, ” Yaros, Yaros, Ted Southworth, Ted, Rebecca Southworth, Ted Southworth Southworth, Southworth, Becky Cantrell, Cantrell Organizations: CNN, Fayetteville Observer, USA, Pew Research Center, Biden, Black Americans, Census Bureau, Oxford Economics, Trump Locations: Burger, Fayetteville , North Carolina, Burlington , North Carolina, , Florida

☆ Goldman's top stock strategist explains why small caps are rallying so much
▼ + stars: | 2024-07-16 | by ( Sean Conlon | ) www.cnbc.com time to read: +2 min

The small-cap benchmark Russell 2000 jumped 2% on Tuesday, heading for its fifth straight winning day. Small-cap companies are especially sensitive to rate policy, as their financing costs rise when interest rates are high. Falling rates could be a boon for these names, said Kostin, Goldman's chief equity strategist, on CNBC's " Squawk on the Street ." In that period, the Russell 2000 Index has added more than 11%, compared with the S & P 500 's 4% advance. In 2024, the S & P 500 has surged more than 18%, while the Russell 2000 has added 10%.

Persons: Goldman Sachs, David Kostin, Jerome Powell, Russell Organizations: Russell, Federal

☆ Stock futures rise slightly following a record-setting session for the Dow: Live updates
▼ + stars: | 2024-07-15 | by ( Lisa Kailai Han | ) www.cnbc.com time to read: +2 min

A trader works on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., July 3, 2024. U.S. stock futures were slightly higher on Monday after the Dow Jones Industrial Average closed at a record high. The market also continued its rotation into small-cap stocks, with the Russell 2000 rising 1.8% during Monday's session. The Russell 2000 posted a 6% gain last week. Lee said that small-cap stocks look comparatively more oversold, with valuations even lower this time around.

Persons: Donald Trump, Russell, Tom Lee, Lee, Morgan Stanley, UnitedHealth, Charles Schwab Organizations: New York Stock Exchange, Dow Jones, Nasdaq, Dow, Republican, GOP, Fundstrat Global Advisors, Bank of America Locations: New York City, U.S

As long as inflation continues to slow, mortgage rates should ease throughout the remainder of 2024, improving affordability for hopeful homebuyers. See more mortgage rates on Zillow Real Estate on ZillowMortgage CalculatorUse our free mortgage calculator to see how today's mortgage rates would impact your monthly payments. 15-Year Fixed Mortgage Rates Go Down (-0.41%)The average 15-year mortgage rate is 5.66%, 41 basis points lower than last week. Mortgage Refinance Rates30-Year Fixed Refinance Rates Decrease (-0.39%)The average 30-year refinance rate is 7.45%, 39 basis points down from last week. Mortgage rates also rose dramatically in 2023, though they started trending back down toward the end of the year.

Persons: you'll, It's, refinance Organizations: Federal, of Labor Statistics, Zillow, FHA Locations: Chevron

☆ The Fed shouldn't cut rates at all this year as the US is poised for a 2nd half rebound, macro strategist says
▼ + stars: | 2024-07-15 | by ( Filip De Mott | ) www.businessinsider.com time to read: +3 min

The Fed shouldn't cut interest rates at all this year, strategist Jim Bianco said. AdvertisementThe Federal Reserve risks prematurely cutting interest rates right as the US economy is poised to reaccelerate, Jim Bianco told CNBC. Related storiesBacking the notion are promising declines in inflation and a cooling of the labor market. AdvertisementFed fund futures indicate that three 25-basis point interest rate cuts could come this year, starting in September. Interest rates will remain pressured by today's high level of government spending and continued consumer strength.

Persons: Jim Bianco, —, there'll, Brian Rose, Bianco, they're, " Bianco, Charles Schwab, Schwab Organizations: Service, Reserve, CNBC, Bianco Research, Fed, UBS, ISM Services

☆ Powell indicates Fed won't wait until inflation is down to 2% before cutting rates
▼ + stars: | 2024-07-15 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +1 min

Federal Reserve Chair Jerome Powell said Monday that the central bank will not wait until inflation hits 2% to cut interest rates. Speaking at the Economic Club of Washington D.C., Powell referenced the idea that central bank policy works with "long and variable lags" to explain why the Fed wouldn't wait for its target to be hit. Instead, the central bank is looking for "greater confidence" that inflation will return to the 2% level, Powell said. "What increases that confidence in that is more good inflation data, and lately here we have been getting some of that," he said. Powell said at the top of his appearance that he was not intending to make any signals about when the Fed might start to cut interest rates.

Persons: Jerome Powell, Powell, you've, Powell's Organizations: Economic, of Washington D.C

☆ Goldman says this investment is seen as a potential Trump trade and it's jumping Monday
▼ + stars: | 2024-07-15 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +2 min

The Russell 2000 gained 6% last week, its best week of the year, and looks poised to rally further on Monday. A cool consumer price index report last week was seen as a major catalyst for small caps, as it suggested interest rates could go lower. "Many investors view small caps as a potential 'Trump trade,' but the path for small cap outperformance is a narrow one," the note said. Kostin said that small caps outperformed after Trump's 2016 election, but that was when interest rates were much lower. The Goldman note was published before the attempted assassination of Trump on Saturday.

Persons: Donald Trump, Goldman Sachs, Russell, David Kostin, Joe Biden, PredictIt, Kostin, Trump, Goldman Organizations: Republican, Trump

☆ Watch Fed Chair Jerome Powell's remarks on interest rate policy and the economy
▼ + stars: | 2024-07-15 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +1 min

Federal Reserve Chair Jerome Powell is set to address the Economic Club of Washington, D.C., on Monday as traders look for hints about when the central bank will cut interest rates. Powell will partake in a discussion with David Rubenstein, chairman of the Economic Club and co-founder of The Carlyle Group. These will be Powell's first remarks since Thursday's consumer price index report, which showed that prices went down in June on a monthly basis. He also said the central bank did not need to wait for inflation to actually reach its 2% target before cutting rates. The Federal Reserve has a policy meeting at the end of July, but a rate cut is seen unlikely at that time.

Persons: Jerome Powell, Powell, David Rubenstein Organizations: Economic, of Washington, of Washington , D.C, Economic Club, The, Group, Capitol, Fed, Federal, Traders Locations: of Washington ,

Mortgage rates dropped last week and remain low today. This should remove a lot of upward pressure off of mortgage rates and allow them to trend down. See more mortgage rates on Zillow Real Estate on ZillowMortgage CalculatorUse our free mortgage calculator to see how today's interest rates will affect your monthly payments. 15-Year Fixed Mortgage RatesAverage 15-year mortgage rates inched down to 6.17% last week, according to Freddie Mac data. Mortgage rates increased dramatically over the last two years, but they're expected to go down at some point this year.

Persons: you'll, Freddie Mac, it's Organizations: Federal Reserve, Zillow Locations: May's, Chevron

☆ These kinds of businesses are driving a surge in US corporate bankruptcies
▼ + stars: | 2024-07-14 | by ( Bryan Mena | ) edition.cnn.com time to read: +8 min

In the meantime, you can stay up to date on the latest business news with CNN’s Business Nightcap newsletter. Access to credit is especially crucial for small, private businesses that aren’t able raise money through financial markets. “There were a number of programs out there to support small businesses during the depths of the pandemic, and there were relatively fewer filings than usual in 2021 and 2022.”Rising corporate bankruptcies could just reflect a lot of churn occurring in Corporate America, Jamner said. Don’t panicMost banks offer free checking if, for instance, customers have their paycheck direct deposited or they maintain an average minimum balance, reports my colleague Jeanne Sahadi. Marianne Lake, the head of Chase Bank, told the Wall Street Journal last week that Chase might stop offering free checking and other free banking services.

Persons: It’s, ” “, Matt Rowe, Josh Jamner, Jamner, we’re, Reena Aggarwal, “, ”, Banks, Jeanne Sahadi, Marianne Lake, Chase, Jaret, Read, Goldman Sachs, Jerome Powell, Mary Daly, Morgan Stanley, Charles Schwab, Adriana Kugler, Johnson, Kinder Morgan, Tom Barkin, Lorie Logan, Michelle Bowman, John Williams, Raphael Bostic Organizations: CNN’s Business, Washington CNN —, P Global Market Intelligence, CNN, Federal Reserve Bank of Kansas, Nomura Capital Management, Consumer, Institute for Supply, P, ClearBridge Investments, ”, Corporate America, Federal, Fed, Georgetown University Psaros Center, Financial Markets, Chase Bank, Wall, TD Securities, BlackRock, San Francisco Fed, Bank of America, PNC, State, US Commerce Department, US Labor Department, National Association of Home Builders, Johnson, US Bancorp, Discover, Vegas Sands, Northern Trust, Citizens, United Airlines, National Statistics, Federal Reserve, Richmond Fed, Netflix, Novartis, Abbott Laboratories, Marsh, Blackstone, Infosys, Cintas, T Bank, Nokia, American Airlines, European Central Bank, American Express, Fifth Third Bancorp, AutoNation Locations: Federal Reserve Bank of Kansas City, Corporate, UnitedHealth, Wells Fargo, Vegas, Equifax, Northern, McLennan, Schlumberger, Haliburton

Roberto Schmidt | AFP | Getty ImagesIt's no secret that the housing market looks far different than it did a few years ago. While surging mortgage rates and housing prices have taken away consumers' purchasing power, low supply has kept the market competitive. A higher rate, in reality, results in more interest due on a home loan. Housing prices are also central to the equation for everyday Americans decision how much, or if, they can afford to spend. One from the National Association of Realtors found affordability tumbled more than 33% between 2021 and 2023 alone.

Persons: Roberto Schmidt, it's, Dow Organizations: AFP, Getty, Dow Jones, National Association of Realtors, Atlanta Federal, Atlanta Fed Locations: Clarksburg , Maryland

☆ Here are 5 key things we're watching closely in the stock market this week
▼ + stars: | 2024-07-13 | by ( Zev Fima | ) www.cnbc.com time to read: +7 min

Three of our Club rate plays — solar panel company Nextracker , Stanley Black & Decker , and Ford — were our top-performing stocks for the week. Friday also ushered in the start of the second quarter earnings season. Earnings Club name Morgan Stanley reports second-quarter earnings before Tuesday's opening bell. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio.

Persons: Nextracker, Stanley Black, Decker, Ford —, Wells Fargo, Morgan Stanley, Abbott, Goldman Sachs, Charles Schwab, JB Hunt, Johnson, Ally, Kinder Morgan, Horton, Huntington, Jim Cramer's, Jim Cramer, Jim, Ted Pick, Adam Galici Organizations: Dow Jones, Nasdaq, Big Tech, PPI, Abbott Laboratories, Libre Rio, Bank of America, PNC Financial, PNC, Pinnacle Financial, Housing, U.S . Bancorp, Northern Trust Corporation, Citizens, United Airlines, Alcoa, Steel Dynamics, Green Realty, Taiwan Semiconductor, Nokia, Infosys Technologies, McLennan Companies, T Bank Corp, Forestar, Novartis, Textron, Netflix, PPG Industries, AAR, American Express, Fifth Third Bancorp, Halliburton, HAL, Comerica, CMA, Financial, Jim Cramer's Charitable, CNBC Locations: Wells, BlackRock, BLK, U.S, Marsh, Davos, Switzerland

☆ With high prices and mortgage rates, aspiring and current homeowners feel ‘stuck'
▼ + stars: | 2024-07-13 | by ( Alex Harring | ) www.cnbc.com time to read: +7 min

A double whammyFor aspiring homebuyers such as Burress, the combination of high mortgage rates and rising list prices has left them feeling boxed out. The 30-year mortgage rate, a popular option for home financing in the U.S., has bounced around 7% for the past several months. Given this, co-author Jonah Coste said current owners touting these low mortgage rates are undoubtedly better off than those looking to buy a first home today. After welcoming three kids, they're holding off on a fourth until mortgage rates or home prices come down enough to upsize. To be clear, mortgage rates tend to follow the path of Fed-set interest levels, but they aren't the same thing.

Persons: Brandon Bell, Rachel Burress, Burress, who've, that's, That's, Jonah Coste, there's, They're, Coste, they're, Luke Nunley, Nunley, We'd, Jeffrey Roach, LPL, Roach, hasn't, It's, Daryl Fairweather, Lindsey Nicholson Organizations: Getty, Atlanta Federal Reserve, Atlanta Fed, Federal Housing Finance Agency, National Association of Realtors, Federal Reserve, Corcoran Realty, UCG Locations: Austin , Texas, Fort Worth , Texas, Aledo, U.S, Atlanta, Kentucky, Forest Hills, Queens , New York

☆ Here are ways to play the real estate sector in the second half if the Fed cuts rates
▼ + stars: | 2024-07-13 | by ( Alex Harring | ) www.cnbc.com time to read: +3 min

If Thursday's move into real estate stocks is reflective of a bigger trend, there's still time to make winning investments in the housing sector. As big technology stocks tumbled, traders jumped into real estate-connected holdings on a hunch that the sector would benefit from a lower-rate environment. Exactly 55% of analysts rate the stock a buy, with an average price target showing shares can rise close to 15%. About 2 out of every 3 analysts rate the stock a buy, and the average price target implies shares can climb almost 20%. The average price target reflects further upside of more than 16% over the next year.

Persons: Wells, Sam Reid, Reid, Azek, Reuben Garner, Seth Sigman, Sigman Organizations: Home, CNBC Pro, CNBC, Toll, Barclays Locations: U.S, Wells Fargo

☆ A famed economist who called the 2008 recession shares 5 signs the US is on the brink of a downturn — all while the stock market shows concerning weakness beneath the surface of record highs
▼ + stars: | 2024-07-13 | by ( William Edwards | ) www.businessinsider.com time to read: +5 min

But don't bet on a soft landing outcome for the US economy as the Fed gets set to cut rates, says famed economist David Rosenberg. AdvertisementRosenberg ResearchRosenberg's downbeat views on the labor market come amid his skepticism about the impressive rallies in major stock-market indexes like the Nasdaq 100 and the S&P 500. Still, as Rosenberg points out, some say the Fed needs to act urgently as the labor market weakens. Waiting too long to lower interest rates to support the economy will only increase the odds of the job market breaking down." Rosenberg has been consistently bearish on the US economy in recent months, while the labor market has continued to prove him wrong.

Persons: —, David Rosenberg, Rosenberg, Merrill Lynch's, Eli Lilly, Russell, Neil Dutta, Dutta Organizations: Service, Fed, Rosenberg Research, Business, Bureau of Labor Statistics ', Survey, Nasdaq, Nvidia, Microsoft, Meta, Macro

☆ Unexpected bad news for inflation: Wholesale prices rose in June
▼ + stars: | 2024-07-12 | by ( Alicia Wallace | ) edition.cnn.com time to read: +2 min

CNN —Wholesale price inflation unexpectedly accelerated in June to its highest rate since March 2023. That’s an unwelcome development for the US economy one day after the government announced that consumer prices declined on a monthly basis for the first time in four years. On a monthly basis, prices rose 0.2% after holding flat in May. Economists had expected that prices would increase 0.1% on a monthly basis and hold steady at 2.2% annually. Prices dropped on a monthly basis for the first time since May 2020, and annual inflation slowed to 3%, its slowest rate since June 2023.

Persons: That’s, Price, ” Clark Bellin, Bellin Organizations: CNN —, of Labor Statistics, PPI, Federal Reserve

☆ The big change that could come for the economy in September
▼ + stars: | 2024-07-12 | by ( Krystal Hur | ) edition.cnn.com time to read: +5 min

Wall Street’s expectations for a September rate cut rose to roughly 93% on Thursday from 73% the day before, according to the CME FedWatch Tool. “A September rate cut should be a done deal at this point,” wrote Ron Temple, chief market strategist at Lazard, in a Thursday note. Some economists worry that if the Fed doesn’t cut rates by then, cracks could begin to deepen in the labor market. A September rate cut “may not be the magic elixir some investors are seeking,” wrote Brent Schutte, chief investment officer at Northwestern Mutual Wealth Management, in a Monday note. On an annual basis, consumer prices are increasing at their slowest pace since June 2023, matching the lowest annual rate since early 2021.

Persons: ”, Ron Temple, Jerome Powell didn’t, Brent Schutte, Alicia Wallace, —, Elisabeth Buchwald, McDonald’s, Read Organizations: CNN Business, Bell, New York CNN, Federal Reserve, Lazard, Northwestern Mutual Wealth Management, Bureau of Labor Statistics ’, Taco Bell Locations: New York, Burger

☆ 10 things to watch in the stock market Friday, including bank earnings and inflation
▼ + stars: | 2024-07-12 | by ( Jeff Marks | ) www.cnbc.com time to read: +4 min

10 things to watch Friday, July 12 Will the market rotation out of year-to-date tech winners and into the rest of the market continue? JPMorgan reported a top and bottom line beat: Revenue of $50.99 exceeded estimates of $49.87 billion; adjusted earnings per share (EPS) of $4.26 beat by 7 cents. No change to full-year 2024 expectation of $91 billion net interest income (NII) and $92 billion in adjusted expense. Revenue of $20.69 billion beat estimates of $20.29 billion and EPS of $1.33 beat by 4 cents. NII of about $13.5 billion beat estimates of $13.22 billion.

Persons: Charlie Scharf's, Wells, Tesla, Morgan Stanley, Jim Cramer's, Jim Cramer, Jim, Spencer Platt Organizations: Nasdaq, JPMorgan, Investment, Equity, Wells, Citigroup, UBS, Technologies, Citi, Wester Digital, Jim Cramer's Charitable, CNBC, Traders, New York Stock Exchange, Getty Locations: Wells Fargo, New York City

☆ Here's why Wells Fargo stock is down 7% despite the bank's quarterly earnings beat
▼ + stars: | 2024-07-12 | by ( Morgan Chittum | ) www.cnbc.com time to read: +3 min

Every weekday the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. Wells Fargo stock tumbled 7% after the bank's second-quarter report despite beats on revenue and earnings. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB.

Persons: Jim Cramer, Dow, We're, Wells, Morgan Stanley, Morgan, Jim Cramer's, Jim Organizations: CNBC, Big Tech, Nvidia, Investors, Wells, Abbott Laboratories, . Capital, Abbott Labs Locations: Wells Fargo, NVDA

☆ Gold eases, but set for weekly gain on Fed rate cut bets
▼ + stars: | 2024-07-12 | by ( ) www.cnbc.com time to read: +2 min

Gold prices edged lower on Friday, but were headed for a third straight week of gains as cooler-than-expected U.S. inflation data boosted hopes of the Federal Reserve cutting interest rates in September. Gold prices edged lower on Friday, but were headed for a third straight week of gains as cooler-than-expected U.S. inflation data boosted hopes of the Federal Reserve cutting interest rates in September. "Inflation outlook and interest rate picture have moved in favor of gold this week. As we move closer to a lower interest rate environment, conditions could be ripe for gold to set new record highs before the year is out," said Tim Waterer, KCM Trade's chief market analyst. Lower interest rates reduce the opportunity cost of holding non-yielding bullion.

Persons: Tim Waterer, KCM, Mary Daly, Austan Goolsbee, Waterer Organizations: Federal Reserve, San Francisco Fed Bank, Chicago Fed Bank Locations: U.S

☆ Japan's Nikkei falls over 2% amid suspected yen intervention; U.S. inflation cools more than expected
▼ + stars: | 2024-07-12 | by ( Lim Hui Jie | ) www.cnbc.com time to read: +1 min

Early Friday, the yen also suddenly strengthened against the dollar after the U.S. inflation data release, prompting analysts and traders to suspect a possible intervention from the country's ministry of finance. The yen traded at 158.55 against the U.S. dollar at roughly 12 a.m. Tokyo time after trading around 161.52 late Thursday. The currency strengthened further against the greenback, currently standing at 158.23. On Friday, Japan's top currency diplomat Masato Kanda said that authorities will take action as needed in the foreign exchange market. Reuters also reported that Kanda said recent yen moves were somewhat rapid, but declined to comment on whether authorities had intervened in the currency.

Persons: Masato Kanda, Kanda Organizations: Federal Reserve, U.S, greenback, Reuters Locations: Asia, Pacific, U.S, Tokyo

☆ 'Why would you tinker with it if it's not broken?': Economist on why the Fed may not cut rates in September
▼ + stars: | 2024-07-12 | by ( Jenni Reid | ) www.cnbc.com time to read: +1 min

Jerome Powell, chairman of the US Federal Reserve, during a Senate Banking, Housing, and Urban Affairs Committee hearing in Washington, DC, US, on Tuesday, July 9, 2024. Markets now firmly expect a September interest rate cut in the U.S., but the Federal Reserve has a strong reason to hold off, according to economist Carl Weinberg. Money market pricing for a rate cut at the Fed's fall meeting rose from around 70% to more than 90% on Thursday, according to LSEG data, after a softer-than-expected consumer price index print. Fed Chair Jerome Powell had already bolstered expectations of such a move when he said earlier this week that there were risks in keeping interest rates too high for too long — comments interpreted as "modestly dovish" by analysts. However, there are also risks to easing monetary policy that cast a cloud over the rate cut outlook, Weinberg, chief economist at High Frequency Economics, told CNBC's "Squawk Box Europe" on Friday.

Persons: Jerome Powell, Carl Weinberg, Weinberg, CNBC's Organizations: US Federal Reserve, Banking, Housing, Urban Affairs Committee, Federal Reserve Locations: Washington , DC, U.S

☆ What's driving Friday's big market comeback, a day after heavy tech selling
▼ + stars: | 2024-07-12 | by ( Matthew J. Belvedere | ) www.cnbc.com time to read: +5 min

Green day : A lot was working in the stock market on Friday. But it was hard to see through an ugly rotation out of this year's Big Tech winners in favor of more interest rate-sensitive stocks. Many of our hot tech stocks took a breather this week. It's more evidence of why Jim Cramer calls these two names "own, don't trade" stocks. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.

Persons: Jim Cramer, Dow, Russell, Eli Lilly, Lilly, Wells Fargo, NII, toolmaker Stanley Black, Decker, Morgan Stanley, That's, Jim Cramer's, Jim Organizations: CNBC, Big Tech, Federal, Nasdaq, PPI, Fed, Meta, Nvidia, Apple, Ford, Abbott Laboratories, Jim Cramer's Charitable, Financial, Nurphoto, Getty Locations: Morphic, Wells, New York City, Mairo

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