Stock futures lower following the S&P 500’s third straight losing day

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European Markets Flat as Global Investors Wait for Fed

European markets were muted on Wednesday as new aggressive comments from a US Federal Reserve policymaker hesitated investors.

The pan-European Stoxx 600 index was flat in early trading, with telecoms losing 0.5% while household goods rose 0.2%.

– Elliot Smith

Morgan Stanley says the ‘smart’ EV industry is tech’s next big thing. These are the best stock picks

Morgan Stanley says tech supply chains are about to grow into the next big thing: smart tech features — from EV batteries to chips and self-driving technology.

The investment bank cited its top stock picks that will benefit from this trend.

Pro subscribers can read the story here.

— Weizhen Tan

Fed’s Kashkari Says His Biggest Fear Is Inflation Will Be More Persistent or Higher Than Expected

Federal Reserve Bank of Minneapolis president Neel Kashkari says his biggest fear is that the markets are underestimating how high inflation will go or how intractable it will be, adding that the Fed may need to be more aggressive than expected.

“The big fear that I have in the back of my mind is that we are wrong and the markets are wrong, and this inflation is much more embedded at a much higher level than we value or the markets value he said in a commentary to the market. inflation is expected to fall to 2% within the next two years.

“Then we will have to be more aggressive than I expect, probably for longer, to drive down inflation,” he said at an event at the University of Pennsylvania.

Kashkari also pointed to supply-side shocks that caused “half to two-thirds” of the country’s high inflation.

“The more help we get from the supply side, the less the Fed has to do and the better we can avoid a hard landing,” he said. However, he added that there is some evidence that supply chains are beginning to normalize.

Kashkari is already considered the most aggressive of the US central bank’s 19 policymakers, and expects the Fed to raise its key rate — now at a target range of 2.25% to 2.5% — by the end of next year. another two full percentage points.

—Jihye Lee

CNBC Pro: Citi names energy stock with ‘strongest balance’

The energy sector has been a big winner in this year’s volatile stock market.

But one stock still stands out for its “strongest balance sheet,” according to Citi. It also delivered a string of second-quarter gains that broadly outperformed its major publicly traded competitors.

Pro subscribers can read the story here.

— Zavier Ongo

Hawk Fed?

Many expect aggressive talk from Fed officials later this week, which could lead to a sell-off of risky assets. Some fear that continued and aggressive central bank tightening will send a slowing economy into recession.

“I fully expect Fed Chair Jay Powell and other Fed officials to remain aggressive,” Kristina Hooper, Invesco’s global market chief strategist, said in an email. “Aggressive rhetoric would send stocks down globally in the near term as markets are walking on eggshells, so asset owners should be prepared for near-term volatility.”

— Yun Li

Nordstrom Shares Plunge

Shares of Nordstrom fell more than 13% in extended trading after the company lowered its full-year financial forecast. Nordstrom said it is being challenged by excess inventory and a slowdown in demand.

“Customer traffic and demand declined significantly from the end of June, primarily at Nordstrom Rack,” CEO Erik Nordstrom said in a press release.

However, the company reported fiscal second quarter earnings and revenue ahead of analyst estimates.

— Yun Li

The Valley Voice
The Valley Voicehttp://thevalleyvoice.org
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.

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