FED left rates unchanged

[Terrel L. Shields]

Why the markets are surprised at the downturn speaks of the myopic viewpoint of Wall Street who seems to think the FED works for them. They are demanding a half point cut in the rate in September. We will see.

A US recession warning has been issued after global stocks plummeted amid widespread anxiety that the American economy is at risk of a financial "collapse". These concerns have risen after the Federal Reserve's refusal to cut interest rates earlier this week with many analysts wondering if the central bank has left it too late. Despite inflation easing in the United States, the Fed opted to keep the Federal Funds Rate at its 23-year high of between five to 5.25 per cent.​

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This is despite the fact other central banks, including the Bank of England, are taking action to reduce their respective base rates. Traders have now told The Telegraph that they are surprised at the extend of the fall in stocks. This week, Japan’s Nikkei 225 index closed down 2,216.63 points, representing its second-largest points drop in its history. The plunge came about after weaker than projected factory data from the US revealed output fell to an eight-month low in July.​

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Initial weekly jobless benefit claims made by Americans jumped to the highest level in 12 months over the period. Furthermore, the pan-European Stoxx 600 index slumped by 1.7 per cent to a three-month low while Germany’s Dax fell to as much as 1.6 per cent. The Cac 40 in France dropped sharping to one per cent with he FTSE 100 dipping by as much as 0.7 per cent. With markets plummeting sharply over night and this morning, analysts are sounding the alarm that the Federal Reserve needs to take action as soon as possible. The Federal Open Market Committee (FOMC) has only three interest rate announcements left to make this year. Traders are predicting that the committee will need to complete 1.75 percentage points of interest rate cuts this year to prevent a recession taking place. To compound existing market concerns, Big Tech giants posted poor results this week, including Apple and Amazon. Despite Federal Reserve chairman Jerome Powell hinting of a future rate cut in September, investors appear to be spooked. September rate cut has turned sour as investors are now panicking that the central bank isn’t trimming soon enough." The next FOMC meeting is due to take place between September 17 and 18.​

(from the Telegraph)

Also, other sites like Temu has cheaper prices than Amazon. Competitors eating away Amazon market share.

Temu is not even on the top five list of online sales. Target sells more online than TEMU.

 

[Tom D]

Pat Gelsinger has claimed that Intel was months from collapse before he took charge of the semiconductor company.
On his telling, the Silicon Valley company icon that brought the microchip into the mainstream was ready to be sold off for parts, on the brink of offloading its factories for peanuts and giving up on innovation.
Since Gelsinger was appointed Intel’s chief executive three years ago, the company has avoided that fate – but the reality has not been much better.
The company, which has spent most of its six-decade history at the cutting-edge of chip design, is losing ground in key markets such as the servers that sit inside today’s cavernous data centres, while its traditional PC business is in longer-term decline.
The company has lost more than half of its value since the start of 2021, when Gelsinger was hired.
Just look at today’s hottest company to see what might have been. Four years ago, Intel and Nvidia were worth the same – today Nvidia is worth 30 times more. AMD, Intel’s traditional rival, is now more than twice as valuable. Arm, Britain’s most valuable tech company, has also overtaken the company.

 

[Joe Flacco]

I have Intel from 2022 for $27. Sucks.

 

[Joe Flacco]

If the 10-year goes to tag the moving average at around 3%, that would be signaling pretty aggressive rate cuts. Rates probably won't stay there long though. You might have a couple months to take advantage of those rates.

 

[Fernando]

Pat Gelsinger has claimed that Intel was months from collapse before he took charge of the semiconductor company.
On his telling, the Silicon Valley company icon that brought the microchip into the mainstream was ready to be sold off for parts, on the brink of offloading its factories for peanuts and giving up on innovation.
Since Gelsinger was appointed Intel’s chief executive three years ago, the company has avoided that fate – but the reality has not been much better.
The company, which has spent most of its six-decade history at the cutting-edge of chip design, is losing ground in key markets such as the servers that sit inside today’s cavernous data centres, while its traditional PC business is in longer-term decline.
The company has lost more than half of its value since the start of 2021, when Gelsinger was hired.
Just look at today’s hottest company to see what might have been. Four years ago, Intel and Nvidia were worth the same – today Nvidia is worth 30 times more. AMD, Intel’s traditional rival, is now more than twice as valuable. Arm, Britain’s most valuable tech company, has also overtaken the company.

Thanks for the update. I forgotten about my Intel stocks and thought it was doing well.
So Gelsinger conned us in believing Intel was doing well in past few years.

 

[Terrel L. Shields]

 

[Fernando]

I wouldn't worry too much until we see what happens on Monday.
If stock market goes back up, we should be back to business as normal.
I don't see recession coming before November election.
FED saw to that trying not to influence the coming election.

 

[Terrel L. Shields]

 

[Fernando]

With remote jobs, tech companies don't need as many Americans unfortunately.
Layoff now is good excuse to help the bottom line for profits.
When business improves, hire foreigners. It's not just manufacturing jobs.
It's harder for computer major graduates to get entry level jobs with high salaries.

 

[Dublin ohio]

With remote jobs, tech companies don't need as many Americans unfortunately.
Layoff now is good excuse to help the bottom line for profits.
When business improves, hire foreigners. It's not just manufacturing jobs.
It's harder for computer major graduates to get entry level jobs with high salaries.

With the exception of most of the current administration. You are about the most anti American worker individual I have ever run into.