35 minutes ago
China keeps loan prime rate unchanged
China’s central bank governor said there was room to further reduce banks’ reserve requirements and vowed to use monetary policy to support consumer prices.
Bloomberg | Bloomberg | Getty Images
The People’s Bank of China kept the one-year and five-year loan prime rates unchanged at 3.45% and 3.95%, respectively.
The one-year LPR is considered the fixed rate for most household and business loans, while the five-year rate is the benchmark for most property mortgages.
The decision was in line with a Reuters poll that predicted both interest rates would remain unchanged.
China on Friday announced measures to boost its debt-laden real estate market.
— Shreyashi Sanyal
Friday, May 17, 2024 16:06 EDT
The Dow closed at an all-time high of over 40,000 points.
Traders work on the floor of the New York Stock Exchange during morning trading on May 17, 2024 in New York City.
Angela Weiss | AFP | Getty Images
On Friday afternoon, the Dow Jones Industrial Average set a new record closing price.
The 30-stock index rose 134.21 points (0.34%) to settle at 40,003.59. The benchmark crossed the 40,000 mark for the first time on Thursday morning.
The S&P 500 index also rose 0.12%, closing at 5,303.27. Meanwhile, the Nasdaq Composite Index fell 0.07% to end at 16,685.97.
— Lisa Kailai Han
Friday, May 17 2024 2:26 PM EDT
UBS says the Fed will cut interest rates this year due to a “resurgence of disinflation”
Weak economic data in recent weeks has strengthened the argument that investors may finally receive a long-awaited interest rate cut in 2024, UBS argued in a note on Friday.
“We continue to believe that recent economic data support our view that a return to disinflation should allow the Fed to begin easing policy later this year,” the bank said.
UBS added that price pressures have also eased in categories such as housing in recent months, which should help reduce overall inflation.
— Lisa Kailai Han
Friday, May 17, 2024 12:59 PM EDT
Wells Fargo says stock prices will be volatile in the short term, then rise at the end of the year
Stocks have recently climbed to record highs, but Wells Fargo expects that trend to reverse.
Analyst Christopher Harvey said the “bad news = good news” pattern is driving major stock indexes to new records. But he thinks the market is unlikely to continue rising consistently, at least for now.
“We expect volatility in the near term due to the year-end rally towards SPX 5535’s target,” he wrote.
Harvey’s year-end S&P 500 index target implies a 4.5% rise in the benchmark.
— Lisa Kailai Han
