Below are the critical news highlights that investors should consider as they kick start their trading day:
1. Stock Market Decline
On Friday morning, it looked like the stock market might have a bad week. The Dow Jones Industrial Average and S&P 500 had dropped by about 1% and 1.4% during the week, and the Nasdaq Composite fell by 2%. Investors were worried that the Federal Reserve might increase interest rates. While most experts thought rates would stay the same in the September meeting, there was a 1-in-2 chance that they might go up in November. Keep an eye on the live market updates.
2. Apple’s Trouble in China
Apple’s stock went down for two days in a row because there were reports that Chinese government workers might not be allowed to use iPhones. After a 4% drop on Wednesday, the stock went down more than 3% on Thursday. China hasn’t confirmed these reports from Bloomberg, but investors were concerned that Apple might get caught in the tensions between China and the U.S. China is a big market for Apple, making up 18% of its total revenue and where most Apple products are made.
3. GM’s Employee Pay Situation
General Motors (GM), suggested a new contract for workers represented by the United Auto Workers (UAW). The proposal included a 10% raise for most workers, and newer workers could see their pay go up by as much as 56% over four years. This would be one of the biggest pay raises in years. However, UAW President Shawn Fain didn’t like the offer and called it “insulting.” This comes after the UAW accused GM and Stellantis of not negotiating in good faith. The car companies want to avoid a costly strike before the union contracts expire on September 14th.
4. Legal Trouble for Former FTX Executive
A former executive from FTX, Ryan Salame, pleaded guilty to campaign finance and money-transmitting crimes in a New York court. He agreed to give up over $1.5 billion, which will go to the U.S. government, and pay $5 million to FTX’s creditors. Salame admitted to donating tens of millions of dollars to political campaigns using his name, but the money came from Alameda Research, which is part of FTX. He said he did this for about a year at the request of then-FTX CEO Sam Bankman-Fried. Salame is out on bail and could face up to 10 years in prison.
5. Walmart Adjusts Employee Pay
Walmart, has lowered the starting pay for employees who stock shelves and prepare online orders by about a dollar per hour. This change doesn’t affect the pay of current employees in those roles, and some experienced workers even got raises. Walmart did this to make starting pay the same for cashiers and stockers. In March 2021, Walmart raised the pay for personal shoppers and stockers when online sales were increasing. Walmart, is the biggest private employer in the U.S., so experts watch it closely to understand inflation and the job market.
Investors should watch these key developments: stock market volatility with Dow Jones and S&P 500 down for the week, Apple’s declining stock due to China tensions, GM’s wage proposal facing UAW criticism, FTX executive’s legal issues, and Walmart’s pay adjustments. These factors have implications for market trends and investment strategies.