Key Information to Consider Before the Stock Market Begins Trading
Stock futures are holding steady ahead of today's hotly anticipated Federal Reserve interest-rate decision, with investors seemingly taking things slow amid ongoing tensions in the Israel-Iran conflict and preparations for the Juneteenth federal holiday.
1. US Stock Futures - A Waiting Game
With Nasdaq futures flat after a 0.9% drop on Tuesday, and Dow Jones Industrial Average and S&P 500 futures showing little movement, it's clear that the market is on edge. Oil futures are creeping up, trading around $75 a barrel, while Bitcoin and gold futures are taking a dive. The yield on the 10-year Treasury note remains virtually unchanged.
2. Fed's Big Call - Rates to Stay Put
The Fed is expected to keep rates stagnant when they make their decision at 2 p.m. ET today, with markets betting nearly 100% on no hike. If the Fed holds the benchmark rate at 4.25% to 4.5%, as anticipated, President Trump might just feel compelled to unleash more criticism on Fed Chair Jerome Powell for not doing more to lower rates. Powell will address the media at 2:30 p.m. ET.
3. Amazon's AI Cuts - Jassy's Memo
Amazon CEO Andy Jassy has sent a memo to staff, hinting that the retail giant is planning to slim down its corporate workforce due to advancements in artificial intelligence. With AI agents taking over rote work previously handled by humans, the tech behemoth could see a significant reduction in staff. The company had nearly 1.6 million full- and part-time employees as of March 31, according to its latest financials, and Amazon shares are showing a slight increase in pre-market trading.
4. Meta's $100M Bonuses - A Battle for Brains
OpenAI CEO Sam Altman has revealed that Meta Platforms has been offering signing bonuses worth as much as $100 million to lure ChatGPT's AI staffers. Meta is said to be offering even larger annual compensation packages, yet so far none of OpenAI's top talent has taken the bait. This desperate recruitment effort by Meta highlights their apparent frustration with their AI progress.
5. Tesla Under scrutiny - The Austin Factory Pause
Tesla shares are gaining ground in pre-market trading after shedding close to 4% the previous day due to concerns over production levels. According to reports, Tesla plans to halt production for a week at their Austin, Texas plant, beginning the week of June 30. If true, this would mark the third production stoppage in the past year, which could impact supply and cause a ripple effect on investor sentiment. Tesla has yet to confirm these reports.
- Cryptocurrency Market Dip: Amid the market uncertainty, Bitcoin futures are declining, while gold futures follow suit, signaling a possible trend in the finance world.
- ICO Opportunities Amid Stock Market Stagnation: With the stock-market giants like Nasdaq, Dow, and S&P showing little movement, investors might consider turning to Initial Coin Offerings for alternate investment opportunities.
- Impact of AI on Investing: Amazon's plans to reduce its corporate workforce due to AI advancements could potentially disrupt not just the tech sector, but also the investing landscape, as AI begins to sets its foot in various industries.
