Yahoo FinanceStock market today: S&P 500, Nasdaq hover near record highs after retail sales miss
Techs are continuing to lead an AI-driven rally that investors simply can't afford to miss out on.
- Yahoo Finance Video
'Rise of AI' continues to fuel market strength: Strategist
According to the US Census Bureau, retail sales growth in May slowed to 0.1% versus an expected 0.3% increase for the month. What does this signal from consumers and for potential changes in the Federal Reserve's interest rate policy? BlackRock Global Chief Investment Strategist Wei Li joins Catalysts to discuss her latest note addressing inflation, how it relates to the recent retail sales report, and why AI and tech may lead to an increase in overall inflation. "Despite the fact that markets priced out five cuts by the Fed in 2024 compared to beginning of the year, equities are very strong. And the reason that equities are very strong is because we have seen very strong earnings driven by AI and tech-related names," Li explains. "So there is a bit of a disconnect between what rate markets are suggesting and what equity markets are actually doing. And the reconciliatory term here is the 'rise of AI' and what that means for powering stronger and stronger earnings, which is why we are positive on broad equity market." For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Nicholas Jacobino
ReutersFord plans further job cuts in Europe, German works council says
Ford plans further job cuts in Germany, Spain and the U.K., the head of the worker's council for the US automaker in Germany told Reuters on Tuesday. It is unclear how many additional job cuts are foreseen in Germany under the new restructuring plan, which comes on top of a previous restructuring program, said the head of the works council at Ford's Cologne plant, Benjamin Gruschka. Gruschka added that a decision is expected by end June.
