While the stock market portrays a picture of stability, Federal Reserve officials are expressing concerns about the potential impact of tariffs on the U.S. economy. Corporate earnings also reveal mixed signals, with investors reacting to both positive and negative results. Meanwhile, the Reserve Bank of India is anticipated to cut interest rates for the first time in five years, aiming to stimulate a slowing economy.
If investors were to judge the stability of the economy by looking at the stock market , its two-day winning streak might lead investors to think that it's business as usual. The market's response to corporate earnings would also support that thesis. Investors are selling off companies that didn't meet their expectations, such as Google-parent Alphabet and Advanced Micro Devices, and flocking to firms that they think will do even better in the future, like Palantir.
(Whether that's a fair, or even realistic, belief is up for debate – but it's certainly not out of the ordinary.) But U.S. Federal Reserve policymakers are being unusually open about their concerns over the potential impact of tariffs. If investors listen to them, they will perhaps find that the calm in markets is deceptive. That's a break from Fed officials' typical stance of not commenting on fiscal policy, suggesting that tariffs could have serious effects on the U.S. economy. The Dow Jones Industrial Average, however, dipped around 0.4% ahead of the central bank's interest rate decision on Friday, when it's expected to cut rates.— which can complete complex multistep tasks on a user's behalf, rather than a user having to walk them through every individual step. That's a 22% year-on-year jump from 2023 and the fastest growth since 2016, according to CNBC calculations of public numbers. Huawei's smartphone shipments in mainland China surged by 37% last year, superseding, beating expectations and up 18% from $9.92 billion a year ago. Net income increased 15% to $3.18 billion from $2.77 billion a year earlier. However, its shares fell more than 4.6% in extended trading. Investors were concerned that revenue from Qualcomm's licensing business would remain flat, after reporting stronger-than-expected fourth quarter results and guidance. Even though the stock gave up some of those gains on Wednesday, the software company's valuation appears way out of market fundamentals. CNBC Pro's John Melloy and Christopher HayesNewly appointed Reserve Bank of India Governor Sanjay Malhotra after addressing a press conference, in Mumbai on Dec. 11, 2024. India likely to cut benchmark rates for the first time in nearly five years as economy slows, inflation eases As inflation in India eases, the Reserve Bank of India has room to cut interest rates to stimulate a slowing economy. Economists expect the country's central bank to lower its repo rate by 25 basis points to 6.25% on Friday, when its policy meeting concludes. If the RBI does lower rates, it will be the first cut in nearly five years. Investors will also scrutinize the statement of the new RBI Governor Sanjay Malhotra to assess the direction of the bank's monetary policy
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