1. More Powell: Federal Reserve chair Jerome Powell has hinted at an interest rate cut later this month, sending stocks to record highs. Powell appeared to make the case for a cut in remarks to Congress on Wednesday. In his semi-annual testimony, he cited anxiety around unresolved trade tensions and worries over the weakness of the global outlook, while noting that inflation continues to run below the Fed's target.
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Where U.S. stocks are heading | | Dow Futures | | Nasdaq Futures | | S&P Futures | +59.00 | | +23.00 | | +6.50 | +0.22% | | +0.29% | | +0.22% | | | |
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| Japan | | China | | U.K. | Nikkei 225 | | Shanghai Composite | | FTSE 100 | +110.05 | | +2.46 | | +3.99 | 21,643.53 | | 2,917.76 | | 7,534.68 | +0.51% | | +0.08% | | +0.05% | | | |
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Biggest Winners | Freeport-McMoRan Inc | +2.65% | | Western Digital Corp | +1.20% | | Micron Technology Inc | +0.91% | | Nike Inc | +0.87% | | Biggest Losers | Iron Mountain Inc | -1.93% | | Comerica Inc | -1.37% | | Take-Two Interactive Software Inc | -1.23% | | J B Hunt Transport Services Inc | -1.03% | | | | | | | | |
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News: What you need to know about the markets | | | | More Powell; France's tech tax; Market records | By Julia Horowitz, CNN Business | | 1. More Powell: Federal Reserve chair Jerome Powell has hinted at an interest rate cut later this month, sending stocks to record highs. | | Powell appeared to make the case for a cut in remarks to Congress on Wednesday. In his semi-annual testimony, he cited anxiety around unresolved trade tensions and worries over the weakness of the global outlook, while noting that inflation continues to run below the Fed's target. | | A strong jobs report for June hasn't changed the outlook, he added. | | "Since the June [Fed] meeting and for a period before that, the data have continued to disappoint," he said. | | Investors read that as a sure sign that the Fed will ease interest rates at its July meeting, though questions remain on the magnitude of a potential move. The Dow, Nasdaq and S&P 500 all hit intraday highs on Wednesday. | | Powell's testimony continues Thursday in front of the Senate Banking Committee starting at 10 a.m. ET. | | Also on the calendar: the European Central Bank will publish the minutes of its June meeting at 7:30 a.m. ET. | | 2. France's tech tax: French lawmakers could approve a bill on Thursday that would impose a new tax on large tech groups and risk a costly backlash from the Trump administration at a tense moment for global trade. | | The United States Trade Representative announced a so-called Section 301 investigation on Wednesday, warning that the proposed tax could discriminate against American companies. | | The move means the United States could end up imposing retaliatory tariffs on French products. | | "The United States is very concerned that the digital services tax which is expected to pass the French Senate tomorrow unfairly targets American companies," US Trade Representative Robert Lighthizer said. | | The measure would impose a 3% tax on revenue earned by large internet companies in France. It would apply to businesses with global revenue of more than €750 million ($845 million) and €25 million ($28 million) in France. | | The investigation launched by the Trump administration is the same type that served as the basis for US tariffs on $250 billion worth of Chinese goods. That inquiry lasted seven months before President Donald Trump decided to move ahead with the first round of tariffs. | | 3. Market records: US stock futures point higher ahead of more testimony from Powell. | | The Dow is set to rise 46 points, or 0.2%. The S&P 500 is also tracking up 0.2%, while the Nasdaq could jump 0.3% one day after it hit a new closing record. The S&P 500 crossed 3,000 points for the first time ever on Wednesday, but finished just short of a fresh high. | | European markets opened in the green after stocks in Asia finished higher. Britain's FTSE 100 and France's CAC 40 rose 0.3% in early trading. Germany's DAX opened flat. | | The Shanghai Composite rose 0.1%. Hong Kong's Hang Seng increased 0.8%, and Japan's Nikkei rose 0.5%. | | US oil futures have surged above $60 a barrel on concerns that Tropical Storm Barry could derail crude production in the Gulf of Mexico. Claims from US officials that five armed Iranian boats had unsuccessfully tried to seize a British oil tanker in the Persian Gulf sent prices even higher, with Brent crude, the international benchmark rising 0.5%. | | Before the Bell newsletter: Key market news. In your inbox. Subscribe now! | | | | | | |
| | | Thursday — US inflation rate; China balance of trade; Delta earnings; Powell testifies in the Senate Friday — US producer prices | | | | | | |
Key Market Stats | Latest | Today's Change | | Oil | $60.77 | +0.34 / +0.56% | | Gold | $1,423.50 | +11.00 / +0.78% | | 10-yr | 2.06% | +0.01 | | Euro | $1.13 | +0.00 / +0.10% | | | |
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