![](https://vistapglobal.com/wp-content/uploads/2024/07/x6nusltjfkbown2gphks-1.png)
Tech Giants’ Earnings Fumble
In a plot twist worthy of a Silicon Valley sitcom, tech giants Alphabet and Tesla stumbled on the earnings stage, leaving investors scratching their heads and questioning the ROI of their AI extravaganza. The dynamic duo’s unimpressive financial performance sent shockwaves through Wall Street, causing investors to wonder if Big Tech’s AI-fueled valuations were more hot air than solid circuitry. This comedic turn of events left the tech sector looking less like the Avengers and more like a bunch of clumsy robots tripping over their own algorithms. Meanwhile, Ford decided to join the party of disappointment, with its shares taking a nosedive faster than a skydiver without a parachute, tumbling over 13% in pre-market trading after missing its quarterly profit target.
Global Markets’ Dramatic Reaction
Surprising US GDP Growth
Federal Reserve’s Rate Cut Game
Amid market turbulence and surprising economic growth, traders are betting on the Federal Reserve to play “How Low Can You Go?” with interest rates. The financial crystal ball gazers are now pricing in more aggressive cuts:
* A reduction of about 30 basis points by September
* Almost 70 basis points over 2024
* Increased odds for an earlier-than-expected rate cut in July
These predictions suggest the Fed might be preparing to limbo under its previous rate projections, potentially in response to the mixed signals from tech earnings and robust GDP growth. The upcoming Personal Consumption Expenditure Price Index update will provide another piece to this economic puzzle, potentially influencing the Fed’s rate cut choreography.
Citations
- https://www.cnbc.com/2024/07/25/us-gdp-q2-2024.html
- https://www.bea.gov/data/gdp/gross-domestic-product