Here are the top news, trends, and analysis investors need to start their trading day:
1. Wall Street looks stable after the Nasdaq hit record high
Traders on the floor of the New York Stock Exchange, June 18, 2021.
Source: NYSE
US stock futures were flat on Wednesday, a day after the Nasdaq made up previous losses as Bitcoin made an intraday comeback. The tech-heavy index climbed to a record high. The S&P 500 closed just before last week’s record close. Microsoft was the second company to top a market value of $ 2 trillion, reaching that mark during Tuesday’s session. Apple, currently worth $ 2.2 trillion, was the first. Like the S&P 500 and the Nasdaq, the Dow posted its second positive price in a row on Tuesday. But after last week’s slump, the average of the 30 stocks still needs to gain nearly 2.5% to beat its latest record high from early May.
2. Fed Powell believes 1970s-style inflation in the US is very unlikely
Federal Reserve Chairman Jerome Powell during a House Financial Services Committee hearing in Washington on December 2, 2020.
Swimming pool | Getty Images News | Getty Images
Jerome Powell, the chairman of the US Federal Reserve, has curbed bond yields with the recent calm on inflation. The 10-year government bond yield barely changed early Wednesday, trading around 1.47%. But even if U.S. oil prices rose above $ 73 a barrel in this year’s 52% surge, Powell attributed most of the recent surge in inflation to factors closely related to the economic recovery from the pandemic. The Fed chief told House Select’s subcommittee on the coronavirus crisis Tuesday that the US is unlikely to see a 1970s-style recurrence of hyperinflation, largely because of the central bank’s commitment to price stability.
3. Bitcoin bounces after Tuesday’s wild ride sparked concern
Chris Ratcliffe / Bloomberg via Getty Images
Bitcoin surged 5% and topped $ 34,000 on Wednesday, a day after the world’s largest cryptocurrency by market value fell below $ 29,000 and briefly turned negative for the year. China’s stepped-up crackdown on bitcoin mining and crypto activities contributed to the recent sales. The break below $ 30,000 on Tuesday sparked all kinds of technical warning bells and speculation about whether Bitcoin would stabilize or decline. Bitcoin fought its way back into positive territory during Tuesday’s wild ride. The digital currency has lost nearly 50% early Wednesday from its all-time high of $ 65,000 in late April.
4. House committee to debate big tech laws; Biden reveals anti-crime measures
Tim Cook, Apple Inc.’s Chief Executive Officer, speaks about the new iPhone Pro during an event at the Steve Jobs Theater in Cupertino, California, USA on Tuesday, September 10, 2019. Apple has unveiled the iPhone 11, which will replace the iPhone 11 XR, starting at $ 699. Photographer: David Paul Morris / Bloomberg via Getty Images
David Paul Morris | Bloomberg | Getty Images
The House of Representatives Judiciary Committee on Wednesday will debate six bills aimed at restricting the power of big tech companies like Apple, Amazon, Facebook, and Alphabet’s Google. In a preemptive strike, Apple argued in a 16-page paper posted on its website against the language in some of the bills that could force the iPhone giant to allow software downloads outside of its app store.
United States President Joe Biden speaks during an event in the South Court Auditorium of the White House on June 2, 2021 in Washington, DC.
Alex Wong | Getty Images
President Joe Biden will outline his administration’s measures on Wednesday to stem the recent surge in violent crime and gun violence. Biden will announce stricter enforcement standards for arms dealers who violate federal laws. The president will also encourage state and local governments to use pandemic tools for crime prevention, including hiring police officers.
5. Buffett donates an additional $ 4.1 billion and resigns as a trustee of the Gates Foundation
Warren Buffett, Melinda and Bill Gates discuss philanthropy.
Lacy O’Toole | CNBC
Warren Buffett said Wednesday he would donate an additional $ 4.1 billion worth of Berkshire Hathaway shares to five foundations, marking the halfway point of his 2006 promise to donate almost all of his fortune to charity. Buffett also said in a press release that he will step down as trustee of the Bill & Melinda Gates Foundation as the organization faces a tumultuous time with the divorce of its two founders. “My goals are 100% aligned with the Foundation’s, and my physical involvement is in no way required to achieve those goals,” added Buffett.
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