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WSJ What’s News

What’s News in Markets: JPMorgan’s Warning, Medicare Insurers, Chipmaker Rally

WSJ What’s News

The Wall Street Journal

Daily News, News

4.14.2K Ratings

🗓️ 14 September 2024

⏱️ 4 minutes

🧾️ Download transcript

Summary

What warning did JPMorgan give about rate cuts? And why are health insurers taking a hit after the presidential debate? Plus, how much did a big chipmaker rally support stock indexes this week? Host Jack Pitcher discusses the biggest stock moves of the week and the news that drove them. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

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0:29.4

Hey listeners it's Saturday September 14th. I'm Jack Pitcher for the Wall Street

0:38.5

Journal and this is what's news and markets. Our look at the biggest stock moves of the week and the news that drove them.

0:45.6

Let's get to it. Stocks were on the rebound this week after a bad start to September. The S&P 500 was back within striking distance. Of the record highs that touched earlier this year,

0:55.8

his chipmakers and tech companies rallied hard. But the Bond market is flashing warning signs.

1:02.1

Bond yields have been dropping fast with both short

1:04.8

and long-term yields trading near this year's lows. Yields dropping means that

1:09.6

prices are going up and that means traders are shifting their money into ultra safe

1:13.9

government debt often a sign that investors are nervous. Everyone is looking

1:19.2

ahead to next week's Federal Reserve meeting. The Central Bank is expected to cut rates for the first time since

1:24.5

2020, but Wall Street isn't sure how deep those cuts will be. That, plus uncertainty

1:30.4

about the economy, has been a source of angst for triggers recently, fueling market

1:34.8

volatility.

1:39.3

Those rate cuts are on everyone's mind, including at J.P. Morgan Chase. The bank on Tuesday

1:44.5

sounded a warning on how lower rates could hurt its earnings and investors were

1:48.6

spooked. J.P. Morgan has been telling investors for several quarters that the high income it's been generating from interest earned isn't sustainable if the Fed begins to cut.

1:58.0

The bank now says the analyst estimates for how much interest income will fall next year or too low.

...

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