Things to know before the stock market opens

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Amara

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Jul 18, 2024
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Rate Rally: U.S. stock markets have been largely steady, with major indices rising on expectations of a Federal Reserve interest rate cut in September. Investors are closely watching Fed Chair Jerome Powell's upcoming comments at the Jackson Hole symposium.

September Rate Cut Expected: Minutes from the Fed's July meeting suggest a likely interest rate cut if economic conditions remain stable. The Labor Department reported that 818,000 fewer jobs were created in the past year than previously thought, reinforcing expectations for a rate cut.

Ford’s EV Scale-Back: Ford announced it will delay the production of an electric truck and scrap plans for a three-row electric SUV, focusing instead on hybrid models and commercial EVs. This decision will result in a $400 million noncash charge.

Paramount’s Merger Drama: Paramount Global extended the period to receive competing offers to its merger with Skydance by 15 days. This extension follows a revised $6 billion bid from media executive Edgar Bronfman Jr.

Peloton's Turnaround: Peloton's shares surged after it reported reduced losses and a slight increase in sales for the first time since 2021. The company plans to prioritize profitability over growth in the coming year, aligning with changes in consumer fitness trends.