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šŸ“ˆ Microsoft Raising Billions for AI

All eyes on the Fed, Musk to sue FAA, Boeing to cut costs, Cohen no longer trading, Microsoft and Blackrock commit $100B for AI

Author

Evelio Silvera
September 18, 2024

Good morning.

āš” The Fast Five ā†’ All eyes on the Fed, Musk to sue FAA, Boeing to cut costs, Cohen no longer trading, Microsoft and Blackrock commit $100B for AI

And nowā€¦

ā±ļø Your 5-minute briefing for Wednesday, September 18, 2024:

MARKET BRIEF
Before the Open

As of market close 9/17/2024.

Pre-Market

  • Moderna was the top performer on the Nasdaq and among the best in the S&P 500, up 4.1%. The drugmaker said it received Health Canada's approval for its updated Spikevax COVID-19 vaccine targeting the KP.2 sub-lineage of SARS-CoV-2 in individuals aged six months and above.

  • Accenture shares fell 4.8%, the steepest decline in the S&P 500. The company is delaying most staff promotions through June, Bloomberg News reported, citing unnamed sources.

Fear & Greed

*UP 5 pts

Trends

  • U.S. stocks end flat ahead of Fed rate-cut decision

  • S&P 500 ends little changed as early gains fade before Fed decision

  • Bond investors debate recession risks with Fed easing finally at hand

WHAT WEā€™RE WATCHING
Events

  • Today: Fed Chairā€™s Press Briefing, 2:30PM

  • Why You Should Care: It's among the primary methods the Fed uses to communicate with investors regarding monetary policy. It covers in detail the factors that affected the most recent interest rate and other policy decisions, along with commentary about economic conditions such as the future growth outlook and inflation. Most importantly, it provides clues regarding future monetary policy

Earnings Reports

  • Today: General Mills, Steelcase

  • Tomorrow: FedEx, Lennar, Darden, Cracker Barrel

MARKET BRIEF
Headlines

BlackRock and Microsoft are teaming up on one of the largest efforts to date to bankroll the buildout of data warehouses and energy infrastructure behind the boom in artificial intelligence (AI). The companies, along with the United Arab Emiratesā€™ MGX investment vehicle, will seek US$30 billion of private equity capital over time for the strategy, which will then leverage the money to as much as US$100 billion in potential investments.

This weekā€™s gathering of the central bankā€™s Federal Open Market Committee carries an uncommon air of mystery. While markets have made up their collective mind that the Fed is going to lower interest rates, thereā€™s a vigorous debate over how far policymakers will go.

  • Boeingā€™s CFO wants to cut costs but it could be a risky maneuver (link)

  • UAW to hold strike votes at Stellantis (link)

  • Alaska Airlinesā€™ Acquisition of Hawaiian Airlines Cleared (link)

  • Amazon mandates five days a week in office starting next year (link)

  • FanDuel owner Flutter Entertainment strikes $2.6 billion deal to buy Italyā€™s Snaitech (link)

  • What Buybacks and Lower Rates Could Mean for Restaurant Brands (link)

  • Musk says SpaceX will sue FAA for "regulatory overreach" (link)

  • "End Of An Era": Steve Cohen Steps Back From Trading At Point72 Hedge Fund (link)

CRYPTO
Fear & Greed

*UP 12 pts

Headlines

  • Brian Armstrong, ETF Experts Shoot Down 'Paper Bitcoin' Rumors (link)

  • A16z is placing a bet on Solana gaming (link)

  • Jamie Dimon says JPMorgan Chase is 'probably one of the bigger users of blockchain' (link)

  • BlockFiā€™s bankruptcy proceedings ā€˜golden standardā€™ compared to FTX: Lawyers (link)

DAILY SHARE
On the Socials

Not for long for Amazon employeesā€¦ (*Hat-tip to WorkRetireDie)