Category: Markets

More rich countries worried about the dollar want to buy gold

Central banks appear to be more enthusiastic about gold than the US dollar. GeorgePeters/Getty Images Central banks from advanced economies plan to buy more gold, according to a World Gold Council survey. They’re loading up on gold to hedge risks including inflation and economic shocks. Meanwhile, central banks expect the US dollar’s share in global reserves to fall in the next five years. Emerging economies,…

Trump’s plan to tax the entire world will result in the type of global trade war not seen since the...

Former President Donald Trump. Scott Olson/Getty Images Trump’s plans for a universal tariff on all US imports could set off a global trade war, a Peterson Institute fellow said. Such a conflict erupted the last time the US applied blanket protectionism in the 1930s. Others have warned that a trade war with China could be coming regardless, no matter who is president. Donald Trump says…

Big banks are more at risk of a commercial real estate meltdown than people think, new study says

Commercial real estate properties could be in for another 10% decline this year, Capital Economics estimated. Gary Hershorn/Getty Images Big lenders are more exposed to commercial real estate than it might seem at first glance, a study says. In addition to lending to property owners, big firms also offer indirect lending to REITs, raising their exposure by about 40%. Wall Street has been worried about…

China wants to turn the yuan into a global currency out of fear of sanctions, not domination

China is playing defense more than offense in its promotion of the the Chinese yuan internationally. Sheldon Cooper/SOPA Images/LightRocket/Getty Images China is pushing yuan use globally to guard against potential Western sanctions. Beijing aims to reduce risks from sanctions in geopolitical tensions, like over Taiwan. But China’s trade partners face challenges in using more yuan. China is on a drive to expand the use of…

2 Yale researchers are pulling back the curtain on Russia’s sanctions-stricken economy — and it’s landed them on a list...

Jeffery Sonnenfeld and Steven Tian have landed themselves on a list of sanctioned individuals for their work shining a light on Russia’s economic situation. Mikhail Klimentyev/Sputnik AFP Jeffrey Sonnenfeld and Steven Tian, two Yale researchers, have issued dire predictions for Russia’s economy.  Their work has landed them on a list of sanctioned individuals in Russia.  In their view, the country’s economy is in shambles, and…

Nvidia CEO Jensen Huang says ‘demand is just so strong’ for its hot AI chips

Nvidia CEO and cofounder Jensen Huang. Noah Berger/Getty Images Nvidia announced it is shipping its new Blackwell AI chip next quarter amid high demand. CEO Jensen Huang highlighted the strong interest in both Blackwell and current Hopper chips. Nvidia’s shares surged, driven by a 262% revenue increase and a 10-for-1 stock split announcement. Nvidia just announced it’s shipping its hot new AI chip, Blackwell, this…

Jamie Dimon might finally be ready to call it quits

AP Photo/Alex Brandon; iStock; Rebecca Zisser/BI This post originally appeared in the Insider Today newsletter. You can sign up for Business Insider’s daily newsletter here. Hello! If you had a billion dollars, you’d probably buy a few silly things. (For me, it’s a ski mountain.) But what about a boat designed specifically for Navy SEAL missions and a Black Hawk helicopter? This billionaire defense entrepreneur…

The world’s stock markets are so hot that even China’s on a rally. Analysts say it’s not over yet.

US stock market indices are at record levels. Spencer Platt/Getty Images Global stock markets are hitting record highs, driven by economic optimism and potential rate cuts. China’s stock markets are rallying on attractive valuations and government stimulus measures. Investors are shifting funds to China as they seek profits from rising valuations in other markets. The world’s major stock markets are on a tear as indexes…

Meet the doomsayers waiting for the economy to crash

coffeekai/Getty Images Economic doomers are getting louder as they say the economy is headed for a collapse.  Membership on the r/economiccollapse subreddit rose by 80% from the end of 2021 to the end of 2023. There’s a divergence between what experts say is a healthy economy and the experience of many individuals.  Daniel, a Reddit user based in Washington, DC, has been browsing the subreddit…

These 3 metro regions still haven’t recovered from the pandemic recession as Wall Street debates when the next downturn will...

Alexander Spatari/Getty Images More than a quarter of US metros are still recovering from COVID-era job losses, the Federal Reserve Bank of New York reported. These are chiefly located in Rust Belt states, the South, and Northeast. Today’s job market amplifies fears of another recession, which some experts say could hit as soon as this year. As analysts clash over when the next recession will…

How Nvidia is dominating an AI-obsessed earnings season without even reporting yet

AndreyKrav/iStock, Michael M. Santiago/Getty, Tyler Le/BI Nvidia is dominating earnings season, and it hasn’t even reported results yet. Other mega-cap tech giants have been mentioning on earnings calls that they’re boosting investment in AI infrastructure. Nvidia offers the popular H100 GPU chip that many companies use, and was specifically name-checked in some instances. Nvidia is dominating first-quarter earnings season, and it hasn’t even reported its…

Inflation is scrambling Americans’ perceptions of middle class life

Michael Raines Many Americans have come to feel that a middle-class lifestyle is out of reach. Blame inflation for bringing down the mood and making the economy seem much worse than it is.  Money experts say people feeling downbeat can create a financial plan to alleviate stress.  Vincent, a 29-year-old medical sales rep, makes $130,000 a year. It was a dream when he was younger…

High mortgage rates didn’t put a lid on home prices, but soaring insurance costs might, real estate experts say

Photo by Joe Raedle/Getty Images The housing market has been brutal in recent years as prices keep rising.  While high mortgage rates didn’t bring prices down, steep insurance costs could put a lid on further appreciation.  “You can see in the course of even a year or two, prices begin to respond because people are very sensitive to this.” When mortgage rates started to spike…

The US economy may be barrelling towards stagflation, an outcome worse than recession

US Federal Reserve Board Chairman Jerome Powell. Anna Moneymaker/Getty Images The first-quarter GDP report surprised investors with disappointing growth, while consumer prices kept rising. The provides the backdrop for stagflation, which can’t be combated with rate cuts. The 1970s offer a warning of what could happen if inflation spirals out of control. The latest GDP and inflation readings were what investors were least eager to…

Elon Musk gave Tesla investors the one thing they’ve been demanding — and it worked brilliantly

Tesla is moving up production for cheaper cars, Elon Musk said on Tuesday. Christian Marquardt via Getty Images Elon Musk said Tesla will get cheaper electric vehicles out sooner. The move came after Tesla lowered prices due to falling sales and increasing competition. Tesla’s first quarter was marked by fewer deliveries, layoffs, and a stock rout. Elon Musk dangled a long-awaited prize — cheaper Tesla…

The yield curve has been inverted for 18 months without a downturn – but the famed indicator isn’t wrong, and...

Yichiro Chino/Getty Images The bond market’s famous recession gauge has been flashing for 18 months. A downturn could be delayed for months after the yield curve first inverts, Paul Dietrich said. He predicted a recession would hit the economy “sometime soon.” A famously accurate recession indicator has been flashing for 18 months without an economic slowdown materializing — but the inverted yield curve is still…

People in China are so spooked about the economy that even the weak yuan isn’t stopping them from buying more...

Gold prices have hit record highs on the back of strong demand from China’s consumers and central bank. Ni Lifang/VCG/Getty Images Gold prices have hit record highs, thanks to global uncertainties and expectations of central bank rate cuts. China’s consumers and its central bank are snapping up gold, even as a falling yuan makes the metal pricier. Other central banks around the world are also…

Why the Fed needs to cut interest rates to lower inflation, according to a JPMorgan strategist

US Federal Reserve Chair Jerome Powell attends a press conference in Washington, DC, on March 22, 2023. Liu Jie/Xinhua via Getty Images If the Federal Reserve wants to lower inflation, they need to cut interest rates, according to JPMorgan. JPMorgan strategist Jack Manley said lower interest rates would help lower shelter costs. “You’re not going to see meaningful downward pressure on shelter costs until the…

Inflation came in hotter than expected in March

Mostafa Bassim/Anadolu via Getty Images Inflation as measured by the Consumer Price Index ticked up again in March. The CPI rose 3.5% from March 2023 to this past March, after rising 3.2% year over year in February. March’s year-over-year increase was forecasted to be a higher rate than February’s rate. US inflation is hot again. A Wednesday news release from the Bureau of Labor Statistics…

General Electric’s 132-year journey from American manufacturing icon to fallen giant

SEBASTIEN BOZON/AFP via Getty Images General Electric was an icon of American innovation and manufacturing for most of its history. The company reached its peak in 2000, but had a rocky journey entering the 21st century. In April, GE finished splitting its remaining divisions into three stand-alone, publicly traded companies. Over the course of the 20th century, General Electric grew into a powerhouse — literally…

Why the next US recession may be pushed back to 2025, according to JPMorgan

Tesla factory workers got a pay bump in January. Getty/David Butow Fears of an economic recession may have to be pushed back to 2025, according to JPMorgan. US factory activity expanded in March for the first time since September 2022.  JPMorgan said the rebound in manufacturing activity bodes well for continued economic resilience. The long-awaited recession that many economists and investors have been fearing may…

Russia says its economy is off to a — mostly — roaring 2024

Russian President Vladimir Putin. Kirill Kudryavtsev/AFP/Getty Images The Central Bank of Russia is maintaining a 16% interest rate due to a thriving economy. The economic growth is due to an increase in consumer activity and wage gains. But there are potential risks ahead, including the potential impacts of sanctions on foreign trade. Russia’s economy is running so hot the Central Bank of Russia is holding…

How many users does Donald Trump’s social media company have? He won’t say.

Donald Trump’s social media company won’t say how many users it has. That should concern investors. Michael M. Santiago/Getty, spxChrome/Getty, Tyler Le/BI Trump’s social media company released new financials, which aren’t good. But those are just the numbers he’s willing to release. He won’t share how many users he has, or how many have signed up. That’s a giant red flag. The stock price for…

The market sees a less-than-50% chance of a June rate cut after hot factory data

Federal Reserve Board Chairman Jerome Powell speaks during a news conference after a Federal Open Market Committee meeting on November 01, 2023 at the Federal Reserve in Washington, DC. The Federal Reserve left interest rates unchanged at a range of 5.25 percent to 5.50 percent, keeping rates the highest they have been in 23 years. Kevin Dietsch/Getty Images Bond-market expectations of a June rate cut…

If you want a preview of China’s economic collapse, just look at Japan

Japan’s recent success stems from a decadeslong effort to reboot the economy. That will be nearly impossible for Beijing to re-create. Tyler Le/BI Japan’s long-comatose economy is finally showing proof of life. After a catastrophic real-estate implosion in the early 1990s, the country’s economy spent the next three decades shrinking. Households and businesses had to spend their money paying off debt, which prevented them from…

The housing market is thawing as an increasing number of ‘mortgage lock’ homes go up for sale, JPMorgan says

Fitch Ratings found that homes in 91% of US metro areas were overvalued in the third quarter. Richard Newstead/Getty Images The housing market looks to be gradually approaching a recovery. A growing number of mortgage-locked homes are going up for sale, JPMorgan said. Existing home sales, meanwhile, jumped nearly 10% in February. The housing market looks like it’s starting to thaw, thanks to a growing…

A lot of what you’re hearing about AI is pure hype

iStock; BI Maybe AI will kill us all. Maybe it will steal our jobs. Maybe it will be awesome and improve our lives beyond our imaginations. Or, perhaps, this is all hype, and it’s doomed to go the way of the metaverse. Amid all the unknowns that surround artificial intelligence, one thing is true: Almost everyone is a little bit lying about it at the…

3 things America can do to solve its retirement crisis, according to BlackRock chief Larry Fink

Many Americans nearing retirement age have nothing set aside to pay for their lives after they stop working. 10’000 Hours/Getty Images America has a retirement crisis on its hands. But there are things the US can do to help people better prepare for post-work life, Larry Fink said. The BlackRock chief outlined three things to help alleviate financial burden on retirees. America has a real…

Investing legend Jeremy Grantham sounds the alarm on a stocks bubble, blasts bitcoin, and says the dollar’s still king

Jeremy Grantham. Morningstar/YouTube Stocks are in a bubble that will almost certainly burst, Jeremy Grantham said. The GMO cofounder said bull markets almost never start in boom times, and end badly when they do. Grantham shrugged off de-dollarization fears and blasted bitcoin as speculative and inferior. Stocks are in a bubble that’s bound to burst, there’s no imminent risk to dollar dominance, and bitcoin is…