Expectations are high on Wall Street for the Fed to keep cutting interest rates, and a halt in cuts could send stocks tumbling. Critics say stock prices have already shot too high and become too expensive, in part because of the heavy bets on continued cuts in rates.
On Wall Street, Novo Nordisk saw its stock that trades in the United States rise 6.2 per cent after the Danish company said a newly published study showed its once-a-day pill version of Wegovy helped people lose significant weight. It also said that its Ozempic product reduced the risk of heart attack, stroke and death for patients versus another treatment for some people with type 2 diabetes.
Stocks in the cryptocurrency industry also jumped to strong gains, including rises of 9 per cent for Coinbase Global, 11.8 per cent for Bullish and 9.1 per cent for Circle Internet Group. Bitcoin has climbed above $US117,500 following the Fed’s cut to interest rates.
On the losing end of Wall Street, the company behind Olive Garden and other restaurant chains sank 7.6 per cent after it reported a profit for the latest quarter that was below analysts’ expectations. Darden Restaurants also raised its forecast for revenue growth this fiscal year, but not by much more than analysts expected.
Cracker Barrel fell 5.6 per cent after the restaurant chain likewise reported a weaker profit for the latest quarter than analysts expected. It also gave a forecast for revenue in its upcoming fiscal year that fell short of analysts’, as the controversy over its planned logo change continues to play out.
The Walt Disney Co. slipped 0.5 per cent after the entertainment giant announced that its ABC television division had suspended Jimmy Kimmel’s late-night show indefinitely after comments that he made about Charlie Kirk’s killing led a group of ABC-affiliated stations to say they would not air the show.
Earlier in the day, FCC Chairman Brendan Carr called Kimmel’s comments “truly sick” and said his agency has a strong case for holding Kimmel, ABC and Disney accountable for spreading misinformation.
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In stock markets abroad, indexes rose in Europe following a mixed performance in Asia.
London’s FTSE 100 added 0.2 per cent after the Bank of England held its main interest rate steady.
South Korea’s Kospi rallied 1.4 per cent, and Hong Kong’s Hang Seng fell 1.4 per cent for two of the world’s bigger moves.
In the bond market, the yield on the 10-year Treasury rose to 4.10 per cent from 4.06 per cent late Wednesday. It’s a notable move after it had briefly dropped below 4 per cent on Wednesday, weighed down by expectations for continued cuts to interest rates by the Fed.
AP
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