Good morning investors! The market fell today as global tech stocks struggle and South Korean market fell over 10%.
Today we cover:
Gold to fall more?
Big earnings
Are stocks not for you?
📊 Economy and News
Gold and Silver Tumble as Rate-Hike Fears Erase Safe-Haven Appeal
Gold and silver prices dropped sharply on Tuesday amid a broader market sell-off triggered by renewed fears of higher interest rates.
Gold futures fell 1.3% to settle at $4,149.40 per ounce, while silver plunged more than 5% to $62.07 per ounce.
Since the outbreak of the U.S.-Iran war on February 28, gold’s status as a reliable safe-haven asset has been under pressure. An unexpectedly hawkish Federal Reserve meeting last week, led by Chair Kevin Warsh, further fueled expectations for interest rate hikes by year-end. Higher rates typically weigh on non-yielding assets like gold.
Wall Street analysts are also turning more cautious. Several banks have downgraded their gold price forecasts following the Fed meeting. Bank of America now sees its previous $6,000 target as unlikely due to persistent inflation, while Deutsche Bank lowered its Q3 target to $4,300 per ounce and warned gold could fall as low as $3,800 if the Fed delivers multiple hikes.
Global hits:
Argentina’s economy grows 0.7% in first quarter.
Dollar climbs to 13-month high on Fed hike bets, safe-haven bid.
Latin America FDI rises 1.7% in 2025 on mining, tech bets.
Check this: Barclays, Stifel lift S&P 500 target to 7,800 on strong earnings outlook.
Reminder: House expected to pass affordable housing bill, send it to Trump’s desk. Also, Oracle reduced its workforce by 13% over the past 12 months and cited AI deployment in an annual filing. The company currently employs 141,000 full-time workers, down from 162,000 the previous year.
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📈 Stocks
S&P 500 7,365.46 (-1.44%)
DJIA 51,666.84 (-0.089%)
NASDAQ 25,587.04 (-2.21%)
BRENT CRUDE 77.08 (-1.37%)
* Prices as of Jun 24th, 12:20 AM UTC
Big Names Report
Cerebras said revenue almost doubled in the AI chipmaker’s first earnings report since its initial public offering last month. The stock fell 8% in extended trading as the company forecast a drop in its gross margin. Cerebras said its core gross margin, or the profit left after accounting for the cost of goods sold, will shrink to between 36% and 38% in the second quarter from 46.5% in the first.
FedEx reported earnings that beat Wall Street expectations on the top and bottom lines. The earnings report marked the last quarter that includes the company’s freight business, which spun off into a separate publicly traded company called FedEx Freight on June 1. The company said FedEx Freight paid a cash dividend of roughly $4.1 billion to FedEx Corporation in connection with the spinoff. Shares dipped roughly 6% in extended trading. The company also said it will now change its fiscal year end from May 31 to Dec. 31, effective earlier this month. In addition, it saw U.S. pricing rise 10%.
SpaceX: SpaceX shares whipsawed on Tuesday, closing higher after dipping below its debut price. The rocket company is down about 12% this week and roughly 28% from its June 16 peak. Yet, bearish bets remain in check. Interestingly, the company has raised $25 billion in debt sale less than two weeks after IPO.
Surprising: Alphabet will replace Verizon in the Dow Jones Industrial Average. In other news, Meta is building a prediction markets app while continuing to expand the wearables market – now with new smart glasses starting at $299.
💵 Personal Finance
Who Should Not Invest in Stocks
Investing in stocks can be an excellent way to build long-term wealth, but it is not suitable for everyone. Certain individuals should avoid the stock market entirely or delay entry until their financial situation improves.
First, people with high-interest debt, such as credit cards or payday loans, should not invest in stocks. The average stock market return of 7-10% annually cannot compete with 20%+ interest rates on debt. Paying off high-cost liabilities first is almost always the smarter move.
Second, anyone without an emergency fund covering 3-6 months of essential expenses should stay away. Stocks are volatile. If you lose your job or face a medical emergency and are forced to sell investments at a loss, the damage can be severe.
Third, individuals who need the money within the next 3-5 years — for a house down payment, tuition, or a major purchase — should avoid stocks. Short-term market crashes can wipe out gains and leave you short of cash when you need it most.
Risk-averse people who panic during market downturns and those who lack basic financial knowledge are also poor candidates. Emotional trading often leads to buying high and selling low, destroying returns. Beginners should start with safer options like high-yield savings accounts or index funds only after educating themselves.
Finally, some retirees or those living on fixed incomes with limited recovery time may want to limit stock exposure. While complete avoidance isn’t always necessary, heavy stock allocation can be dangerous when you can no longer afford losses.
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Stocks are for those with stable finances.
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👩🏽⚖️ Legal Stuff
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