📱 Apple hits a new high

and today's a big day

Good morning investors! Today can be a big day as we’ll be keeping an eye on two reports – the pivotal consumer price index reading for May, and the Fed’s policy meeting in the afternoon.

Fun fact: There are over 60 stock exchanges in the world with the two American exchanges (the New York Stock Exchange (NYSE) and the NASDAQ) being the largest two. The third spot is taken by the Japan Exchange Group (JPX), followed by the Shanghai Stock Exchange (SSE), and the Hong Kong Stock Exchange taking the fifth spot.

Today we cover:

  • Today’s big decision.

  • Apple roars back.

  • How much you need to retire – special video.

📊 Economy and News 

What the Fed has in store?

The Federal Reserve began its two-day policy meeting on Tuesday. It will conclude on Wednesday with an interest rate policy decision and a subsequent press conference featuring Fed Chair Jerome Powell. Although some indicators show signs of a slowing economy, investors have grown increasingly concerned this will not be enough to incentivize the U.S. central bank to cut rates in 2024.

Market observers expect that investors have already priced in how the Fed may proceed with interest rates. While the central bank in March last projected three rate cuts over the course of 2024, the latest batch of mixed economic signals have investors paring their expectations down to just two rate cuts, or maybe even one, coming from policymakers. 

In fact, markets were last pricing in roughly two rate cuts this year, with the first coming in September.

Consumer price report: Economists expect CPI to show just a 0.1% increase from April, though that still would equate to an aggregate annual rise of 3.4%. Core CPI is projected to show a 0.3% monthly gain and a 3.5% annual rate.

Global hits:

Also check: General Motors on Tuesday announced a new $6 billion stock repurchase authorization has been approved by its board.

📈 Stocks

S&P 500 5,375.32 (+0.27%)
DJIA 38,747.42 (-0.31%)
NASDAQ 17,343.55 (+0.88%)
BRENT CRUDE 82.20 (-0.03%)
* Prices as of Jun 12th, 12:20 AM UTC

Apple and S&P 500, and Nasdaq close at new highs

Apple shares notched a new record high of around $207 per share after jumping over +7% on Tuesday, besting the previous record from December. This comes a day after the company unveiled its long-awaited push into AI at its annual developer conference.

Analysts believe the new AI features will drive consumers to upgrade their devices since the tools are only available on newer models. It is important to mention that only 5% of the company's installed base consists of iPhone 15 Pro and Pro Max phones at this time.

This helped push the broader market, which started on a slow note and soon recovered.

Sad: Boeing sales tumble as the company gets no orders for the 737 Max for the second straight month.

Exciting: Oracle shares jump on Google and OpenAI deals despite earnings miss. Moreover, computing firm Raspberry Pi pops 38% in rare London market debut.

💵 Personal Finance

How much money do you need to retire?

Short answer: Aim to save at least 1x your salary by 30, 3x by 40, 6x by 50, 8x by 60, and 10x by 67.

This means, you should have at least 10x your salary by the time you retire.

Long answer: The above answer makes it easy but it does not apply to everyone because there are several factors that come into play when deciding how much money to save to retire.

  • Most importantly, when you wish to retire. Delaying your retirement can reduce the amount you need to save. By postponing retirement, your savings have more time to grow, you will spend fewer years in retirement, and your Social Security benefits will increase. A lot of people in the US are now working longer because they do not have enough money to retire; however, if you plan to retire at a certain age then you must know how much to save by that age.

  • Your expected lifestyle. The more extravagant life you want, the more money you’ll need. Some people can live off $100,000 and some will spend that much in a year.

We did a video on how one can retire on $100,000:

This might not be enough for people who wish to live in an expensive country like the US. But, it might work for people who wish to live a simple life in an affordable country like India.

Still not sure? We also did a video on how much you need to retire, watch below:

And don’t forget to give us a subscribe!

💰 Be a Better Investor

"Make sure you have financial intelligence… I don’t care if you have money or you don’t have money… you need to go and study finance no matter what.”

Daymond John

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