Daily Brief - 9 July 2024

US stocks rise as Powell prepares for Congress; Europe feels the strain

  US stocks are climbing to new highs as everyone waits to hear from Jerome Powell, the Fed Chair, who will speak to Congress about interest rates.

He's under pressure to lower rates, but also faces criticism for wanting banks to keep more money in reserve. In Europe, stocks fell, with worries about government spending in France and BP expecting a $2 billion hit.

Asian markets did well, led by Japan, and the price of oil has steadied after a recent drop. Powell's words could make a big difference to what happens next with money matters in the US.

US public sector hiring picks up as private jobs slow down

  In the US, local governments and states are hiring more people, adding about 65,000 jobs last month. This increase has pushed their total employment to over 20.4 million, which is higher than before the pandemic.

While the private sector is hiring fewer people now, public sector jobs are filling the gap. Despite this growth, experts like Elise Gould from the Economic Policy Institute suggest that the current number of jobs might still not meet the increasing needs of governments.

Looking ahead, the flow of pandemic-era federal aid that helped boost hiring is expected to reduce, which might slow down these gains.

Nvidia takes the lead in single-stock ETFs with a stunning rally

Nvidia has surged ahead of Tesla in the world of single-stock ETFs, now holding over half of all assets in this area, valued at more than $6 billion.

This rise is fueled by excitement around artificial intelligence, which has significantly boosted Nvidia's stock performance. In contrast, Tesla-centric funds have seen a decrease in interest, now representing only a fifth of the sector's assets.

Single-stock ETFs, offering amplified returns on specific companies, were introduced just two years ago and have quickly become popular, especially among day traders. Amid this trend, Nvidia’s ETFs have attracted massive investments, underscoring the chip maker's pivotal role in the current investment climate.