Second half
Enjoy the last recap of Wall Street Breakfast’s hottest headlines and top stories from 2024. We also want to give a shoutout, and a thank you, to all of our subscribers for your thoughtful feedback, comments, and opening the newsletter in your inbox each morning. Stay tuned for more special editions of WSB next week!
The pivot: The Federal Reserve finally began its new easing cycle, with a jumbo 50-basis-point rate cut geared towards a soft landing and the eyes of the FOMC firmly trained on the labor market. U.S. stock market indices hit fresh records, though later in the year, the central bank pared its rate cut forecasts after taking its benchmark rate down a full percentage point. Return of the Bond Vigilantes?
Better for sellers: Seismic changes hit the real estate world as the National Association of Realtors formally dropped its standard commissions to agents as part of a deal to end antitrust lawsuits. While the changes could save sellers money, they may also force buyers to come up with more to pay for the fees or incentivize agents to focus on higher-priced homes.
Military spending: 75 years after NATO was created to counter threats from the Soviet Union, the group gathered in Washington to mark its second diamond anniversary. The expanded alliance welcomed Finland and Sweden into the fold this year, and now consists of 32 countries covering much of Europe, as well as Turkey, Canada, and the U.S. Economic alliances like BRICS also took on increased importance.
Flip the switch: Showing just how interconnected our modern world is, a major tech outage across the globe impacted everything from airports and health providers to banks and stock exchanges. There was some initial confusion over the origin of the “blue screen of death,” but CrowdStrike (CRWD) admitted guilt in the ensuing hours, tracing the issue to “a defect found in a single content update for Windows hosts.”
Goodbye, DEI? Companies from Harley-Davidson (HOG) to Walmart (WMT) stepped away from diversity, equity and inclusion initiatives amid growing industry pressure. The backlash was kickstarted by political commentator Robby Starbuck, who declared during the campaigns, “I don’t ask companies to take on my political views. I am simply advocating for corporate neutrality and believe that is the future.”
New ticket: Following overwhelming pressure from senior Democrats, President Biden abandoned his re-election bid after a disastrous debate performance and endorsed VP Kamala Harris as the party’s new presidential nominee. It only took her days to cement the support of all major Democrats, including former President Barack Obama and Michelle Obama, as well as party leaders in Congress.
Historic comeback: The changes didn’t provide any last-minute help, with Donald Trump winning the November election to become the 47th President of the United States. Trade comes first in Trump’s economic playbook, which will introduce a series of broader and higher tariffs to spur a wave of reshoring and economic growth. Don’t forget the “Trump Trade,” which turned into the “Trump Bump,” as well as two assassination attempts.
Auto consolidation: Rivian (RIVN) and Volkswagen (OTCPK:VWAGY) are going at it together. Honda (HMC) and Nissan (OTCPK:NSANY) are going at it together. It’s all about the new era for automobiles, with margins, electrification, and software-defined vehicles at the forefront of any strategic success. There were also plenty of headlines on self-driving cars and GM dropping out of the robotaxi race.
More security: UnitedHealthcare (UNH) CEO Brian Thompson was shot and killed outside a midtown Manhattan hotel where he was scheduled to speak at the company’s annual investor conference. The words “deny,” “defend,” and “depose,” were found on the shell casings used in the murder, while suspect Luigi Mangione was later arrested at a McDonald’s (MCD) in Pennsylvania. UNH has slumped 16% since the shooting.
Round-the-clock: Potentially shaking up market dynamics, the SEC approved the first U.S. stock exchange that would operate during most hours of every weekday. The schedule of the 24X National Exchange, started by hedge-fund billionaire Steve Cohen, could challenge established rivals like the NYSE (ICE), which is considering a similar proposal on its Arca electronic platform.
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