CNBC Business News Update - Market Close: Stocks Higher, S&P 500 Index and Nasdaq Close At Records, Fed Chair Highlights Risks of Keeping Rates High for Too Long 7/9/24

Episode Date: July 9, 2024

From Wall Street to Main Street, the latest on the markets and what it means for your money. Updated regularly on weekdays, featuring CNBC expert analysis and sound from top business newsmakers. Anchored and reported by CNBC's Jessica Ettinger.

I'm Jessica Ettinger, CNBC. Wall Street opens Wednesday morning after another record-setting day. On Tuesday, markets were mixed, but the S&P 500 index and the NASDAQ each closed at new record highs. Investors liked that Fed Chair Jay Powell highlighted the risk of leaving interest rates too high for too long. They're hoping for rate cuts. The Dow was in the red, down 52 points on Tuesday. The S&P 500 index up four points. The NASDAQ was up 25 points.

Companies whose shares hit fresh all-time highs Tuesday include Royal Caribbean, Goldman Sachs, Google parent Alphabet, Eli Lilly, Walmart, Costco, and T.J. Maxx & Marshall's parent T.J. X Companies. Some investors say a pullback would be normal anytime. We've got a 40-year high in these top 10 mega cap stocks in terms of their concentration, the S&P 500, and for sure they are ripe for correction. That would be a viable dip. To 13th's Greg Sarian on CNBC. Fed Chair Jay Powell told the Senate Banking Committee recent monthly readings have shown modest progress on lowering inflation and the job market is cooling. The latest data do show that we've had considerable cooling in the labor market

and we do we're very much aware that we have two-sided risks now and we're determined to balance those as best we can. We want to see more good inflation data, and we also want to continue to see a strong labor market. Powell speaks to a House committee on Wednesday in the regular Capitol Hill visits. E-commerce site Etsy has lost 80 percent of its value over the past three years. It's trying a turnaround. The platform offered original crafts and goods made by real people, but was quickly flooded with mass-produced merchandise, often made in China, as resellers gamed the website to crowd out handcrafted items. More Americans are starting to list their homes

for sale, finally ready to give up their 3 and 4 percent once-in-a-lifetime mortgage rates. We are seeing more inventory of existing home beginning to rise. And as we get more inventory, I believe home prices will stop accelerating. I think there will be slight growth, but not the strong growth. And we certainly need more stabilizing home prices. National Association of Realtors Chief Economist Lawrence Yoon on CNBC, the average mortgage rate in the U.S. since Freddie Mac began keeping track in 1971 is about 7.5%. Today's average rate on a 30-year fixed rate mortgage is 7% lower, according to Mortgage News Daily. The first Ariane 6 rocket has launched as Europe rejoins a market dominated today by Elon Musk's SpaceX. On Wednesday's Watch List, day two of Fed Chair Jay Powell's testimony on Capitol Hill.

We find out how many people applied for mortgages last week. We get the latest on oil inventories, an indicator on where prices might go for gas. Samsung holds an unpacked event to introduce new devices. Jessica Ettinger, CNBC. When you're at your very top speed, it feels like you can run forever. And then there's this one moment where everybody else starts to die. And you're like, I'm not about to die. I'm about to get faster. The Olympics from Paris starts July 26th on NBC and Peacock.