- The S&P 500 closed above another threshold.
- Thousands of Americans have lost access to their bank accounts.
- Skydance and National Amusements are nearing a merger deal for Paramount.
Here are five important things investors should know before starting the trading day.
The records for the S&P 500 and Nasdaq Composite seem destined to be broken. During Tuesday’s trading session, the market index rose 0.62% to close at 5,509.01. This is the first time that the S&P 500 Index has closed above 5,500. The S&P’s performance was bolstered by a 10% surge in Tesla shares following better-than-expected deliveries in the second quarter. Like the S&P, the Nasdaq Composite Index also rose 0.84% ​​to close at a new record, while the Dow Jones Industrial Average rose 0.41% to close at 39,331.85. Follow our live market updates.
Guirong Hao | Istock | Getty Images
Americans are feeling the pain of fintech’s empty promises. Since fintech intermediary Synapse collapsed, more than 100,000 Americans with $265 million in deposits have lost access to their accounts. About 85,000 of those customers were with banking app Yotta, said Adam Morris, co-founder of the startup. This comes after Synapse declared bankruptcy in April after several key partners left the company. Then, on May 11, Synapse cut off access to its systems that allowed lenders like Evolve Bank & Trust to process transactions and account information, the filing said. The debacle has prompted regulators to move to crack down on banks that provide services to fintechs.
Paramount Global Headquarters in Times Square on August 8, 2023 in New York City.
Michael M. Santiago | Getty Images
The deal is back on. Skydance and National Amusements have reached a tentative agreement to merge with Paramount, just weeks after a deal between the two companies fell through, according to two people familiar with the matter. The deal was referred by controlling shareholder National Amusements to a special committee of Paramount, which is currently reviewing and voting on it, according to the people. Shari Redstone, who blocked the original deal in June, will receive a reduced consideration of $1.75 billion, but other financial terms of the deal will remain unchanged, with Skydance acquiring roughly half of Paramount’s controlling stake at $15 a share for $4.5 billion and adding $1.5 billion to its balance sheet.
Federal Reserve Chairman Jerome Powell speaks during a press conference after the Fed announced it would keep interest rates steady, in Washington, U.S., June 12, 2024.
Evelyn Hochstein | Reuters
Inflation is not yet at the point where interest rates should be cut. Federal Reserve Chairman Jerome Powell said Tuesday he is pleased with inflation progress over the past year but is not yet confident enough to cut rates. Speaking at a forum that also included European Central Bank President Christine Lagarde and Brazilian Central Bank Governor Roberto Campos Neto, Powell said the last inflation rate and even the one before that “suggest that we are returning to a deflationary path.” His comments came after the personal consumption expenditures price index rose 2.6% over the 12 months in May, compared with about 4% a year ago.
The Lilly Biotechnology Center will open in San Diego, California, USA on March 1, 2023.
Mike Blake | Reuters
Eli Lilly’s Alzheimer’s drug has been given official approval. On Tuesday, the Food and Drug Administration approved Donanema. The company said the drug will be sold under the brand name Xanla for adults with early-stage Alzheimer’s. The number of Americans with the disease is expected to grow from about 7 million to about 13 million by 2050. Last month, an FDA advisory committee recommended full approval of the drug, arguing that its benefits outweigh its risks. The FDA rejected the approval last year, citing a lack of data.
— CNBC’s Pia Singh, Sara Ming, Laura Kolodny, Hugh Song, Lillian Rizzo, Alex Sherman, Rohan Goswami, Jeff Cox and Annika Kim Constantino contributed to this report.
— Track broad market trends like a pro CNBC Pro.
