Top News in Finance for July 3, 2023

KEY POINTS

Dive into this week’s key financial happenings with our succinct, easy-to-understand summaries of the most crucial economic events. Designed to keep you up-to-date, our roundup empowers you to navigate the week ahead and seize unfolding opportunities

• Second-Half Stock Rally – A promising start to the second half of the year for equities, fuelled by high expectations for AI.
• Yellen’s China Visit – Treasury Secretary Janet Yellen’s visit to China to engage in crucial economic discussions.
• Tesla’s Leap – Tesla registers a surge in Q2 vehicle deliveries, surpassing Wall Street’s expectations.
• Airline Woes – Flight delays plague the airline industry, especially United, during the July 4 travel period.
• Supreme Court Decisions – A series of consequential Supreme Court verdicts set to impact businesses and citizens alike.

Second-Half Stock Rally

The stock market embarks on the second half of the year with optimistic indicators. The tech-laden Nasdaq enjoyed a significant 31.7% increase in the first half, largely thanks to the promise of artificial intelligence. However, despite the S&P 500 climbing 15.9%, the Dow Jones Industrial Average lagged behind with a 3.8% gain. As we step into the latter half, market-watchers are eagerly anticipating the June jobs data set for release on Friday.

Yellen’s China Visit

U.S. Treasury Secretary Janet Yellen will engage in discussions with high-ranking officials in Beijing amidst the ongoing U.S.-China rivalry. There is talk of imposing restrictions on AI chip exports from China, a move that could potentially intensify the economic tension between the two nations. Yellen’s visit aims to facilitate direct communication over areas of concern and collaboration on global challenges.

Tesla’s Leap

Tesla witnessed an 83% year-on-year increase in vehicle deliveries for the second quarter, handing over 466,140 vehicles during this period. This surge, which surpassed Wall Street’s predictions, is a testament to Tesla’s push to enhance manufacturing capacity and its incentives to boost U.S. sales.

Airline Woes

Unprecedented flight delays have plagued the airline industry over the busy July 4 holiday period, with more than 42,000 flights running late and over 7,900 cancellations. United Airlines bore the brunt of the disruption, leading to a compensatory offer of 30,000 frequent flyer miles to the most affected passengers.

Supreme Court Decisions

Several landmark Supreme Court decisions, including rejecting affirmative action in college admissions and ruling in favor of a web designer who declined same-sex wedding commissions, are set to leave lasting effects on Americans. Notably, the court also rejected President Joe Biden’s plan to forgive federal student loans, a decision that may strain budgets in the face of persistent inflation.