Stock rally stumbles as consumer sentiment slides to 6-month low

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• Fri, May 10, 2024 at 11:20 AM MDT

  Fed’s Michelle Bowman echoes higher for longer mantra

  Federal Reserve Governor Michelle Bowman said Friday she believes interest rates need to stay where they are “for a bit longer.”

  “It is of utmost importance that we maintain credibility in pursuing our fight against inflation by proceeding carefully and deliberately to achieve our 2% goal,” Bowman said while speaking in Arlington, Texas.

  “I think we need to be where we are for a bit longer,” she added. “And if we don’t see progress on inflation, then I think we really need to be thinking about what we need to do from there.”

  The comments echo similar sentiments from other Fed officials in recent weeks that interest rates will likely need to stay where they are until more data shows inflation is safely on the path down towards its 2% inflation target.

  The Federal Reserve kept interest rates unchanged last week but warned inflation is still too high to cut.

  In its statement, members say, “Inflation has eased over the past year but remains elevated. In recent months, there has been a lack of further progress toward the Committee’s 2 percent inflation objective.”

• Fri, May 10, 2024 at 10:35 AM MDT

  Chinese EV stocks turn lower on Biden tariff plan

  US-listed Chinese electric vehicle makers like Nio (NIO), Li Auto (LI), and Xpeng (XPEV) saw shares drop on Friday following news that President Biden is set to unveil tariffs on China strategic industries, including EVs, batteries and solar cells.

  Existing tariffs will be maintained with an announcement expected to come as soon as next week, according to Bloomberg.

  A separate report from the Wall Street Journal said the administration plans to “roughly quadruple” the levy.

  The development comes ahead of a critical election year with China’s economic strength in focus.

  Biden said last month he would impose 25% tariffs on Chinese steel and aluminum. Trump has vowed to hit Beijing with a 60% levy on all Chinese imports if he were to be reelected.

  “Instead of correcting its wrong practices, the United States continued to politicize economic and trade issues,” Lin Jian, a ministry spokesman, said on Friday. “To further increase tariffs is to add insult to injury.”

• Fri, May 10, 2024 at 9:50 AM MDT

  Stock rally falters amid double-digit drop in consumer sentiment

  US stocks lost steam in early afternoon trading on Friday after consumer sentiment hit a six-month low.

  The Dow Jones Industrial Average (^DJI), which is eyeing its eighth straight win, clung to gains of roughly 0.1%, with the benchmark S&P 500 (^GSPC) hovering above the flatline on the heels of closing above 5,200 for the first time in a month. The tech-heavy Nasdaq Composite (^IXIC) declined around 0.2%.

  The latest University of…