Traders work on the floor of the New York Stock Exchange on April 26, 2023 in New York City.
Michael M. Santiago | Getty Images
This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
Inching to records
The S&P 500 and the Nasdaq Composite inched their way to intraday and record closes as Federal Reserve Chair Jerome Powell warned of the dangers of keeping interest rates high. Nvidia rose 2.48% after KeyBanc raised its price target for the AI chipmaker. Apple climbed to a record close for the sixth consecutive day. The Dow Jones Industrial Average lost 52 points. The yield on the 10-year Treasury note rose even as Powell said progress had been made on inflation. Oil prices fell for the third straight day.
Growth in jeopardy
Powell warned that keeping interest rates high for too long could harm economic growth. Despite recent cooling, he noted that the economy and labor market remain strong. Powell highlighted progress in reducing inflation towards the central bank’s 2% target. “At the same time, in light of the progress made both in lowering inflation and in cooling the labor market over the past two years, elevated inflation is not the only risk we face,” Powell said in prepared remarks. “Reducing policy restraint too late or too little could unduly weaken economic activity and employment.”
Ukraine aid
President Joe Biden announced new commitments to enhance Ukraine‘s air defense against Russia during a speech commemorating NATO’s 75th anniversary. “Putin wants nothing less — nothing less — than Ukraine’s total subjugation, to end Ukraine’s democracy,” Biden said. “We know Putin won’t stop at Ukraine. But make no mistake: Ukraine can and will stop Putin, especially with our full collective support.” The aid includes new Patriot missile system components from the U.S., Germany, Romania, the Netherlands and others, with Italy donating an additional SAMP-T missile system. More air defense supplies will be distributed in the coming months.
Boeing slides
Shares of Boeing slid 1.4% after the aircraft maker delivered 44 commercial jets in June, its highest monthly total this year but a 27% annual drop amid legal and production issues. Despite supply chain snags and increased regulatory scrutiny following a 737 Max 9 incident, Boeing aims to expand production by year-end. The company agreed to plead guilty to criminal fraud over two 737 Max crashes, risking government contracts.
Asia mixed, China inflation rises
Markets in the Asia-Pacific region were mixed as investors waded through economic data. Mainland China’s CSI 300 was little changed as consumer price inflation rose less than expected and producer prices fell, raising concerns about deflation in the world’s second-biggest economy. Hong Kong’s Hang Seng index was little changed, while South…