The stock market experienced a slight rebound on Thursday, with all major indexes posting gains. However, they are still on track to end the month with losses. Europe’s Stoxx 600 also ended a losing streak by rising 0.36% after reaching a six-month low. Germany’s DAX index rose by 0.7% following news that the country’s inflation for September had increased by 4.3% year over year, the lowest since February 2022. Despite the temporary reprieve, concerns about a potential recession in the US economy persist, as discussed at CNBC’s Delivering Alpha investor summit.
The European Union’s probe into subsidies for electric vehicle makers in China does not only cover Chinese brands, but also includes brands like Tesla and BMW. This investigation highlights the EU’s scrutiny of the EV market, which previously targeted Chinese EV makers. Meanwhile, Elon Musk’s SpaceX has secured its first Pentagon contract for Starshield, a military-specific version of the company’s Starlink satellite internet system. The year-long contract has a maximum value of $70 million and comes after Musk faced accusations of preventing a Ukrainian military operation on Russia by refusing to activate the Starlink network in the Crimea region.
Amid the ongoing stock market sell-off in September, hedge funds are shorting stocks, according to data from Nasdaq and the New York Stock Exchange. These short positions reflect investor uncertainties surrounding the long-term prospects of the market. While positive developments such as a slight pullback in US Treasury yields and a decrease in oil prices provided some relief to investors, the consensus among both retail investors and renowned analysts and fund managers at CNBC’s Delivering Alpha conference remains cautious. The possibility of an impending recession, a potential 5% 10-year US Treasury yield, and another rate hike by the Federal Reserve continue to dominate discussions. However, the future course of action remains uncertain, with inflation data possibly influencing the Federal Reserve’s decision-making.