Every weekday the CNBC Investing Club with Jim Cramer holds a “Morning Meeting” livestream at 10:20 a.m. ET. Here’s a recap of Wednesday’s key moments. Powell hints at future rate increases Strong demand outweighs potential AI crackdown Look out for the Fed’s stress tests 1. Powell hints at future rate increases Stocks are mixed on Wednesday as markets digested Federal Reserve Chairman Jerome Powell’s hawkish remarks on future monetary policy. The central bank head warned of “more restrictions coming,” citing a “very strong labor market.” The Fed had delivered 10 consecutive meetings of interest rate hikes and then a pause in June with a bias for some more this year. During a monetary policy session in Portugal, Powell did acknowledge that too much tightening could lead to an economic downturn. But, he added, it’s not “the most likely case, but it’s certainly possible.” 2. Strong demand outweighs potential AI crackdown Chipmakers are the story of the day after the Wall Street Journal reported that the U.S. government may impose new restrictions on AI chip exports to China. These are largely immaterial for Club holdings like Nvidia (NVDA), whose shares are down only slightly on the news. The Club’s view is that Nvidia has so much demand outside of China that looming regulations shouldn’t disrupt its AI narrative. Check out your email inboxes and texts later Wednesday for a closer look at the new rules and their impact on fellow Club chipmaker Advanced Micro Devices (AMD) 3. Look out for the Fed’s stress tests We’ll be watching out for the release of the annual bank stress test results after the stock market closes Wednesday afternoon These tests typically measure how the largest banks may weather an extreme economic downturn, giving insight into how much capital institutions can return to their shareholders. Club holdings’ Wells Fargo (WFC) and Morgan Stanley (MS) should be well capitalized. (Jim Cramer’s Charitable Trust is long NVDA, AMD, WFC, MS. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
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