This report is from today's CNBC Daily Open, our new, 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
- U.S. stocks closed lower Monday, with most indexes giving up solid gains during the trading day. Asia-Pacific markets largely tracked Wall Street to trade lower Tuesday. Australia's S&P/ASX 200 fell around 1% after the country's central bank unexpectedly raised its benchmark rate by 25 basis points to 4.1%.
- Apple unveiled its $3,499 augmented-reality headset, the Vision Pro, along with a slew of other new products. Investors weren't sure of what to make of Apple's headset — the company's shares dipped 0.76% Monday. However, shares of Unity popped 17.16% after Apple announced a partnership with the game-development software maker.
- The Securities and Exchange Commission sued Binance on Monday. Among the 13 charges against the world's largest crypto exchange are allegations that Binance used market-making companies to inflate trading prices; mixed customer funds with the exchange's own money; and helped U.S. customers evade "know your customer" systems.
- The Japanese yen weakened to trade around 140 against the U.S. dollar Monday. If it falls further, economists predict the country might intervene to prop up the currency. When the yen fell to 150 against the greenback in October, Japan's Finance Ministry supported the currency by selling roughly $48 billion of U.S. dollars for yen.
- PRO May's jobs report showed the U.S. labor market is still surprisingly strong. But that doesn't mean a recession isn't coming, writes CNBC's Jeff Cox, because "the jobs market is always the last to know" about a recession.
The bottom line
Money Report
Before the generative artificial intelligence craze swept markets, investors were caught up in two other technology trends: cryptocurrency and the metaverse. But the latter two received tepid — or downright negative — reactions yesterday.
Get a weekly recap of the latest San Francisco Bay Area housing news. Sign up for NBC Bay Area’s Housing Deconstructed newsletter.
Prior to Apple's keynote at its Worldwide Developers Conference, anticipation over the company's yet-to-be-unveiled headset reached such a fever pitch that Apple shares hit an all-time high of $184.95, pushing it close to a $3 trillion market capitalization. Investors were hoping Apple could save the metaverse — the idea of a shared, immersive and virtual space — which has been struggling to attract attention and users.
Yet after the announcement and demonstration of the Vision Pro headset, investors seemed doubtful that even Apple, which has a history of revolutionizing products like the personal computer, smartphone and tablet, seemed up to the task. Apple's shares lost momentum and ended the day lower. The metaverse, then, remains less a communal gathering space than a black hole into which money disappears.
As for the cryptocurrency industry, investors weren't so much disappointed by its lack of promise than scared off. After news broke that the SEC is suing Binance, cryptocurrency prices sank Monday, with Bitcoin falling below $26,000. Coinbase, a rival cryptocurrency exchange, was caught in the aftermath too. Its shares tumbled 9.05%.
Major stock indexes fell marginally amid the rocky day for tech. The S&P 500 lost 0.2%, giving up gains that brought it to its highest intraday level in nine months. The Dow Jones Industrial Average slid 0.59%. And even though Apple's augmented-reality headset promises to make apps three-dimensional, the tech-heavy Nasdaq Composite was essentially flat, a fitting symbol of how investors felt towards the metaverse.
