5 Things to Know Before the Stock Market Opens News of the Day for August 26, 2024

IBM

IBM Reportedly Is Closing Its Watson Health Business

The company is ending its IBM Watson Health business after selling its assets to a health company called Interwell Health. MarketWatch reported that Interwell did not reveal how much it was paying for IBM's Watson Health business.

As of February 2022, IBM Watson Health had more than 250 employees and IBM recognized more than $1 billion in revenue from the business.

Paramount Global

The Media Bidding War for Paramount Global Is Over

Paramount Global is the latest company to find itself involved in a media bidding war. The companies involved in the bidding war include Comcast, Charter Communications, DirecTV, and Lions Gate.

Comcast is reportedly the frontrunner in the bidding war, but it's still too early to say who will ultimately win.

Stock Futures

US Stock Futures Are Little Changed After Last Week's Rally

U.S. stock futures are little changed this morning after a rally last week. The Dow Jones Industrial Average is up 0.1%, the S&P 500 is down 0.1%, and the Nasdaq Composite is down 0.2%.

The rally last week was driven by hopes that the Federal Reserve will cut interest rates soon. However, those hopes have faded this week as data has shown that the economy is still growing.

Bond Yields

Stock Futures and Bond Yields Are Slumping as Federal Reserve Rate-Cut Bets Rise

Stock futures and bond yields are slumping this morning as investors bet that the Federal Reserve will cut interest rates sooner than expected.

The Fed has been raising interest rates in an effort to combat inflation. However, data released this week has shown that inflation is still high, which has led investors to believe that the Fed will need to raise rates more aggressively.

Nikkei

Japan's Nikkei Plunged

Japan's Nikkei stock index plunged more than 2% this morning after the Bank of Japan raised interest rates for the first time in 25 years. The Bank of Japan had previously maintained a negative interest rate policy.

The Bank of Japan's decision to raise interest rates has sent shockwaves through the financial markets, as it is seen as a sign that the central bank is losing confidence in the economy.