Key Facts to be Aware of Before Tuesday's Stock Market Opening

Important News for Investors: U.S. Recession Odds Fall, Tech Moguls Face Scrutiny, and Potential Breakthrough in Alzheimer's Treatment

U.S. Recession Probability Falls as Economic Data Points to Continued Growth

Goldman Sachs has reduced the likelihood of a U.S. recession in the next year to 20% from 25%, according to their chief economist Jan Hatzius. The investment bank cited positive economic data, such as first-quarter GDP growth and slowing inflation, as factors contributing to the decreased probability. Hatzius also mentioned the easing in financial conditions, the rebound in the housing market, and the ongoing growth in factory building as indicators that the U.S. economy will continue to expand, albeit at a slower pace. Although inflation remains a concern, the fight against it is ongoing.

Tech Moguls Elon Musk and Mark Zuckerberg Face Increased Scrutiny

Both Elon Musk and Mark Zuckerberg are facing heightened scrutiny from Congress as they expand their business empires. Senator Elizabeth Warren has asked the Securities and Exchange Commission to investigate Tesla and its CEO Musk over potential conflicts of interest and the "misappropriation of corporate assets." On the other side, the Republican-led House Judiciary Committee has extended its probe of content moderation on Meta's social platforms to its new Twitter competitor Threads. Lawmakers have expressed concerns about perceived efforts to limit conservative speech on social media.

Potential Breakthrough in Alzheimer's Treatment Offers Hope for Patients

There may soon be more treatment options available for millions of Alzheimer's patients. Eli Lilly has applied for FDA approval of its Alzheimer's treatment donanemab, which has shown promising results in slowing the disease progression in phase three trials. The company expects a decision from the FDA by the end of the year. This comes after the recent approval of Eisai and Biogen's treatment Leqembi, which paved the way for broader Medicare coverage of similar treatments. Although these potential breakthroughs offer hope, they may come with high costs and limited availability, as well as the risk of side effects such as brain swelling or bleeding. Additionally, the FDA has also approved the first shot that protects all infants from respiratory syncytial virus.

Hot Take: How These Developments May Impact a New Business

As a new business, these recent developments can have both positive and negative implications. The decreased probability of a U.S. recession is good news, as it suggests a more stable economic environment for startups to operate in. With continued growth in the economy and favorable financial conditions, new businesses may find a more supportive market for their products or services.

However, the increased scrutiny faced by tech moguls like Elon Musk and Mark Zuckerberg could have a ripple effect on the industry. As Congress focuses on regulating big tech, new businesses in the technology sector may face stricter oversight and regulations. This can result in more challenges and compliance burdens for startups, particularly if they operate in areas related to data privacy or content moderation.

On the other hand, the potential breakthroughs in Alzheimer's treatment offer an opportunity for innovative startups in the healthcare sector. The demand for improved treatment options for Alzheimer's patients is high, and new businesses that can contribute to this space may find potential for growth and partnerships with established healthcare companies.

However, it is important to note that challenges related to affordability and accessibility may limit the reach of these treatments. New businesses entering the healthcare industry should be mindful of the potential cost barriers and work towards developing solutions that prioritize affordability and inclusivity.

In conclusion, while the decreased recession odds offer a positive outlook for new businesses, the increased scrutiny on tech moguls and the complexities surrounding Alzheimer's treatments should be considered. Startups need to stay adaptable, navigate evolving regulations, and identify opportunities in the changing landscape to thrive in this dynamic business environment.



Article First Published at: https://www.cnbc.com/2023/07/18/5-things-to-know-before-the-stock-market-opens-tuesday.html