Associated Press Business Briefs - Aug. 24, 2024

Stock market today: Wall Street rallies near its record heights as 'time has come' for cuts to rates

NEW YORK (AP) — U.S. stocks rallied closer to their records after the head of the Federal Reserve finally said out loud what Wall Street has been expecting for a while: Cuts to interest rates are coming soon to help the economy. The S&P 500 rose 1.1% Friday after Fed Chair Jerome Powell said the time has come to lower its main interest rate from a two-decade high. The index is back within 0.6% of its all-time high set last month. The Dow Jones Industrial Average climbed 1.1%, and the Nasdaq composite jumped 1.5%. Treasury yields fell in the bond market.

Justice Department accuses RealPage of a scheme to help landlords hike rents in antitrust lawsuit

WASHINGTON (AP) — The Justice Department has filed an antitrust lawsuit against real estate software company RealPage, accusing it of an illegal scheme that allows landlords to coordinate to hike rental prices. The lawsuit accuses the company of violating antitrust laws through its algorithm that landlords use to get recommended rental prices for apartments. Justice Department officials say the algorithm allows landlords to align their prices and avoid competition that would keep rents down. In a statement, RealPage said the Justice Department's claims were "devoid of merit and will do nothing to make housing more affordable."

Canadian union threatens to strike against freight railroad hours after trains resume service

TORONTO (AP) — A Canadian workers union has threatened to strike against one of Canada's two major freight railroads. The notice came Friday only three hours after the company's trains had begun rolling again following a potentially economically devastating stoppage. Teamsters Canada spokesperson Marc-André Gauthier says the union filed its strike notice against Canadian National shortly after it announced that it plans to challenge a government order forcing it into arbitration with both CN and Canadian Pacific Kansas City Ltd. to resolve a labor contract dispute. CPKC workers have been on strike since Thursday and the railroad's trains have remained idle.

How to prepare for the Fed's forthcoming interest rate cuts

NEW YORK (AP) — The Federal Reserve is poised to cut its benchmark interest rate next month from its 23-year high, with consequences for consumers when it comes to debt, savings, auto loans and mortgages. Right now, most experts envision three quarter-point Fed cuts — in September, November and December — though even steeper rate cuts are possible. "The time has come" for the Fed to reduce interest rates, Powell said in his keynote speech at the Fed's annual economic conference in Jackson Hole, Wyoming. Based on Powell's remarks and recent economic data, the central bank is expected to cut its key rate by a quarter-point when it meets next month and to carry out additional rate cuts in the coming months.