5 things to know before the stock market opens Wednesday, July 10

Here are five key things investors need to know to start the trading day:

It’s yet another record close for the S&P 500. The broad market index advanced 0.07% to close the session at 5,576.98. This marks the index’s 36th record close in 2024. Also posting gains, the Nasdaq Composite added 0.14%, closing the session at 18,429.29. Just like the S&P, the tech-heavy index ended the day at a fresh record, and both hit all-time highs during the trading session. Unlike those two indexes, the Dow Jones Industrial Average moved 0.13% lower, ending at 39,291.97. Follow live market updates.

High inflation is not the only risk facing the economy. While the labor market and economy remain strong despite signs of cooling, holding interest rates too high for too long could threaten both, according to Federal Reserve Chair Jerome Powell. On Tuesday, the central bank leader said, “Reducing policy restraint too late or too little could unduly weaken economic activity and employment.” His comments come as markets expect a Fed rate cut in September, with another cut of a quarter percentage point taking place by the end of this year. In their June meeting, FOMC members signaled only one cut while indicating that inflation is on the right track.

Something strange is going on in the housing market. The inventory of both new and existing homes is rising. Simultaneously, home prices – which typically cool when supply is high – are also rising. Not only that, the supply of new homes appears to be too high. Right now, there is a nine-month supply of newly built homes for sale, which is nearly three times that of existing homes. The National Association of Home Builders shows that new construction makes up 30% of total inventory. This is two times more than its historical share. What’s behind the divide? Well, it’s been driven by the swing in mortgage rates and the impact of the subprime mortgage boom. Uncertainty remains as to whether rates and prices will tone down in the second half of the year, as analysts have been anticipating.

Microsoft is giving up its observer seat on OpenAI’s board. In a letter to OpenAI that was seen by CNBC, Microsoft’s Deputy General Counsel Keith Dolliver wrote that the seat was no longer needed because the company had “witnessed significant progress from the newly formed board.” Dolliver also said that the position on the board had provided insights into its activities without compromising its independence. This comes as Microsoft faces regulatory scrutiny in Europe and the U.S. over artificial intelligence. The European Commission previously said Microsoft could face an antitrust investigation. The company previously took the nonvoting board seat in November in an effort to quell remaining questions concerning Microsoft’s interest in the startup.

Automation software developer UiPath is cutting its workforce. In an SEC filing, the company said it’s laying off about 10% of its employees – about 420 jobs – as part of its restructuring plan. The majority of the layoffs will be carried out by the end of the fiscal first quarter, which ends next April. The company also revealed that it expects to incur between $15 million and $20 million in layoff-related costs, with total restructuring costs being between $17 million and $25 million. This comes after UiPath announced two rounds of job cuts back in 2022. Shares of the company dropped about 7% during Tuesday’s trading session following the news. Shares have also lost more than half their value in 2024.

— CNBC’s Brian Evans, Sarah Min, Jeff Cox, Diana Olick, Ryan Browne, Matt Clinch and Todd Haselton contributed to this report.

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