CNBC Daily Open: The Fed's rude awakening

This report is from today's CNBC Daily Open, our 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 .

Markets start week lower
U.S. stocks started the shortened week lower on Tuesday as investors closely watched fourth-quarter earnings, while tracking an uptick in Treasury yields after a Federal Reserve official said the central bank's interest rate cutting cycle could be slower than what Wall Street expected. Stocks in Asia were lower, as Hong Kong led losses after tumbling 3%. China shares also fell after the country missed fourth quarter GDP estimates but met its year-end growth target of 5%.

Slower pace of Fed cuts
Federal Reserve Governor Christopher Waller said there will be monetary policy loosening this year but the central bank could do it at a slower pace. "In many previous cycles ... the FOMC cut rates reactively and did so quickly and often by large amounts." For this cycle, he said, "I see no reason to move as quickly or cut as rapidly as in the past."

China's growth
Official data showed China's economy grew at a pace of 5.2% in 2023, exceeding Beijing's 5% growth target for the year by a sliver. For the first time since the summer, China posted youth jobless rates which surged to 14.9% for December. The country temporarily stopped reporting the jobless rate for young people last year, saying it had to reassess its methods. Youth unemployment previously recorded a reading of over 20%.

More Big Bank earnings
Goldman Sachs and Morgan Stanley reported earnings on Tuesday, wrapping up results for Wall Street's biggest six lenders. Morgan Stanley's fourth quarter revenue topped analysts'