Here are the key headlines that investors should be aware of as they kick start their trading day:
1. Market Developments
Stocks fell on Wednesday after the Fed signaled an interest rate hike was imminent. The Fed’s decision on Wednesday was already expected in the market, but investors are still undecided about future interest rates. The S&P 500 fell 0.94% and the Dow Jones Industrial Average fell 0.22%.
However, the Nasdaq fell 1.53%; This was mainly because Microsoft shares fell more than 2%, and parent Alphabet shares of Nvidia and Google also fell around 3%. Remarkably, all three major markets closed at session lows. Please stay tuned for market updates.
2. Fed Forecast
The Federal Reserve stated that further interest rate hikes are likely in 2023. After a two-day meeting that ended Wednesday, the Fed chose to leave interest rates unchanged. current levels are between 5.25% and 5.5%. This was the highest figure in the region in the last 22 years. Fed Chairman Jerome Powell said the central bank still needs “more evidence of progress” in addressing fiscal concerns.
According to the forecasts announced in the Fed summary, which gives an idea about members’ future expectations, the Fed is likely to raise interest rates to 5.6% by the end of 2023. In addition, the Federal Open Market Committee, which determines interest rates, is expected to make two interest rate cuts in 2024, below its previous forecast in June Hello.
3. Trading Apps
Apple aims to capitalize on strong customer interest in trading apps like Robinhood in 2020. The company has partnered with Goldman Sachs to create an investment that will allow customers to buy and sell products and plans to build in 2022.
However, they decided to stop this move due to market pressure and increasing interest rates. According to information provided by people close to the matter, Apple temporarily stopped the operation because it was concerned that there might be repercussions if users experienced a decrease in sales while using Apple products.
IPO Market Stocks made a comeback as Arm, Instacart and Klaviyo went public within a week. Klaviyo rose 9% in its initial public offering (IPO) on the New York Stock Exchange on Wednesday.
However, it is not yet known how long this excitement will last. Instacart shares fell nearly 11% in its second day of trading on Wednesday, continuing a decline that began after Tuesday’s initial public offering. Instacart’s stock price is currently trading above its IPO price. Likewise, Arm now trades close to its original brand names.
Despite the market’s 25% rally early last week, Arm’s shares were still close to $51 per share when they began trading.
5. Is the End Approaching?
Are the authors struggling to reach the end? Significant progress was made toward reaching an agreement to end the strike led by the Writers Guild of America following an in-person meeting, according to insiders.
Sources believe the WGA and the Motion Picture and Television Producers Guild plan to reach an agreement by Thursday. This development marks the closest the two sides have come to resolving a strike that began May 2, involving more than 11,000 film and television writers and effectively banning the production of Hollywood TV and movies.
The market fell when the Federal Reserve flagged an increase in inflation, particularly affecting technology products. The Fed is expected to increase interest rates again in 2023. Apple suspended its business app due to economic concerns.
Arm, Instacart and Klaviyo’s IPOs had mixed performances. Moving toward the end The Writers Guild of America strike suggests a possible solution. As these developments shape the business environment, investors need to remain vigilant.