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Stocks jump after S&P 500 slips into 2022 low

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US stocks rose sharply on Tuesday after S&P 500 fell to a new closing low The Dow Jones Industrial Average has officially entered a bear market – down 20% or more from another broad market index high.

The S&P 500 rose 1.1% early in the session, while the Dow Jones Industrial added more than 200 points, or 0.7%. Technology stocks led the way higher, with the heavy Nasdaq Composite Index up 1.5%.

On Tuesday, Chicago Fed President Charles Evans said while speaking at a forum in London that the US central bank You will need to raise interest rates by at least another percentage point This year, however, he does not see the labor market heading into “stagnation-like” conditions.

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Tuesday’s moves come as Wall Street increasingly expects the Fed’s rate hike campaign to fight inflation It leads to an economic downturn. Chairman Jerome Powell repeatedly Warn of some “pain” In a speech last week after the central bank’s latest policy announcement.

“We have always understood that restoring price stability while achieving a relatively modest decrease in unemployment and a soft landing would be very difficult and we do not know if this process will lead to a recession or if so, how important this recession is,” he said.

CBOE Volatility Index (^ VIX), which measures Wall Street’s expectations of short-term market volatility, remained well above the key 30 level, posting its highest reading since June 17. Highest since April 2010 – And two-year Treasuries are above 4.2%, the highest in 15 years.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, US, September 26, 2022. REUTERS/Brendan McDermid

With key averages dropping below their June 16 lows, strategists are questioning how low indices should fall as Fed policy makers continue to raise interest rates, and on the corporate side, analysts begin to cut earnings expectations.

Mike Wilson of Morgan Stanley, among the stock’s most bearish analysts, expects an acceleration in downward earnings revisions in the coming months will push stocks lower, forecasting that the S&P 500 will reach the 3000-3400 range later this fall.

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Meanwhile, Chris Larkin, managing director of trading at E*TRADE at Morgan Stanley, was more upbeat.

He said on a note: “Many traders and investors may not have noticed that last week’s slide has brought the SPX back below the bear market threshold, and as the milestone may be unwelcome, historical sentiment shows that the worst is often over by the time SPX first reached the threshold of a bear market – which in this case was just over three months ago.”

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter Tweet embed

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MicroStrategy is at its lowest level since 2020 after the sales were revealed

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(Bloomberg) — Shares of MicroStrategy touched their lowest level since August 2020 after the enterprise software company, which in recent years has been known as the largest buyer of bitcoin, revealed its first sale of the token.

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The stock fell 1.1 percent to $136.63 on Thursday, down 75 percent this year. Bitcoin rose less than 1% to around $16,590 and is believed to have fallen 64% since the start of the year.

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In a filing on Wednesday, MicroStrategy said it acquired approximately 2,395 Bitcoin between the beginning of November and December 21 through its subsidiary MacroStrategy, and paid out approximately $42.8 million in cash. It then sold 704 of the tokens on Dec. 22 for a total of about $11.8 million, citing tax purposes, before buying another 810 of them two days later.

Matt Malley, chief market strategist for Miller Tabak + Co. Step down as CEO. This news means they don’t seem to want to do that anytime soon.”

Overall, MicroStrategy held about 132,500 bitcoins worth over $4 billion USD as of December 27th. The company paid an average purchase price of $30,397 per bitcoin.

“Given MicroStrategy’s $2.4 billion in leverage, we believe the company may have a lot of leverage over Bitcoin, and may face some liquidity risk,” Jefferies analyst Brent Thiel wrote in a note on Wednesday. Thill has an “underperform” rating on the stock and a price target of $110.

Over the years of the pandemic, MicroStrategy has become well known for its Bitcoin takeovers, largely led by Saylor. Earlier this year, Saylor stepped down from that role and now serves as CEO at the company and continues to lead its bitcoin strategy.

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MicroStrategy was trading around $120 before Saylor first announced the company’s Bitcoin purchases in 2020. The stock reached an all-time high of $1,315 in February 2021.

(Updates to include the stock’s closing price in the second paragraph.)

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Bankman-Fried May File Petition in New York Federal Court Next Week Before Judge Louis Kaplan By Cointelegraph

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Former FTX CEO Sam Bankman-Fried is set to appear in court on the afternoon of January 3 to enter a lawsuit over two counts of wire fraud and six counts of conspiracy against him related to the collapse of cryptocurrency exchange FTX, according to Reuters. mentioned on December 28, citing court records. Bankman-Fried will appear before District Judge Lewis Kaplan in Manhattan.

Judge Kaplan was appointed to hear the case on December 27 after the original judge in the case, Ronnie Abrams, Resigned herself because of connections between FTX and the law firm Davis Polk & Wardwell, where her husband is a partner. The company provided advisory services to FTX in 2021.