Wall Street Today | Gold drops for third day as commodities fall before Fed meeting
Asia stocks to lift, oil drop
Asian stocks may get a fillip today from an easing rout in Chinese shares and a slide in oil, though investors also remain braced for $CBOE Volatility S&P 500 Index(.VIX.US$ surrounding Russia's war in Ukraine and a looming Federal Reserve decision.
Futures for Japan and Hong Kong rose along with Australian shares. $S&P 500 Index(.SPX.US$ and $NASDAQ 100 Index(.NDX.US$ contracts fluctuated following a tech-led Wall Street rebound Tuesday and a bounce in U.S.-listed Chinese shares from a deep selloff.
The Federal Reserve is expected to raise rates, but unique challenges could slow its pace
This time, policymakers are facing unique issues that it did not see several months ago. Economists say there are increasing risks to economic growth that the Fed may not be able to raise rates as much as it would like. Russia’s invation of Ukraine has made already hot inflation worese and has created more risks for growth.
“There’s a dark cloud of uncertainty over this meeting, but at the end of the day, they know they’re at zero,” said Jim Caron, chief fixed income strategist on the global fixed income team at Morgan Stanley Investment Management.
A $905 million VIX note goes wild after Barclays halts sales
A $905 million exchange-traded note betting on stock volatility endured a roller-coaster session on heavy volumes Tuesday after becoming untethered from the value of its assets following Barclays Plc’s move to stop issuing new shares.
Trading in the $iPath Series B S&P 500 VIX Short-Term Futures ETN(VXX.US$ was halted five times in the first hour as the product jumped as much as 45%. Volumes were at one point more than 50% above the 30-day average. The note later reversed gains to close lower in the wild session.
Gold drops for third day as commodities fall before Fed meeting
Bullion has eased after rallying to within $5 of a record last week as Russia's invasion of Ukraine caused commodities to surge, threatening a combination of low growth and high inflation. Prices of key products including oil have cooled since then, easing those concerns.
"Gold prices have moved lower in the past three days mainly because the oil prices have fallen,” which brings some good news that inflation may ease off a little, Naeem Aslam, chief market analyst at Ava Trade, said in a note.
Pfizer to seek authorization for 2nd Covid booster for people 65 and older
$Pfizer(PFE.US$ and $Biotech(BIOT.US$ are expected to seek U.S. authorization this week for a second Covid-19 vaccine booster for people 65 and older, according to a person familiar with the plans.
If the Food and Drug Administration grants authorization, the additional shot would go to a group of people who are among those with the highest risk of serious illness and death from Covid.
Tesla hikes car prices in the U.S., China after CEO Elon Musk warns of inflation pressure
$Tesla(TSLA.US$ raised the prices of all its models in the U.S. In China, a version of the Model 3 and the Model Y saw price hikes. It is the second increase within the last week.
Tesla did not give a reason for the increases. While materials such as nickel, a key component of electric vehicle batteries, are on the rise.
Microsoft dives into Web3 with investment in Ethereum co-founder’s start-up ConsenSys
Blockchain start-up ConsenSys has raised $450 million in a new round of funding that more than doubles its valuation to $7 billion.
The cash injection was led by ParaFi Capital, ConsenSys said Tuesday, with $Microsoft(MSFT.US$, Japan’s $SOFTBANK GROUP CORP(SFTBF.US$ and Singapore’s Temasek also joining as new investors in the company.
New York-headquartered ConsenSys was founded in 2014 by Joseph Lubin, a co-founder of Ethereum. Ethereum is the blockchain platform behind ether, the world’s second-biggest cryptocurrency.
Intel commits $36 billion to making chips in Europe
$Intel(INTC.US$ announced Tuesday that it plans to invest over 33 billion euros ($36 billion) into boosting chipmaking across the European Union as the bloc looks to become more self-reliant when it comes to semiconductors.
The Santa Clara-based chipmaker said it will build two new factories in Madgeburg, Germany, as part of the investment. The factories will use the most advanced chip manufacturing technology as part of an effort to produce chips that are two nanometers or less in width.
Source: Bloomberg, CNBC
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