Wall Street Today | Powell ramps up inflation fight in economy tough enough to cope
Stocks rally on Powell's bullish economic remarks
Stocks closed near session highs after Chair Jerome Powell struck a more positive tone on the prospects for economic growth as the central bank raised interest rates for the first time since 2018. Bonds retreated.
The $S&P 500 Index(.SPX.US$ posted its biggest two-day rally since April 2020 as Powell said the "economy is very strong" to handle tighter policy and the probability of a recession is "not particularly elevated." Treasury yields rose, led by rates at the front end of the curve.
Powell ramps up inflation fight in economy tough enough to cope
The Federal Reserve kicked off a tightening campaign that's set to be the most aggressive in decades, as Chair Jerome Powell assured Americans that the economy won't tip into recession.
After raising interest rates by a quarter point and signaling six more increases this year, Powell told reporters that inflation is too high, the labor market is over-heated and price stability is a "pre-condition" for the U.S central bank as it tackles the hottest price pressures in 40 years.
China stocks jump most since 2008 as State Council vows support
Stocks across Hong Kong and China staged a stunning rebound after China's state council vowed to keep its stock market stable amid a historic rout that erased $1.5 trillion in value over the past two sessions.
The Hang Seng China Enterprises Index, which tracks mainland companies listed in Hong Kong, jumped 13% on Wednesday, its biggest gain since the global financial crisis. A gauge of Chinese tech firms soared by a record with $Alibaba(BABA.US$ and $Tencent(TCEHY.US$ gaining more than 23%.
Tesla halts bond sale backed by auto leases amid market turmoil
$Tesla(TSLA.US$ delayed a more than $1 billion offering of bonds backed by leases on its electric vehicles, the third issuer in the past week to halt a sale amid market turbulence, according to people with knowledge of the matter.
Netflix tests charging extra for password sharing
Freeloaders beware: Your days of freely accessing $Netflix(NFLX.US$ using your parents' (or ex's, or friend's) password may be numbered.
After years of turning a blind eye on the practice, Netflix Inc. is testing a new program to charge users who share their passwords with people outside of their households.
Starbucks CEO stepping down with Howard Schultz returning on an interim basis and pay of $1
$Starbucks(SBUX.US$ announced Wednesday that Chief Executive Kevin Johnson will retire after 13 years with the company, and Howard Schultz, the company's founder and former CEO, will take on the role again on an interim basis.
Schultz will also rejoin the company's board, and will help with the search for a new CEO. He will be compensated $1 for his work.
Google buys startup Raxium for future AR, MR devices
$Alphabet-A(GOOGL.US$ unit has agreed to a deal to buy Raxium, a startup that develops light-emitting diodes for augmented and mixed reality devices, according to The Information.
The news outlet, which first reported on the pending deal, noted that the acquisition could be a sign that Google wants to own more components of devices it builds.
Lockheed Martin's shares tumble after Pentagon cuts request for F-35s by 35%
The Pentagon will put a request for 61 F-35s from $Lockheed Martin(LMT.US$ in fiscal 2023, which is 35% lower than the previously planned jets of 94, Bloomberg News reported Wednesday, media reports say.
The reason for the reduction was not explained by the Pentagon until the budget is made public.
Source: Bloomberg, Seekingaphla, MT Newswire
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Hanms : NFLX is over priced , better to look for alternative
102568460 : This increase of interest rate, relative to inflationary increase, is hindered by the ongoing war (even though the talks are progressing).
One still needs to be cautious and regularly monitor the signs in the markets and beyond to get a clearer and better picture.
Stay safe everyone !
Rebelraven Hanms: exactly! greedy bastards
70625336 : Powell is crazy. The economy is doing nothing but slipping into a deeper recession. I am going to physical gold for my investments. Hell with him.
cosmiclatte89 : Inflation is up with pent-up demand after this covid, all set to push the economy fast and furious for a bull run. Hope Howard can bring SBUX back to the 100s where it shld belong!!!
Ferdinandy : Catch it while you still can!
Aurelian : video games is a great addition! Nothing can pull this stock back. 400 soon.