Wall Street Today | The Fed is Likely to Hike Rates by a Quarter Point Wednesday but It Must Also Reassure It Can Contain a Banking Crisis
MACRO
The Fed is Likely to Hike Rates by a Quarter Point but It Must Also Reassure It Can Contain a Banking Crisis
The Fed is expected to raise interest rates Wednesday by a quarter point, but it also faces the tough task of reassuring markets it can stem a worse banking crisis.
Economists mostly expect the Fed will increase its fed funds target rate range to 4.75% to 5% on Wednesday afternoon, though some expect the central bank could pause its hiking due to concerns about the banking system. Futures markets were pricing in a roughly 88% chance for a rate rise, as of Tuesday afternoon.
Yellen Says US Will Intervene If Needed to Protect Smaller Banks
Treasury Secretary Janet Yellen said on Tuesday the US government could repeat the drastic actions it took recently to protect bank depositors if smaller lenders are threatened.
SECTORS
Ark's Cathie Wood Sees Silver Lining in $2 Billion Loss
The founder and chief executive officer of ARK Investment Management said Tuesday that she has over $2 billion in losses from selling stocks during the market rout. By selling stocks at a loss, those losses can now lower, and potentially offset the tax bill Wood's funds could receive on future capital gains.
COMPANY
Moody's Lifts Tesla's Rating; Stock Rises
The credit rating agency $Moody's (MCO.US)$ has lifted electric vehicle (EV) maker $Tesla (TSLA.US)$'s credit rating one notch above junk status, a Bloomberg report stated. As per Moody's, Tesla's debt now has investment-grade status but is still at the lowest level of investment grade at Baa3. Tesla stock closed up more than 7%.
Google Opens Access to Bard AI Chatbot, Racing to Catch Up to OpenAI
$Alphabet-A (GOOGL.US)$'s Google is granting the public access to its ChatGPT competitor, the conversational AI service it calls Bard.
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GameStop Stock Soars 48% on Surprise Quarterly Profit, Higher Sales
$GameStop (GME.US)$ stock jumped 48% in the extended session Tuesday after the specialty retailer reported a surprise quarterly profit and sales that were above Wall Street expectations.
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Nvidia's Next-Gen AI Chips Are Coming to AWS and Google Cloud
Riding the surge of hype around ChatGPT and other artificial intelligence products, $NVIDIA (NVDA.US)$introduced new chips, supercomputing services and a raft of high-profile partnerships Tuesday intended to showcase how its technology will fuel the next wave of AI breakthroughs.
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Nike Sales Jump as It Works Through Inventory Glut
$Nike (NKE.US)$ made progress working through the inventory glut that squeezed the sneaker maker last year, reporting a 14% jump in quarterly sales and raising its revenue growth target.
First Republic Rescue May Rely on US Backing to Reach a Deal
Wall Street leaders and US officials discussing an intervention at $First Republic Bank (FRC.US)$ are exploring the possibility of government backing to encourage a deal that would shore up the lender, people with knowledge of the situation said. The shares plummeted in post-market trading.
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Source: Bloomberg, Dow Jones, CNBC
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71129854 : Quantitative Easing for the banks, who eases the Powell effect on the average American?