Market Moves and Fed Projections: Key News for Investors to Start Their Trading Day

Important News for Investors

Stay informed with the latest news to start your trading day:

1. Market Moves

Stocks experienced a decline on Wednesday as the Federal Reserve hinted at the possibility of another rate hike in the future. While the expected Fed decision was already priced in, investors were uncertain about future rate hikes. The S&P 500 lost 0.94%, the Dow Jones Industrial Average dropped 0.22%, and the Nasdaq Composite slid 1.53%. This decline was primarily due to significant drops in Microsoft, Nvidia, and Google-parent Alphabet. Stay updated with live market updates.

2. Fed Projections

The Federal Reserve announced that there might be one more rate hike in 2023. The current rates between 5.25% and 5.5% are already the highest in about 22 years. After the two-day meeting that concluded on Wednesday, Fed Chair Jerome Powell stated that the central bank still needs to see more progress on inflation. The dot-plot projections released by the Fed indicated a potential rate hike to 5.6% by the end of 2023. They also projected two rate cuts in 2024, two fewer than what was forecasted in June.

3. Trading Apps

Apple had plans to launch an investing feature in collaboration with Goldman Sachs in 2022, capitalizing on the popularity of trading apps like Robinhood in 2020. However, they abandoned the project when the market turned downward, and interest rates increased. Apple was concerned about potential backlash if users experienced losses while using their product for stock market trading. Therefore, the project was put on hold.

4. IPOs Are Back

Recent IPOs include Arm, Instacart, and Klaviyo, with Klaviyo debuting on the New York Stock Exchange and seeing a 9% increase in its initial public offering. However, it’s uncertain how long this buzz will last. Instacart shares fell by almost 11% on their second day of trading, continuing the decline that started immediately after their debut. Arm’s stock is also nearing its debut price after a 25% rally on its first day of trade.

5. End in Sight for Writers’ Strike?

After face-to-face meetings, writers and producers are close to reaching an agreement to end the Writers Guild of America strike. Sources suggest that the WGA and the Alliance of Motion Picture and Television Producers aim to finalize a deal on Thursday. This would mark a significant step towards resolving the strike that has left the Hollywood production of TV shows and movies at a standstill since May 2.

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