Thursday’s Headlines: Fed Report Shakes Wall Street
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Shopify (SHOP) +3.4%
Nordstrom (JWN) +2.4%
Bill.com (BILL) +2.0%
Tripadvisor (TRIP) +2.0%
Moving Down ⬇️
Stitch Fix (SFIX) -3.4%
Eventbrite (EB) -2.9%
Gentex (GNTX) -2.1%
Planet Fitness (PLNT) -2.1%
1. U.S. stocks fell yesterday after the Federal Reserve signaled their intention to raise interest rates by 2023. As a result, the S&P 500 (VOO), Nasdaq (QQQ), and Dow Jones (DIA) dipped between 0.2% and 0.9% on Wednesday. Federal Reserve officials said as a result of the economy recovering quickly from the pandemic, inflation has jumped, which has forced them to consider raising interest rates sooner than expected. For the moment, the committee has left the short-term borrowing rate anchored at close to zero. When the Fed raises interest rates, it forces investors to lower their expectations for the economy, inflation, and many other factors that affect stock prices. More on the Feds report here.
2. Fresh after announcing a major exclusive podcast deal earlier this week, Spotify (SPOT) just launched its live audio app, Greenroom. The new feature, which will go head-to-head with Clubhouse, will give Spotify users an additional way to connect with their audiences and will be available in 135 countries. The Swedish streaming giant had something else up its sleeve at the unveiling, announcing its plans to also launch a Spotify Creator Fund to pay live audio creators for their content this summer. The company stated: “We believe Spotify has an opportunity not only to enable live broadcasts, but to aid discovery, drive consumption, and accelerate growth of the live category overall.” Read more here.
3. On Wednesday, Microsoft’s (MSFT) named Satya Nadella as chairman of the board and also declared a new quarterly dividend of $0.56 per share. The board said that Nadella, who replaced Steve Ballmer as CEO in 2014, has been crucial in scaling up the business, including the billion-dollar acquisitions of LinkedIn and Nuance Communications. The top-level executive shake-up comes as the company is being pressured to combat sexual harassment following misconduct allegations against its founder Bill Gates. To avoid legal disputes and maintain shareholder value, experts said that Microsoft must create a “culture of accountability and transparency” to protect its employees. See more here.