19 May: Market Highlight of the day:
The Dow Jones Industrial Average fell Thursday, leaving the broader market on its doorstep to an eighth straight weekly loss as early-day attempts at clawing back recent losses.
The recent rise of the economy has been largely thanks to cutting-edge technology that’s helping people live better lives. But with expectations for aggressive Federal Reserve rate hikes continuing, investor sentiment is now reflecting those worries and stocks came under fire today as a result.
iPhone sales are on track for a record-breaking year, with Bank of America raising estimates to 237 million units from 231 prior years. The new number marks an increase from their previous guess that may have been too pessimistic seeing the market performance of Apple.
Cisco was among the top losers of the day slipping around 14% bearing the impact of Chinese lockdowns. Credit Suisse in a note revealed: “Although the lockdown is expected to be lifted on June 1, it remains uncertain if improvements can be seen in the short term considering ports and airports are expected to be congested as nearly all manufacturers will compete for the capacity to get their products shipped,”
The economy is still feeling the effects of recent policy decisions, with jobless claims climbing higher than expected and manufacturing activity dropping even more dramatically.
Crude prices rose on Thursday after a two-day slide, but they remain well below their recent highs. The reason? President Joe Biden might meet with Saudi Arabia’s crown prince in what could be an unprecedented diplomatic turnaround that would allegedly compel the key oil producer to consider U.S requests for more supply.
The Canadian government announced they will be joining the Five Eyes intelligence-sharing network in order protect their national security. Canada revealed its plan on banning Huawei Technologies Co Ltd., ZTE Corp (HK:0763) 5G gear because these two companies are suspected of being linked with Chinese governments and hackers who may try and compromise networks across North America.
The euro shot up against the dollar on Thursday as investors responded positively to news that central bank dovish members are now in favor of a quarter percentage point rate hike as soon at July.
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