NEW YORK, May 24 (FintechZoom): The Dow Jones industrial average closed up 50 points today, after suffering its biggest one-day loss in Snap shares.
Snapchat in a single session lost more than 43%, highlighting the deterioration of the macroeconomic environment which is going to happen in a quicker time frame than expected.
It means that even other social media platforms might experience similar losses if their business is not diversified or if the reliance on certain aspects is leveraged more than should.
The earnings season is coming to an end, but firms are still facing some challenges. Raising worry about inflation and worries over how much growth there will be in the future have taken their toll on company profits this year so far
Homebuilders are putting pressure on the market as new home sales drop to their lowest level since April 2020, and mortgages continue reaching higher than ever before, even higher than in 2009.
Crude prices continued to trend lower for the second day in a row, but it wasn’t quite enough. With WTI settling at $110 and Brent up just 1% on Tuesday’s close. Traders are once again left feeling slightly more optimistic about what will happen in the next weeks – especially considering how events have played out so far this year.
Ed Moya analyst at OANDA said: “Oil prices remain directionless as energy traders try to assess how significant the deceleration in economic activity will be for the short-term crude demand outlook. The oil market remains tight but the Covid situation in China points to a gradual pickup in demand and that might keep this market range-bound a while longer.”
On the FED side, instead, we have seen for the first time in weeks a little drawback from the DXY (the US dollar Index) which fell around 0.30% to 101.79.
Even if ING seems that in the summer Fed might pause its gradual increase of rates.
Atlanta Fed Raphael Bostic encouraged the idea of a Fed to “pause” its activity later this year.
Bostic seems to be answering to Esther George, Kansas Fed president who is an open supporter of an extreme hawkish Fed.
ING said “We favor stability over a sharp correction lower for the broad dollar trend – largely since the Fed has the largest cause of any to be tightening rates sharply,” noting that the Fed rate hike expectations could change following the central bank’s June meeting.
