Here are five things you should know for Friday, May 13:
1. — Stock futures rose as Powell rate calms rate betting bulls
U.S. stocks rose on Friday, potentially breaking a six-day streak of losses for the Dow as investors sought an ease on market volatility amid stabilizing cryptocurrency prices and detailed commentary on rate hikes. short-term report of Federal Reserve Chairman Jerome Powell.
Speaking with Marketplace’s public radio show, Powell essentially confirmed the case for 50 basis point increases at the next two policy meetings in June and July “”if the economy works as expected” and reiterated his view that an increase in 75 basis points is ‘not being’ actively considered”.
Bets on a larger move, given the surprising strength of underlying inflation found in major consumer prices last month, remained high, with CME Group’s FedWatch tool pegging the odds at around 12.8% for June and 12% for June. July.
Still, the broader reassurance on the Fed’s rate path appears to have at least neutralized one of the market’s top concerns this week, while the other — the ongoing turmoil in cryptocurrency prices — has also calmed down, with bitcoin rising 5,000,000. 3% on overnight trading. exceed the $30,000 mark.
Evidence of modestly firmer ‘risk at’ sentiment was seen in a pullback in the US Dollar, which traded at 104.55 against a basket of its global peers and remains at the longest pace of weekly gains in four years,
The CBOE’s benchmark volatility indicator, the VIX, also dipped, falling 5.7% in European hourly trading to 30.70 points.
On Wall Street, futures linked to the Dow Jones Industrial Average indicate a 220-point gain at the opening bell, while those linked to the S&P 500, which is down 17.5% on the year, are priced in for a 40-point move to the Downside The Nasdaq-linked futures are looking for a 195-point jump.
2. — Twitter shares tumble as Elon Musk says $44 billion acquisition is ‘on hold’
twitter (TWTR) – Get report from Twitter, Inc. Stocks plummet in premarket after Tesla (TSLA) – Get report from Tesla Inc CEO Elon Musk said his $44 billion acquisition of the social media group was “temporarily on hold”.
Musk, who has tried to alter the funding of his ‘privatization’ deal on several occasions, bringing in new equity investors and reportedly asking others to reduce exposure of the $62.5 billion in Tesla stock he has pledged against margin loans , made the statement via his verified Twitter account on Friday in response to a May 2 Reuters story.
“Twitter’s settlement temporarily suspended pending details that support the calculation that fake/spam accounts actually represent less than 5% of users,” Musk said.
Twitter shares are down 20.7% in premarket trading to indicate an opening price of $35.80 each. Tesla shares, meanwhile, rose 6.44% to $774.90 each.
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3. — Bitcoin prices rise as the stablecoin market finds equilibrium
Bitcoin prices retreated above the $30,000 mark in overnight trading amid a broader stabilization of sentiment in global cryptocurrency markets following this week’s collapse of the TerraUSD stablecoin.
TerraUSD, which uses an algorithm to maintain a one-to-one parity against the US dollar, dropped to 23 cents against the dollar earlier this week, triggering a forced sell-off in its digital currency paired Luna and sparking concerns from one runs on other so-called stablecoins in the $100 billion global market.
Tether, the biggest and most popular stablecoin, ‘broke the money’ earlier this week but appears to have stabilized just below the $1 mark on Friday as Terraform Labs halted the restart – and then halted – its blockchain Terra, as he promised to “devise a plan to reconstitute” the market.
Bitcoin was last seen trading 4.8% higher on the session at $30,339.90 each.
4. — Robinhood shares rise as FTX CEO Bankman-Fried builds a 7.6% stake
Robinhood Markets (HOODED) – Get a Class A report from Robinhood Markets, Inc. Shares rose higher in premarket trading after the CEO of cryptocurrency exchange FTX revealed a 7.6% stake in the online trading platform.
Samuel Bankman-Fried made his investment public on Thursday in an SEC filing, but noted that he does not plan to build a controlling stake in the dejected trading platform. Robinhood, via his verified Twitter account, said the Bankman-Fried move was “an attractive investment”.
“We have the best customer base, we’re releasing great new products, and we have the team to deliver,” said Robinhood. “Our journey has just begun.”
Robinhood shares were marked 21% higher in premarket trading to indicate an opening bell price of $10.36 each.
5. — General Electric shares jump as CFO sees second-half recovery
general electrical (GE) – Get General Electric Company Report stocks rose in premarket trading as investors reacted to comments from CFO Carolina Dybeck Happe, suggesting the industrial group would see a broad improvement in cash flow over the second half of the year.
Dybeck Happe told the Goldman Sachs Industrials & Materials Conference that while “nothing is certain in an environment where so much is changing day by day”, she was confident the group would see “a path to significant growth in the second half”.
Last month, CEO Larry Culp said supply chain demand and inflationary pressures are likely to persist in the current quarter, noting that the full-year profit forecast leans towards the lower bound of its January guidance.
GE confirmed its 2022 forecasts, which it first published in January and reiterated last month saying it expects adjusted earnings in the region of $2.80 to $3.50 a share for the full year — albeit at the lower end. – while generating free cash flow in the region of $5.5 billion to $6.5 billion, a figure that will increase to $7 billion by 2023.
General Electric shares were marked 2.35% higher in premarket trading to indicate an opening price of $75.00 each.