Market Daily Update from Etoro
- Fed hikes interest rates
- Meta reports earnings miss
- Gold prices higher
US Federal Reserve raises interest rates by 0.75%
The US Federal Reserve (Fed) has enacted a fresh hike to the central bank interest rate, raising it by 0.75% and taking the Fed Fund rate to 2.25%-2.5%. Speaking to the press after the announcement, Fed chair Jerome Powell said it was no longer possible for the bank to trace rates higher and monetary policy decisions would be made on a meeting-by-meeting basis depending on economic condition changes. Stocks surged on the news as bond yields slumped with the NASDAQ100 soaring 3.53%. Even cryptos such as Bitcoin and Ethereum gained ground.
Meta reports steep decline in revenues
Social media giant Meta Platforms reported an earnings miss yesterday, along with a steep decline in revenues, in the wake of competitors Twitter and Snap both reporting downbeat results. Shares in the firm have now lost around half their value since the beginning of the year. The biggest fallers in the session included Sherwin-Williams (-8.78%), Garmin (-8.72%) and Teledyne Technologies (-7.01%). Among top risers were Chipotle Mexican Grill (+14.7%), PayPal (+12.18%) and Rockwell Automation (+9.58%). US markets today may be affected by Advance GDP data, to be released at 12:30 GMT.
Gold climbs for second consecutive day
After Federal Reserve Chair Jerome Powell implied that the Fed would slow the pace of interest rate hikes, gold climbed for a second consecutive day, weakening the dollar and driving Treasury yields lower. On eToro, investors can gain exposure to the value chain surrounding gold through the GoldWorldWide Smart Portfolio.
- UK100 rises as Lloyds reports earnings: Stocks in the UK rose in trading yesterday as major retail bank Lloyds reported its latest earnings. The firm’s share price was among the top risers, up 5.65%. Also up was Smurfit Kappa (+5.17%) and IAG (+5.46%).
- Crypto markets rally: The crypto market was higher this morning, with the majority of the top 10 cryptos registering gains over the past 24 hours. Bitcoin jumped more than 9%, trading above $23,000. Ethereum was around 13% higher, Cardano and Solana climbed approximately 10%, and XRP and Dogecoin registered gains of around 7%. Outside the top 10, Uniswap jumped around 25%.
- Oil edges higher: The black gold’s price was seen higher this morning, extending previous gains. The climb was supported by decreased crude stocks and increased demand for gasoline in the United States.
- Asian markets mixed: Markets in the East were seen mixed this morning, with the China50 registering small gains, and the JPN225 and HKG50 registering small losses.
- Enphase Energy surges 18%: Shares of the global energy company soared 17.9% after reporting strong second-quarter growth numbers. For the most recent and significant price movements in markets, check out the Market Movers page.
- Amazon and Apple to report earnings: eCommerce goliath Amazon reports its Q2 results after market close today. The firm has just announced a price hike for its Prime subscription service, which gives investors a signal that it is not immune from the cost-of-living crunch affecting major economies. Tech giant Apple also reports its Q3 today after market close and is expected to show more resilience than others thanks to its higher-end and ‘must have’ product lines. To follow upcoming earnings reports, go to eToro’s Earnings Reports Calendar.
- Europe opens higher: The UK100 opened 17 points higher, the GER40 was up 45 points and the FRA40 gained 30 points.
-Cryptoassets are a highly volatile unregulated investment product. No EU investor protection. Your capital is at risk.
-Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.
-The information above is not investment advice.