Headlines: Fear grips the heart! Tech Stocks Now Off to Worst Start of Year via /r/wallstreetbets #stocks #wallstreetbets #investing


Headlines: Fear grips the heart! Tech Stocks Now Off to Worst Start of Year

The main headlines that the global financial media shared last night and this morning were.

1. January 17 due to Martin Luther King Day, the U.S. stock market closed for a day

2. The Federal Reserve in March after raising interest rates to the outside world to convey the future policy direction will be difficult

3. U.S. inflation soared, leading to a surge in demand for inflation-protected savings bonds

4. Walmart is quietly preparing to enter the meta-universe

5. Technology stocks have seen the worst start to the year since 2016, the fear of interest rate hikes grips the mind

6. Vito Group: oil prices could rise more due to tight supply

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U.S. stocks will be closed for one day on Jan. 17 for Martin Luther King Jr. Day

U.S. stocks will be closed for one day on Monday, January 17, in observance of Martin Luther King Jr. Day, and will resume normal trading on Tuesday, January 18.

In January 1986, President Reagan signed a decree designating the third Monday of January as Martin Luther King Jr. Day in honor of the civil rights leader, and making it a federal holiday.

To date, there have been only three instances of personal anniversaries being observed as legal holidays in the United States: Abraham Lincoln Day, George Washington Day (also known as President's Day), and Martin Luther King Day. King is the only non-U.S. president to be honored to date, and the only African-American to enjoy this honor.

Born on January 15, 1929, in Atlanta, Georgia, King delivered his famous speech "I Have a Dream" on August 28, 1963. He and several leaders of the civil rights movement pushed for the passage of the Civil Rights Act in 1964, which outlawed segregation and racial discrimination.

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After the Fed's March rate hike, it will be difficult to communicate future policy direction to the outside world

As the Fed's January meeting approaches, officials are less confident that inflation will fall below 3% by year-end, as expected, and have begun to say that they may need to raise rates sooner than expected.

This month, a number of officials raised the possibility of a rate hike in March and the possibility of needing to raise rates four times this year, or even five times. Just a few weeks ago, they were expecting three rate hikes in 2022; a shift that will overshadow the Jan. 25-26 meeting.

It also highlights one of the biggest challenges to providing policy guidance as the epidemic continues unabated: how can future policy actions be communicated to the outside world as economic data fluctuates up and down forcing the Fed to constantly revise its economic outlook.

"Forward guidance has previously been a tool of expediency in the face of low inflation and downward inflationary pressures," said Derek Tang, economist at LH Meyer/Monetary Policy Analytics in Washington. "If the risks are two-way or skewed to the upside, it's not clear if it's still sustainable."

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Soaring U.S. Inflation Leads to Surge in Demand for Inflation-Protected Savings Bonds

The government sold $2.78 billion in Series I savings bonds in December, after previously selling $1.07 billion of such bonds in November, according to the U.S. Treasury. the December figure was $1 billion more than the record annual high set in 2018, when rising oil prices pushed inflation to 3%.

In December 2021, the U.S. consumer price index rose 0.5 percent from a year earlier and 7 percent from a year earlier, the biggest year-over-year increase in 40 years since June 1982, according to data released last Wednesday by the U.S. Bureau of Labor Statistics.

The only positive factor was a slower year-over-year increase – 0.8% in November 2021 compared to 0.9% in October. Excluding food and energy, which have volatile prices, the consumer price index rose 5.5% year-over-year in December.

In fact, demand would have increased even more if the government had not placed a $10,000 per person per year limit on buying the bond online.

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Wal-Mart is quietly preparing to enter the meta-universe

Since Facebook announced it was changing its company name to Meta to signal its ambition to move beyond social media, numerous companies have been rushing to figure out how to fit into the virtual world, says trademark attorney Josh Gerben.

Walmart appears to be trying to enter the meta-universe with plans to create its own cryptocurrency and NFT.

The major retailer filed several new trademarks late last month indicating its intention to manufacture and sell virtual goods, including electronics, home decor, toys, sporting goods and personal care products. In a separate filing, the company said it will offer virtual currency as well as NFTs to users.

Walmart filed the application on Dec. 30 last year, according to the U.S. Patent and Trademark Office. In all, seven separate applications were filed.

Nike filed a series of trademark applications in early November last year previewing its plans to sell virtual branded sneakers and apparel.

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Tech Stocks See Worst Annual Start Since 2016 Fears of Rising Interest Rates Loom

With doubts about runaway inflation jeopardizing the high valuations brought on by the market rally of the past few years, stocks of U.S. technology companies are off to their worst start to the year since 2016.

Investors are reluctant to invest heavily in growth stocks after several attempts at a strong comeback failed this week, and there are still no major signs that the pressure on tech companies will ease in the near term.

The Nasdaq 100 is down more than 4% this year, and Friday's late-day rally erased some of the losses from earlier in the week, but did little to help. The Nasdaq Composite Index fell for the third straight week.

Some high-flying growth stocks are bearing the brunt of the growing belief that the U.S. Federal Reserve will soon begin withdrawing the massive monetary stimulus that has been in place since the outbreak of the epidemic.

Data this week showed that U.S. consumer prices rose last year at the biggest rate since June 1982, and U.S. retail sales fell the most in 10 months in December, suggesting that higher prices may have kept consumers on the sidelines, all of which fueled concerns about interest rate hikes.

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Vito Group: Oil Prices Could Rise More Due to Tight Supply

Crude oil prices, which have risen more than 10 percent this year, could rise even more because of tight supplies, the world's largest independent oil trader said.

"These prices are reasonable," Mike Muller, head of Asia for the Vidor Group, said Sunday. "Strong spot premiums are very reasonable," he said, referring to a bullish pattern in which short-term futures are more expensive than later futures.

Oil rose for the fourth straight time last week, its longest streak since October, with signs that oil consumption will keep growing despite the spread of the Omnicron variant. Meanwhile, idle capacity is declining as some of the world's largest producers work to boost output.

Brent crude is up 11 percent this year to more than $86 a barrel, extending last year's 50 percent gain.

While natural gas prices have climbed enough to cause some industrial users, including Pakistan and Europe, to reduce consumption, the oil market has not yet reached that point, Mueller said.

Submitted January 17, 2022 at 08:46AM by lilyxu185
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