5 things to know before the stock market opens Friday, May 13
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Investors need the following news, analysis and trends to help them start trading:
1. Dow futures surge after the six-session losing streak of the 30-stock Average
As a trader is working on the New York Stock Exchange’s floor in New York City (U.S.A.), May 3, 2022, the Twitter logo and trading information are displayed.
Brendan Mcdermid | Reuters
U.S. stock futures bounced Friday, with the S&P 500 trying not to join the Nasdaq in a bear market, which is defined by a drop of 20% or more from a prior high.
- NasdaqFutures were the most popular despite a 12% drop in premarket prices Twitter shares. After the event, stock fell 25% Elon MuskTwitter user Musk tweeted that his purchase of the social media network was “temporarily suspended” on Friday. These losses were being absorbed by Twitter when Musk tweeted that he was “still committed” and that he would continue to tweet about the transaction.
- The Dow Jones Industrial AveragThursday: e dropped for the sixth straight sessionA correction is defined as a further sinking into the market, characterized by a decrease of 10% to 15% from the prior peak. This is the S&P 500The drop was slight. The NasdaqWe managed to make a small gain.
2. After Powell said he couldn’t promise a soft landing, bond yields rose
The 10-year Treasury yieldFreitag ticked higherBut, they remained below 3 percent. A key threshold that had been breached for the first times since December 2018 was reached on May 2, 2018.
- The Federal Reserve is expected to increase interest rates aggressively to combat inflation, which has led to bond yields rapidly increasing. It is possible that inflation could remain high even if the economy slows.
- Fed Chairman Jerome PowellMarketplace posted a Thursday interview in which he stated that he believed that the government was stealing his identity. can’t promise a so-called soft landingFor the economy. Although he warned about the potential for economic distress if inflation is not controlled, he stated that it was his number one priority.
3. Elon Musk tweeted two times about his deal with Twitter.
Musk shared Twitter shares with wild abandon Friday morning by sending two tweets. After saying he paused his Twitter offer seeking more information about how many fake accounts there are on the social media platform, he later said he was “still committed to the acquisition.”
At 5:44 AM, the first tweet was sent. ET.
Two hours later, the second tweet was sent.
The TeslaMusk last month announced his intention to buy Twitter at $44 billion. Musk previously said that one of the top priorities for him would be to get rid of “spambots” on Twitter. Tesla shares dropped by 5% last Friday, largely due to fears that Musk’s Twitter deal would distract from the company. But they rose more than 5% after Musk tweeted the first tweet. They held their gains for the rest of the week.
4. Some stablecoins gain their footing and help to propel the crypto market higher
Tether’s peg to dollar has been questioned for years.
Bloomberg via Getty Images| Bloomberg via Getty Images
The largest stablecoin in the world, Tether regained its peg to the dollarAfter more than 3 billion tokens were removed from the system, it took just one day to get rid of them all. The cryptocurrency — which is meant to always be worth $1 — sunk as low as 95 cents on Thursday. TerraUSD (or UST) is a controversial stablecoin that was meant to be tied 1-to-1 with USD has fallen in the last few days. trading around 8 cents Friday. Luna, a token that is closely linked to UST, now has a value of $0
- Stablecoin’s saga added uncertainty to the market, which has contributed to steep declines in all crypto markets. Bitcoin was at $30,000 on Friday, a rebound from lows in late 2020. The current level of bitcoin, which is the most popular cryptocurrency worldwide, has fallen more than half off its November record of 68,000 dollars.
5. Robinhood is owned by the CEO of a large crypto exchange
Sam Bankman Fried, CEO, FTX USA Derivatives testified at the House Agriculture Committee Hearing titled Changing Market Roles. It was held in Longworth Building, Thursday May 12, 2022.
Tom Williams, CQ Roll Call, Inc.| CQ-Roll Call, Inc. | Getty Images
- Robinhood’s shares surged more than 22% on Friday in premarket. The stock reached an all-time low in regular trading on Thursday. Robinhood closed the session at $8.56. This is 77% less than its IPO price in July.
- According to the document, Bankman-Fried stated that he does not intend to “take any action towards changing or influencing control of the company.” According to the filing, he could “occasionally engage into discussions” with management.
— CNBC’s Jesse Pound, Vicky McKeever, Jeff Cox, Sam SheadAnd Tanaya MacheelContributed to the report.
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