Here are the key news items that investors should be aware of to kick off their trading day:
1. Gloomy Monday
The Dow Jones Industrial Average saw a decline of over 250 points amid concerns among traders that the Federal Reserve may not implement as substantial of a rate cut as anticipated. The Dow decreased by 274.30 points, or 0.71%, while the S&P 500 retreated from its record high, falling by 0.32%, and the Nasdaq Composite slipped by 0.2%.
2. Stepping Up
Shares of Palantir surged over 17% in after-hours trading following the company’s fourth-quarter earnings announcement. Palantir exceeded analysts’ expectations, reporting $608.4 million in revenue, surpassing the anticipated $602.4 million by analysts surveyed by LSEG.
3. Cutbacks at Snap
Snap joins the ranks of tech companies implementing workforce reductions in 2024. The social media firm revealed on Monday its plans to reduce its workforce by 10%, equivalent to around 500 employees. The company stated that the decision was partly made to enhance face-to-face collaboration.
4. Mortgage Rates Surge
On Monday, the average rate on the 30-year fixed mortgage reached 7.04%. This marks the first instance of rates surpassing 7% since December, following robust January job and manufacturing reports.
5. Sales Downturn
Starbucks and McDonald’s have reported that the Israel-Hamas conflict has negatively impacted their sales. The two prominent American restaurant chains noted that the ongoing war is anticipated to continue to hinder demand in the coming quarters. Starbucks disclosed its earnings last Tuesday, resulting in approximately a 2% decline in its stock value.
Source (CNBC)
