Welcome to MarketBites! Here's all you need to know about yesterday's market news.
“Nothing succeeds like success."
- Alexandre Dumas
PORTFOLIO MANAGER COMMENTARY
Stocks rose Thursday in an afternoon rally as traders tried to shake off concerns over higher interest rates. The S&P 500 and the Nasdaq were under pressure earlier in the day. However, the market turned around in the afternoon after Atlanta Federal Reserve President Raphael Bostic said he’s “firmly” in favor of sticking with quarter-point hikes. Also, a surge in labor costs and a pullback in jobless claims reported early Thursday point to the likelihood that the Fed will raise its benchmark interest rate another 0.25 percentage point later this month.
In corporate earnings, Salesforce and Okta shares jumped in on strong results and guidance. Silvergate Capital, meanwhile, shares plunged more than 57%, after the company delayed its 10-K annual report. Tesla shares, popular with retail investors, lost 5.8% after the company failed to unveil details of any next-generation vehicles during its much-anticipated investor day Wednesday.
CHART OF THE DAY
Economic activity in China showed sharp expansion for a second straight month, in an early sign the country may be shaking off the impact of pandemic curbs sooner than expected. Some economists cautioned against reading too much into February’s data as they reflect one-time factors such as the timing of the Lunar New Year holiday as well as pent-up demand released by the exit from zero-Covid controls in December and January.
WHAT ELSE IS HAPPENING
- Tesla's growth ambition comes with a $175 billion price tag - read here
- Activist hedge fund manager takes passive stake in AMD - read here