All articles tagged with #market slump
Microsoft's stock (NASDAQ:MSFT) declined following an initial assessment of OpenAI, leading to concerns about a potential billion-dollar loss, which caused the stock to slump.
Crypto markets declined sharply after Federal Reserve Chair Jerome Powell's brief remarks, which did not include any guidance on monetary policy or economic outlook, leading to increased volatility and uncertainty in the crypto sector amid a data blackout and expectations of rate cuts.
Brazilian markets slumped after state oil giant Petrobras announced a smaller-than-expected dividend payout, leading to concerns of increased government intervention in the nation’s largest companies. The Brazilian real weakened, swap rates climbed, and the benchmark equity index fell to its lowest in over three weeks, with Petrobras shares dropping over 10%. Analysts rushed to remove their buy-equivalent ratings for Petrobras, citing unpredictable political risk. The dividend announcement is seen as a setback for Brazilian investors, signaling potential political influence over corporate sectors.
US stocks slumped as investors awaited the Federal Reserve's next interest rate decision. All three benchmark indexes closed lower, with the Dow losing over 100 points. Markets are pricing in a high chance of rates being kept level on Wednesday, but some traders expect one more rate hike before year-end. Oil prices remained near 10-month highs, while a key barometer of China's economy and US housing starts signaled warning signs. Tech stocks could rally due to increased AI spending, and the stock market is seen as a good deal for wealth-building.
Bitcoin's value dropped below $28,000 on Coinbase, continuing its two-day slump, with the decline attributed to Coinbase CEO Brian Armstrong's indication that the exchange giant might leave the US. The global crypto market could shrink significantly if Coinbase leaves the US market, leading to a lack of confidence in decentralized exchanges. The lack of regulatory clarity is also causing prices to drift lower. Ethereum, the second-largest cryptocurrency by market value, also dropped nearly a percentage point to around $1,948. Most other major tokens were trading in the red, with the CoinDesk Market Index down 3.9% for the day.
Samsung has announced "meaningful" production cuts for NAND and DRAM due to the ongoing slump in demand that has impacted the entire memory industry over the last several months. The cuts come as Samsung Electronics has experienced a substantial drop in revenue and profits, with Q1 sales dropping 19% and operating profits plummeting 95%. Despite these cuts, Samsung intends to continue their long-term investment plans in new fabs. The reduction in memory fab utilization rate will decelerate the drop in commodity memory prices, but the oversupply issue is expected to persist until the third quarter.