Traders on the floor of the NYSE September 30, 2022.
Here are the key news items investors need to start their trading day:
1. A little relief
The weather was bleak in New York on Monday, but the markets weren’t for a change. Stocks recovered sharply as investors tried to shake off a brutal September, setting new lows for the year. The Dow had its best day since June and the S&P 500 had its best since July. Futures looked strong and government bond yields also fell Tuesday morning. Time will tell if all this will last. Volatility is more the rule these days, although the Federal Reserve has telegraphed that it will continue to raise interest rates aggressively if inflation remains high. Read live market updates here.
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2. FBI Crypto Warning
US Treasury Secretary Janet Yellen will hold a press conference in the US Treasury Department’s Cash Room in Washington on July 28, 2022.
Jonathan Ernst | Reuters
The SEC’s settlement with Kim Kardashian was not the only warning federal authorities issued Monday about cryptocurrencies. The Treasury Department’s Financial Stability Oversight Council said in a major report on digital assets that unregulated cryptocurrencies could pose a threat to the entire U.S. financial system. Treasury Secretary Janet Yellen urged stronger enforcement of current laws, as well as “appropriate” regulation of assets such as stablecoins. “It is vital that government stakeholders work together to make progress on these recommendations,” Yellen said.
3. Poshmark sells for $1.2 billion
Rafael Henrique | Light Rocket | Getty Images
Kind of new, kind of used, sold for less. Poshmark, the online clothing retailer, has agreed to be acquired by South Korean internet company Naver for approximately $1.2 billion in cash. That works out to $17.90 per share. While that’s a premium compared to Poshmark’s closing price Monday of $15.57, it’s still much lower than its debut price of $42 when the company went public in January 2021. At the time, e-commerce was all the rage as people were largely confined to their homes due to Covid restrictions and fears of contracting the virus. Since then, people and authorities have moved on. The deal will help Naver boost its retail business while expanding Poshmark’s reach. Shares of Poshmark rose more than 10% in premarket trading on Tuesday.
4. Ukraine builds momentum
Ukrainian President Volodomyr Zelenskyy said his country’s troops were continuing to reclaim territory from the fleeing Russian forces, saying “the enemy army is suffering increasing losses”. He also said several new Russian conscripts, whom Vladimir Putin has called up in recent weeks, have already been killed in the battle. In addition, Russia’s routine conscription cycle, which usually starts in early October, has been pushed to November 1, according to British authorities. “The challenges of housing, training, equipping and deploying mobilized and conscript personnel are significant,” the Ministry of Defense wrote on Twitter. “Deficiencies in Russia’s administrative and logistics systems will continue to undermine these efforts.” Read live updates here.
Read more: Ukrainian diplomat tells Musk to fuck off after billionaire infuriated nation with Twitter poll
5. ‘We still have time’
A view of the 74th United Nations General Assembly on September 28, 2019 in New York City.
Kena Betancur | Getty Images News | Getty Images
The United Nations has a warning: The world is on the cusp of a recession that is likely to affect developing countries more than others. If it happens, it will be largely due to continued rate hikes in developed countries, such as the United States, the United Nations Conference on Trade and Development said in a report released Monday. “Interest rate hikes by advanced economies hit the most vulnerable the hardest,” the report said. “Some 90 developing countries have seen their currencies weaken against the dollar this year.” The strengthening dollar may make the United States a safe haven for investors, but it could suck life out of other countries’ economies, experts say. However, the world can still avert a global recession, according to the UN. “We still have time to step back from the brink of recession. Nothing is inevitable. We need to change course,” said UNCTAD Secretary-General Rebeca Grynspan, who advocated a more “pragmatic” economic policy. .
Read more: Credit Suisse remains ‘under pressure’ but analysts wary of Lehman comparison
– Alex Harring, Chelsey Cox, Annie Palmer, Holly Ellyatt and Su-Lin Tan of CNBC contributed to this report.
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