Trading week of September 18 – September 24

Posted on: September 19th, 2022
By: Tadeo Martinez

News

Dow drops 300 points after FedEx warns, Wall Street heads for big weekly loss; $FDX plunges 23%

Transport stocks are seen as indicators of the market and economy in general.

The weakness comes mainly to Asia.

Inflation is still affecting the economy.

FedEx shares sink after company cites weakening global demand

FedEx shares fell down more than 21%. This dropped meant an $11 billion loss to the company.

Subramaniam in an interview at Mad Money said he expects a worldwide recession.

The DOW Jones Industrial Average fell by around 1500 points this week.

With such lower than expected earnings, FedEx withdrew their forecast for the year and foresees a volatile market.

Adobe shares plunge on deal to acquire design platform Figma for $20 billion

The public didn’t respond well to this. The shares fell by 17%, the lowest dip since 2010.

The last time Figma was valued, it was at $10 billion

Dow tumbles 1,200 points for worst day since June 2020 after hot inflation report

A hotter-than-expected inflation report reassures the sentiment of a strong rate hike at the next Fed meeting.

Only 5 stocks ended positive. Tech stocks were hit the hardest.

Inflation rose 0.6% on a month-to-month basis (core inflation).

Growth stocks were hit hard.

Inflation rose 0.1% in August even with sharp drop in gas prices

A rise in shelter and food offsets the drop in gas prices.

Everyone now sees a full possibility of a 75 basis point rate hike and there’s a 10% sentiment of a full basis point.

Food, transportation and rent are the biggest cause of inflation right now.

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