Social media

Stock Market Today: Stocks Soar; Snap Warning slams social media

Updated at 4:15 p.m. ET

Stocks ended sharply higher on Friday, despite one of the longest selloffs on record in the Treasuries market, as investors continue to talk about the impact of Federal Reserve rate hikes on an economy fragile world.

Benchmark 10-year Treasury yields hit a new fourteen-year high of 4.297% at the start of New York trading, extending one of the longest stretches of weekly declines since 1984 that added more than 28 basis points to paper in just over five trading days.

Yields fell to 4.22% after the market opened, however, providing solid gains on all three Wall Street indices, putting them on pace for a modest weekly gain.

The Dow Jones Industrial Average rose 748 points, or 2.47%, to 31,082, while the S&P500 gained 2.37%. The technology-focused Nasdaq rose 2.31%.

A better than expected reading for the weekly unemployment benefit claims yesterday, which fell from 12,000 to around 214,000, against more than 10 million vacancies in the world’s largest economy, cements the case for a fifth giant Fed rate hike in December, with the chances of ‘a 75 basis point move a virtual lock next month to Washington, according to CME Group’s FedWatch.

“The Fed meeting is still a week away, but here U.S. money markets have for the first time started pricing a 5% terminal rate for the effective federal funds rate,” the ING analyst said. Padhraic Garvey. “Certainly the market is still evaluating whether the Fed is looking to cuts later next year, but Fed officials are against that idea.”

The rise in yields, which took 2-year bonds to 4.622%, some 2.8% higher than the dividend yield on the S&P 500 and the biggest gap since 2007 – adds more weight to the US dollar index, which rose 0.6% against its global peers in New York, trading at 113.545 as the Shares in Asia and Europe were trading in the red after Thursday’s weaker close on Wall Street.

A drop in tech stocks added to market woes, following a warning over global advertising spending by messaging app maker Snap Inc.’s companies SNAP, with social media shares falling sharply in pre-market exchanges.

Snap said revenue for the three months ending September rose 6% from a year ago to $1.13 billion, but marked the slowest rate of growth since the company went public in 2017.

Adjusted earnings of 8 cents per share beat Street’s forecast, but the current quarter’s outlook has sent stocks tumbling and spilling over into the social media space, bringing more than $40 billion in market value to investors. rivals such as Twitter. (TWTR) pinterest (PINS) and meta-platforms (META) .

Snap shares fell 28.1% to $7.76 apiece, extending its year-to-date decline to around 84%.

Verizon Communications (VZ) fell 4.5% after posting better-than-expected second-quarter results, but added fewer new subscribers to its monthly plans following a price hike early in the summer.

Twitter shares fell 4.8% as the impact of Snap’s ad spend warning rippled through social media stocks and Bloomberg reported that the group’s planned takeover by Elon Musk could be subject to a national security review.

American airlines (AAL) Shares gained 1.9% after a better-than-expected third-quarter update and strong near-term outlook from the nation’s largest carrier.

Overnight in Asia, the yen rose above 1.50 against the US dollar for a second straight session, trading as low as 151.53 – the lowest in 32 years – as the Ministry of Finance warned of “harsh” treatment for market speculators, but stopped before direct intervention.

In Europe, Britain’s political crisis continued after the resignation of Prime Minister Liz Truss on Thursday and the start of a new leadership race among Conservative Party members – one that appears to include former Prime Minister Boris Johnson. .

The regional Stoxx 600 index fell 1.43% in Frankfurt, while Britain’s FTSE 100 fell 0.7% in London.

In Asia, the Nikkei 225 closed down 0.43% in Tokyo, while the benchmark MSCI ex-Japan index was last seen down 0.85% and at its lowest level in two and a half years before the final hours of trading.