5 things to know before the stock market opens Thursday – CNBC
Federal Reserve Board Chairman Jerome Powell leaves after a news conference following the announcement that the Federal Reserve raised interest rates by half a percentage point, at the Federal Reserve Building in Washington, December 14, 2022.
Evelyn Hockstein | Reuters
Here are the most important news items that investors need to start their trading day:
1. The hawks swoop in
Investors didn’t hear what they wanted from the Federal Reserve on Wednesday afternoon, as stocks sold off, potentially creating negative momentum for Thursday’s session, as well. “Historical experience cautions strongly against prematurely loosening policy. I wouldn’t see us considering rate cuts until the committee is confident that inflation is moving down to 2% in a sustained way,” Fed Chairman Jerome Powell said Wednesday. While the Fed delivered its expected half-percentage-point rate hike, it also boosted its rate target for next year to 5.1%. Right now it’s at a 15-year high of 4.25% to 4.5%. “The market is going to be handicapped by Fed policy for some time longer,” said Sylvia Jablonski, CEO at Defiance ETFs. Read live markets updates here.
Read more: Bank of England raises key rate by half a percentage point
2. Musk sells more Tesla shares
Elon Musk said Friday that SpaceX cannot continue fund Starlink terminals in Ukraine “indefinitely” in light of the cost. However, Musk, who is also CEO of electric car company Tesla, he said Saturday that SpaceX will keep funding the Ukrainian government “for free” even though Starlink is “still losing money.”
Adrees Latif | Reuters
Elon Musk sold another large chunk of shares in Tesla this week, as the billionaire CEO continues to focus a great deal on Twitter, which he took over in October to the tune of $44 billion. While under Musk’s control, Twitter has struggled to maintain revenue streams as the volatility and controversy surrounding the company scare off many advertisers. Tesla shares, meanwhile, have fallen about 30% since Musk acquired Twitter, and they’re down 55% for the year as of Wednesday’s close. And Musk, whose wealth is heavily tied to Tesla stock, has lost the title of richest person in the world.
3. Free Covid tests on the way
New government-issued COVID-19 Antigen Rapid test kits sit on the counter for sale at Rock Canyon Pharmacy on February 8, 2022 in Provo, Utah.
George Frey | Getty Images
The Biden administration is getting back to sending out free Covid tests as cases and hospitalizations …….