Zoom stock right down on mixed Wall Street – E24

The picture was mixed for the three major indices on Wall Street on Tuesday afternoon, but now stocks are pointing lower.

This is what it looks like around 6:40 PM:

• The Dow Jones Industrial Average fell 0.39 percent
• The Nasdaq Technology Index rose 0.15 percent
• The broad S&P 500 index fell 0.1 percent

The S&P 500 and Dow Jones on Monday had their worst trading day in nearly two months. The Nasdaq also fell significantly.

Eric Bruce, chief strategist at Nordea, thinks the 10-year US government bond rate, which crept on Monday to more than three per cent, could explain part of the stock market Monday. “The Ten-Year-Old Girl” is about the same on a Tuesday afternoon.

The ten-year-old is often referred to as “the most important in the world” because it influences interest rates and financial markets around the world. US 10-year bonds are the most popular government bonds in the world, and are considered a virtually risk-free investment due to the low probability of US bankruptcy.

Higher long-term interest rates are often a negative for tech companies, because they are priced based on future earnings, and higher interest rates make promises of future earnings less valuable. Therefore, the ten-year-old and the Nasdaq often move in the opposite direction.

Zoom arrow is declining

On the company side, Zoom stock fell 14.35 percent after the company, in its quarterly report, cut its dividend and revenue guidance for 2022, according to Yahoo Finance.

Twitter shares fell 5.95 percent on the day the Washington Post reported an explosive complaint from the former chief of security. For its part, Twitter believes the complaint is riddled with inaccurate information.

Cybersecurity firm Palo Alto Networks rose just over 11.6 percent, after the company reported positive quarterly numbers, while at the same time announcing plans for a stock split.

JD.com rose 1.2 percent at the open as the company beat Wall Street estimates for second-quarter earnings. The Covid lockdowns in China were supposed to help increase online shopping in the quarter, according to Yahoo Finance.

Waiting for an important letter

The eyes of many investors are now focused on what will happen in the small town of Jackson, Wyoming towards the end of the week.

Central Bank Governor Jerome Powell will speak there on Friday, and there is great enthusiasm about the signals he will give.

Following the comments of several central bank representatives, many market participants believe that the central bank will continue to tighten the sluggish economy with more rate hikes.

However, some analysts see the possibility that Fed Chairman Powell will surprise and deliver a “relaxing” speech, according to Bloomberg.

– Right now, global sentiment is frightening and unstable, said Richard Hunter, head of marketing at Interactive Investor, according to Bloomberg.

He adds that there is little reason to be optimistic on the near horizon, as no rays of economic light have properly settled into the market.

Economists vacillate between a 0.5 and 0.75 percentage point rate hike at the central bank’s September meeting, but according to a Reuters poll, most expect a 0.5 percentage point rate hike, according to FedWatch.