Last month saw the Reddit army of retail traders blow Wall Street and its hedge funds out of the
Recent inflation data in the US markets shows a slower rise. The core inflation metrics for August were only up by 0.1% compared to July. In other words, August has recorded the slowest monthly inflation rate gain since the beginning of the year.
Reduced travel is likely the main reason for the slower rise in consumer prices, but it is certainly starting to feel like the Fed was right. Many hope that 2022 will ultimately prove that inflation was indeed merely transitory.
Meanwhile, there is yet another quarter to get through before we have any real answers. For a month that’s historically been slow, September is sure full of surprises. Here’s how, as a result of the inflation data, some shares rose while others tumbled.
Microsoft to Initiate Share Buyback
This week, Microsoft announced that it would begin a share buyback program and raise its quarterly dividend by 11%. The tech giant has not set an expiration date for the program; however, it set a budget of up to $60 billion. The goal is to increase the dividend by $0.06 this upcoming quarter. With the recent inflation data indicating a relatively healthy market, Microsoft couldn’t have picked a better time.
Facebook Shares Tumble in light WSJ’s expose
The WSJ has published an expose of Facebook that brings to light the negative effect of social media on young teenagers. Reportedly, internal company studies found that Instagram had a negative impact on the mental health of teenagers. The news will undoubtedly force Zuckerberg to put a pin in his plan to develop an Instagram for kids. Lawmakers across both parties and chambers of Congress are demanding answers from Facebook
Virgin Galactic Shares Experience a Drop
Richard Branson’s space tourism has generated a lot of hype as Virgin Galactic became the first company in the ‘billionaire space race’ to launch humans into suborbital space. However, the company’s shares recently took a tumble when it announced the postponement of its next flight. Reportedly, there was a manufacturing defect.
Booster Shots Data Boost Moderna Shares Up
One of the COVID-19 vaccine producers, Moderna, released new data that supports booster shots. The study shows that people who have gotten the jab more recently are less likely to become infected with Covid-19. To clarify, it appears that immunity wanes over time. However, the FDA has declined to make their position known as they are still verifying and analyzing the data. The American drug maker was up 0.7% in extended trading.
Alibaba Shares Slide as China Plans a Breakup
The Ant Group (formerly known as Alipay) has once again become the target of Chinese authorities. To tighten control on big businesses, Beijing is looking to split the Ant Group into two entities. Hence, one of the entities would handle lending operations while the other would resume standard operations. The Ant Group, which boasts over a billion users, is presumably targeted because of Jack Ma. The co-founder of Ant Group and Alibaba suggested that Chinese regulators deter innovation.
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