What happens on Wall Street between Zoom, oil and the Fed
Zoom slows down after pandemic boom, Robinhood drops. WTI oil also lost value, while investors await the start of tapering from the Fed. Here are the latest news on Wall Street
In the pre-market of the US stock exchange, the stock of Zoom Video Communications, the well-known teleconferencing services company, lost 12.5 percent.
ZOOM SLOWS DOWN
Yesterday, the company released data on revenues in the third quarter of 2021: although they were over a billion dollars, Zoom is already beginning to lose momentum after the boom in uses in the months of lockdown, between smart working and distance learning.
According to analysts, Zoom will try to react to the slowdown in growth by investing in Zoom Phone, its cloud calling platform designed for businesses.
THE FALL OF ROBINHOOD
Also losing value in the pre-market on Wall Street (-3.3 percent) is the stock of Robinhood , the US financial services company that developed the homonymous investment app without commissions.
Robinhood – as reconstructed by the Radiocor agency of the Sole 24 Ore – had already sold about 4 percent yesterday after the news that PayPal could launch its own trading platform. But also weigh the words of Gary Gensler, the president of the SEC (the American federal body that monitors the stock exchange), who said that the practice of payment for the flow of orders – that is the compensation received by the broker for forwarding the orders received by customers for execution – may be prohibited.
HOW DO THE INDEXES AT WALL STREET
Futures contracts on the Dow Jones index, the best known of the New York Stock Exchange, lost 17 points, equal to -0.05 per cent; on the S&P 500 index, they fell by 0.04 percent (1.95 points).
On the Nasdaq market, on the other hand, futures fell by 0.02 percent (3.5 points).
WTI PETROLEUM DOWN
West Texas Intermediate oil, the reference contract for the American market, fell by 1.13 percent: the damage of Hurricane Ida in Florida and the slowdown in manufacturing activity in China in August compared to the month precedent, which suggest a reduction in the demand for crude oil.
THE WORDS OF POWELL (FED)
Radiocor writes that there is some optimism on the Wall Street stock exchange after the recent statements by Jerome Powell – the chairman of the Federal Reserve, the central bank of the United States – on the approach of the tapering phase. This term refers to the gradual reduction of the extraordinary monetary policy measures introduced by central banks to support economic growth.
Powell said tapering could start as early as the end of 2021, that inflation will fall but that interest rates are not expected to rise any time soon. However, the uncertainty of the Delta variant of the coronavirus weighs on the programming, more contagious. Powell spoke of a recovering labor market, although the unemployment rate is still very high.
Radiocor explains that investors are then awaiting the report with US employment data in August, which is expected to be released this Friday: if the numbers on the jobs created are satisfactory, there will be pressure for a start of tapering already. since October; otherwise, we will have to wait.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/wall-street-cosa-succede-zoom-petrolio-wti-tapering/ on Tue, 31 Aug 2021 14:07:12 +0000.