Streaming service Netflix rose on the New York Stock Exchange on Wednesday. The company announced that it will partner with Microsoft on its advertised cheaper subscription model with ads. The technical group will be responsible for both the technology and the selling of ads. This allows the service to get up and running faster, which is pleasing to investors because Netflix can quickly tap into the extra income. Netflix rose 1.2 percent.
In general, the mood on Wall Street was not positive. Investors are concerned about rising inflation in the US, which rose further in June. This increased the risk of the Federal Reserve raising interest rates again. For example, Rafael Bostic, president of the Federal Reserve Bank of Atlanta, refused to rule out a one percentage point rate hike. Due to the strong interest rate hike, there is a higher chance of a recession in the US.
Moreover, some investors choose to deposit money in a bank because the interest is earned with little risk. This money is no longer available in the stock market, as a result of which share prices fall.
The Federal Reserve also said in its beige book that there are signs of weak inflation. For example, the demand for some products falls, which causes the price to fall again. However, these same signs can also indicate a higher chance of stagnation.
The Dow Jones Industrial Average fell 0.7 percent to 30,772.79 points. The Standard & Poor’s 500 Index lost 0.5 percent to 3,801.78 points. The Nasdaq Technology Exchange recently fell 0.2 percent to 11,247.58 points.
Uber shares fell 0.3 percent. The taxi company has been sued by hundreds of female customers in the United States. These women were harassed, assaulted and raped by Uber drivers. According to the indictment, Uber has been aware of this since 2014, but hasn’t done enough. In recent days, Uber has also appeared negatively in the news due to the leaking of Uber files. From these internal documents, it became clear that the company deliberately violated the rules in many countries.
Twitter won by about 8%. The company is suing the world’s richest man, Elon Musk, for refusing to buy the messaging service. Delta Air Lines shares fell 4.5 percent after the quarterly figures were released. The airline posted more sales than expected, but higher fuel costs weighed on profits.
The euro was worth $1.0055, versus $1.0083 at the closing bell in Europe. The price of a barrel of US oil rose 0.3 percent to $96.10. The price of Brent oil remained roughly the same at $99.48 a barrel.
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