Shutterstock
Stocks slide as the Federal Reserve signals more rate hikes – Housing and jobless report – A number of celebrities and athletes sued in FTX lawsuit – Thousands of Starbucks workers go on strike
Stocks took a drop on Thursday amid signals from the Federal Reserve that it will maintain its current hawkish track of raising interest rates to battle inflation, though possibly at a slower pace.
St. Louis Fed President James Bullard made comments that interest rates needed to rise further, somewhere in the 5%-7% range, Yahoo! Finance reported.
“To attain a sufficiently restrictive level, the policy rate will need to be increased further,” Bullard said.
Bullard’s comments came a day after San Francisco Fed President Mary Daly said a pause in rate hikes was “off the table.”
In early trading on Thursday, the S&P 500 dipped more than 1.1%, while the Dow Jones Industrial Average lost 260 points, or 0.8%, and the NASDAQ Composite tumbled 1.4%, Yahoo reported.
The benchmark 10-year Treasury yield dropped 4 basis points to 3.75%.
Gold declined by 0.9% to $1,760.50 per ounce. Brent crude, the international oil benchmark, lost 1.4% to $91.60, while West Texas Intermediate crude fell 1.9% to $84 per barrel. Bitcoin sank 0.4% to $16,476.11, Yahoo finance reported.
Weekly jobless claims fell by 4,000 to 222,000, while continuing claims increased by 13,000 to 1.507 million, according to the latest report from the US Bureau of Labor Statistics for the week ending November 12, Reuters reported. Layoffs remained low despite a recent surge of job cuts in the technology sector.
Housing starts also fell by 4.2% in October, while permits fell 2.4%.
A slew of celebrities and high-profile athletes have been named in a class-action lawsuit filed against cryptocurrency exchange platform FTX and its founder Sam Bankman-Fried, Sports Illustrated reported.
Among the big-name athletes are Tom Brady, Stephen Curry, Shohei Ohtani and Shaquille O’Neal. Celebrities named in the suit include comedian Larry David, and Brady’s ex-wife Gisele Bündchen, and ‘Shark Tank’ investor Kevin O’Leary, to name a few, the New York Post reported.
The lawsuit claims the individuals named in the suit: “either controlled, promoted, assisted in, and actively participated” in the alleged scheme where they “aggressively marketed” FTX.
The suit was filed in the U.S. District Court for the Southern District of Florida, and alleges customers sustained $11 billion in damages.
On red cup day, one of Starbucks busiest days, over a thousand employees went on strike, with members of the Starbucks Workers Union picketing outside more than a hundred stores across the country.
Red cup day is when the coffee giant hands out limited-edition holiday reusable cups. Customers line up at dawn to get their hands on these decorated cops which are considered collector’s items. It’s one of the most profitable days for the company. The walkout is intended to motivate Starbucks to bargain with workers as the two sides try to hammer out new contracts, NPR reported.
