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Stock futures flat ahead of Fed moves – Oil rises on China demand and Russian restrictions – Spotify layoffs – Home loan banks lent crypto banks billions – Goldman Sachs to cut asset management investments
Stock futures were flat on Monday as investors eagerly await a potential slowdown from the Federal Reserve of its aggressive stance on interest rates.
Futures tied to the Dow Jones Industrial Average gained 19 points, or 0.06% on Monday, while S&P 500 futures notched 0.03% higher, and Nasdaq 100 rose 0.13%, CNBC reported.
The benchmark US 10-year Treasury Note was at +0.037 to yield at 3.521% as of 8:32 AM EST.
Oil futures rose on Monday with WTI crude up +0.85% and trading at $82.32 per barrel, while Brent crude was up +0.98% and trading at $88.49 a barrel as of 8:33 AM CT on Monday.
Expectation of rising demand from China amid its reopening as the US dollar eased, as well as further restriction on Russian energy flows that are due to begin early next month attributed to climbing oil prices, Yahoo Finance reported.
Spotify announced it will trim 6% of its workforce, about 600 jobs, as well as its chief content and advertising business officer, Dawn Ostroff, will depart as part of a broader reorganization. As of September 30, the company had 9,800 full-time employees, and said it expects to incur about $38.06 Million in severance-related charges, CNBC reported. Shares in Spotify rose 3.5% in premarket trading on Monday.
A new report shows that home loan banks lent billions of dollars to crypto banks. Signature Bank reportedly borrowed $10 billion and Silvergate reportedly borrowed $3.6 billion from the United States Federal Home Loan Banks System (FHLB), a consortium of 11 regional banks across the United States that provide funds to other banks and lenders, a January 21 Wall Street Journal report showed. The loans were made to mitigate the effects of a surge in withdrawals, CoinTelegraph reported.
After Goldman Sachs Group Inc reported a larger-than-expected 69% drop in fourth-quarter profit to the tune of $1.67 billion in full-year net loss from its platform solutions unit, as well as its wealth management unit dropping its revenue by 27%, which sent its stock down, the company announced it will be making significant cuts to the $59 billion of alternative investments that impacted its earnings, FOXBusiness reported.
The company will divest its positions over the next few years and replace some of those funds on its balance sheet with external capital, according to Goldman Sachs chief investment officer of asset and wealth management Julian Salisbury.
