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Stock futures trade higher on Wednesday while Tesla and Apple plunge – Famed investor says US will enter recession in 2023 – Federal Reserve warns banks over crypto – FTX’s Sam Bankman-Fried pleads not guilty
Stock futures traded higher on Wednesday, with the Dow Jones industrial average rising 55 points, or 0.17%, while the S&P 500 notched up 0.23%, and the technology-heavy Nasdaq-100 futures climbed by 0.44%, CNBC reported.
The 10-year Treasury yield fell 10 basis points to 3.69%, while the 2-year yield dropped 6 basis points to 4.35%, Seeking Alpha reported.
Bitcoin fell 0.1% to US$16,679 early Wednesday, and Ether was little changed in mixed Wednesday morning trading in Asia for the top 10 non-stablecoin cryptocurrencies, while Dogecoin led the losers with a drop of 1.4% to US$0.07, Yahoo Finance reported.
On Tuesday, Tesla shares plummeted 12% after a report that the company fell short of analyst expectations on deliveries in Q4, while Apple fell over 3% as concerns about iPhone demand resurfaced, CNBC reported. Apple also recently notified several suppliers to build fewer parts for some of its most popular devices, including AirPods, the Apple Watches, and MacBooks.
Apple’s market Also fell below $2 trillion in trading on Tuesday, the first time since early 2021, and exactly one year to the day after the company hit the milestone of being the first public tech company to be valued at $3 trillion, CNN reported. All totaled, Apple lost $1 trillion in market value in 2022.
Famed investor Michael Burry, known for being among the first investors to predict and profit from the 2007-2010 subprime mortgage crisis, and who was portrayed by actor Christian Bale in the movie The Big Short, is predicting a US recession “by any definition,” CBS and FOXBusiness reported.
“Inflation peaked,” Burry wrote in a tweet. “But it is not the last peak of this cycle. We are likely to see CPI [consumer price index] lower, possibly negative in 2H 2023, and the US in recession by any definition,” he continued. “Fed will cut and government will stimulate. And we will have another inflation spike. It’s not hard.”
The Federal Reserve issued a statement on crypto-asset risks to banking organizations on Tuesday, warning of the risk to banking organizations involved in crypto-assets and the crypto-asset sector on the whole, given the significant volatility and vulnerabilities over the past year, the press release said.
The Fed said: “The agencies will continue to closely monitor crypto-asset-related exposures of banking organizations, and, as warranted, will issue additional statements related to engagement by banking organizations in crypto-asset related activities.”
Sam Bankman-Fried, the co-founder of failed cryptocurrency exchange FTX, appeared before a U.S. federal court in the Southern District of New York on Tuesday. He pleaded not guilty to eight different counts of wire fraud, securities fraud, and conspiracy, Yahoo reported. Federal prosecutors allege Bankman-Fried transferred billions in customer assets to his trading firm, Alameda Research. If convicted, Bankman-Fried faces up to 115 years in prison. The trial date is set for October 2, 2023.
