1) Fed’s minutes show multiple 50bp rate hikes coming
The Federal Reserve minutes released Wednesday indicated that the central bank is prepared to move on with multiple 50bps interest rate hikes to bring down inflation.
“Most participants judged that 50 basis point increases in the target range would likely be appropriate at the next couple of meetings,” stated the minutes.
Also, the minutes noted that policy may have to move past a “neutral” stance in which it is neither supportive nor restrictive of growth.
2) Elon Musk reiterates his commitment on Twitter deal
In a filing Wednesday, Tesla CEO Elon Musk reiterated his commitment to completing the $44 billion deal for Twitter. He also increased his personal financial commitment to the takeover to $33.5 billion and is now working on other funding.
The share price of Twitter rose nearly 4% to $37.16 per share on Wednesday and climbed 5.62% to $39.25 per share in after hours trading.
3) Nvidia falls nearly 7% on weaker guideline for 2Q22
Nvidia reported better-than-expected fiscal first-quarter earnings on Wednesday as EPS came in at $1.36 vs. $1.29 expected by Refinitiv. Meanwhile, revenue was $8.29 billion vs. $8.11 billion expected.
However, the company guided that the revenue for the current quarter would be $8.1 billion, which is lower than broker estimates of $8.54 billion.
Nvidia CEO Jensen Huang said that the company was facing a challenging macro environment, while its operating expenses increased 35% year-over-year to $1.6 billion on a non-GAAP basis.
The company stated that it will slow down hiring pace and control expenses.
The share price of Nvidia fell 6.83% in after hours trading.
