After a key monetary policy decision by the Fed, the markets reacted negatively to possible interest rate hikes in the next two years.— More on that in the “Overall Market” section.
Beyond the overall market, an electric truck maker intends to appeal USPS’s award decision. Meanwhile, “meme stock” investors have failed to short squeeze a stock. — More on that in the “What’s Up?” and “What’s Down?” sections.
By the way, did you know that a Chinese eCommerce app dethroned Amazon? — More on that in the “Water Cooler” section.
But, first, here is a recap of what happened in the market yesterday:
- U.S. markets: The stock market ended in the red zone on Wednesday. Scroll down to the “Overall Market” section to read more.
- Cryptocurrency: Bitcoin’s price decreased to $38K per coin.
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Interest Rate Hikes
The stock market ended in the red zone on Wednesday.
After a key monetary policy decision from the Federal Reserve, the markets forecasted interest rate hikes in the next two years. During the Fed Chair Jerome Powell’s press conference, the Fed stated that seven of its eighteen officials expected an interest rate hike taking place in late 2022. For now, however, the Fed would keep its quantitative easing with asset purchases. The market took it as a sign that the go-go upward trend would come to an end soon.
Not Over Yet
So, what happened?
Shares of Workhorse (Ticker: WKHS) were up by more than 5% on Wednesday. Although the electric truck maker lost a massive $482 million initial order from USPS months ago, news points that Workhorse intends to appeal USPS’s award of contract. With the appeal, the company expects to win back a part or all of the $6 billion in revenue over time and 10 years of more truck orders from USPS. It seems that Workhorse is not giving up so easily.
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So what happened?
Shares of BlackBerry (Ticker: BB) were down by more than 7% on Wednesday. Recently, the once smartphone maker now electric car software company’s stock has become part of the so-called “meme stock.” However, retail investors’ attempts to short squeeze the stock are failing successively. It seems that even though BlackBerry has the potential to squeeze, it would require a massive force to drive the price up.
So what happened?
Chinese shopping app Shein overtook Amazon (Ticker: AMZN) as the #1 eCommerce app in the United States. Shein is a fast-fashion eCommerce that offers low prices and massive catalogs of trending clothes for Gen Z. Although the company is still secretive about its business, suppliers, and factory conditions, Shein reported a whopping $10 billion revenue in 2020. For comparison, it is more than Zara’s online store sales. Moreover, Shein shares in-app search data with suppliers, making it extremely easy for Shein to identify new shopping trends.
It seems that real-time fashion is the new business model focusing on Gen Z.
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