Here are five things you should know for Thursday, January 6:
1. – Stocks are set to open silently after heavy losses
US stock futures were mixed to lower early Thursday morning as global stocks faced pressure following the worst one-day drop for the tech-heavy Nasdaq since last February, and the Dow Jones Industrial Average posted its first three-point drop of the year amid expectations faster development. Timeline of interest rate hikes.
Futures linked to the Dow Jones Industrial Average indicate an opening gain of 18 points, while contracts related to the S&P 500 are priced down 3.5 points. Futures linked to the technology-focused Nasdaq Composite Index are pointing down 35.5 points in early trading as benchmark 10-year Treasury yields are up slightly at 1.732%.
On Wednesday, the Nasdaq closed more than 500 points, or 3.3%, its biggest drop since February 2021 and the worst start to a calendar year since 2008, when it fell 5.6% in the first three trading sessions.
The Nasdaq-100, which comprises of the largest companies on the Nasdaq, is now seeing a year-to-date drop of 3.36%, which is also the largest drop to begin in the first three days of the year since the global financial crisis.
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The Dow ended Wednesday down 392 points, or 1.07%, to 36,407, while the S&P 500 was down 1.94%.
Expectations that the Federal Reserve may act sooner than expected to start tightening monetary policy by raising benchmark interest rates has prompted what market watchers call a “rotation” from technology stocks to sectors and companies that do better in a higher interest rate environment.
Economists and investors have been resetting their expectations about how the Fed will rein in inflation, well above the Fed’s annual target of 2%, and what that will mean for businesses that have relied on low interest rates through the pandemic.
2. – Cryptocurrencies in the form of Bitcoin chips drop below $46,000
Top cryptocurrencies, including Bitcoin, Ether, Solana, Cardano, and XRP, posted massive losses on Thursday as Bitcoin plunged as low as $42,700 after losing a key support level, causing a sell-off in the broader cryptocurrency market.
Among the top 10 cryptocurrencies by market capitalization, Ethereum competitors Avalanche, Terra and Solana tokens — the so-called SoLunAvax trade — are down as much as 12% in the past 24 hours, according to Coindesk. Polkadot, another Ethereum competitor, saw its token drop by 14% before seeing a slight recovery in Asian hours on Thursday.
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The tokens of these networks are up several hundred percent in the past 12 months, primarily as investors search for blockchain alternatives outside of Ethereum.
Over the past 24 hours, more than $812 million worth of cryptocurrency futures have liquidated as Bitcoin breached the $46,000 support level and fell to $43,000, according to data from Coinglass.
Separately, $14 billion in cryptocurrency was stolen in 2021, thanks to the rise of decentralized finance (DeFi) platforms, according to new data from blockchain analytics firm Chainalysis, registering 79% over the previous year.
3 – The Federal Reserve hints at a faster pace of rate increases
At its December meeting, the Federal Reserve began discussing plans to reduce the amount of bonds on its balance sheet, with FOMC members saying the reduction in the central bank’s bond holdings will begin sometime after it begins raising interest rates, according to minutes released Wednesday.
While officials did not say when the Fed would begin to roll out the roughly $8.3 trillion in Treasuries and mortgage-backed securities it currently holds, minutes from the meeting indicated that the process could begin within the next several months.
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“Nearly all participants agreed that it would likely be appropriate to begin the balance sheet restoration process at some point after the first increase in the target range for the federal funds rate,” reads the meeting summary.
The market is currently expecting the Fed to start raising the benchmark interest rate in March, which means that the balance sheet reduction could start before the summer.
The minutes also noted that once the process has begun, “the appropriate pace of balance sheet run-off is likely to be faster than during the previous normalization cycle” in October 2017.
4 – Nike sues Lululemon for infringing the mirror’s patent
nike (From) – Get a Nike, Inc. report. from class B On Wednesday she filed a lawsuit alleging Lululemon (lulu) – Get Lululemon Athletica’s report The mirror home fitness device and apps infringe the athletic shoe company’s patent collection.
Nike says the Mirror Home Gym and apps use technology the athletic shoe giant has invented and patented, including a device that motivates users to exercise, monitors their heart rate and collects data on their activity, among other functions, according to the lawsuit filed in the Southern District of New York. The lawsuit was first reported by The Wall Street Journal.
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Nike said it sent a notice to Vancouver-based Lululemon on November 3, citing a list of patents it holds that are allegedly used by the Mirror device and its apps. A response from Lululemon’s attorney, presented as a Nike exhibit, said that after reviewing Nike’s letter, the company did not believe the Mirror or its apps were infringing patents.
Nike did not immediately respond to a request for comment.
5 – BMW unveils a new color-changing car
The difficult decision of deciding what color your new car or truck should be can be a thing of the past.
In one of the most talked about moments at CES 2022, German automaker BMW (BMW) On Wednesday it unveiled a color-changing coating technology that can make drivers change the color of their car with the push of a button.
E-ink, the same digital paper technology used in e-readers like the Kindle or Kobo, is wrapped around the car to make it go from black to white and back again.
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“The white surface reflects much more sunlight than black,” BMW said in a press release. “Implicitly, the heating of the vehicle and passenger compartment as a result of strong sunlight and high outside temperatures can be reduced by changing the exterior color to a lighter colour.”
“This concept car with BMW is a stunning demonstration of how the surfaces of the future are transformed to personalize, personalize and provide information,” said Tim O’Malley, Assistant Vice President of BMW’s US Regional Business Unit.