The first stock market ever was established over 400 years ago in Amsterdam in 1602 by the Dutch East India Company (VOC). It was the world's first publicly traded company and the first to issue stock and bonds to the general public. Investors could buy shares of the company to finance its trading expeditions, with profits returned to shareholders as dividends. This innovation laid the foundation for modern stock markets and investing as we know it today.
Market Wrap
U.S. stock markets experienced a modest decline following the Federal Reserve's decision to maintain the federal funds rate at its current level of 4.3%.
The Federal Reserve's decision to pause further rate cuts was influenced by ongoing concerns about inflation and the desire to assess the cumulative effects of previous monetary policy adjustments. Fed Chair Jerome Powell emphasized the importance of monitoring economic data, particularly inflation and labor market dynamics, before considering future rate changes.
In the political arena, President Donald Trump criticized the Federal Reserve's decision, accusing it of failing to control inflation and pledging to address the issue through measures such as increased energy production, deregulation, and boosting manufacturing.
Additionally, the administration's recent proposal to offer buyouts to federal employees as part of an effort to reduce the civil service workforce has raised concerns about potential impacts on government operations.
Nvidia's stock fell 4.3% following reports that U.S. officials are considering additional restrictions on the sale of Nvidia chips to China. This potential policy change raised concerns about Nvidia's access to a significant market segment.
Microsoft's stock declined in after-hours trading despite reporting strong fiscal Q2 results with a 12% year-over-year revenue increase to $69.6 billion. Growth was driven by a 31% rise in Azure and other cloud services revenue, but concerns about potential data breaches may have impacted investor sentiment.
Meta Platforms' stock increased 2% in after-hours trading after reporting a 21% rise in Q4 revenue to $48.39 billion. Growth was attributed to higher ad revenue and advancements in AI, with CEO Mark Zuckerberg forecasting expanded use of Meta AI.
Tesla's stock rose 4% in after-hours trading after reporting 495,570 vehicle deliveries in Q4 and outlining plans for a paid self-driving service launch in 2025. Despite missing revenue expectations, CEO Elon Musk emphasized future growth driven by AI and autonomous technology.
ASML's U.S.-listed shares rose 4.3% after reporting fourth-quarter bookings of €7.09 billion, surpassing analysts' expectations of about €4 billion. The strong performance was driven by increased demand in the semiconductor industry, particularly from AI-related growth.
T-Mobile US shares jumped 6.3% after reporting fourth-quarter earnings of $2.57 per share and revenue of $21.87 billion, both exceeding analysts' expectations. The company added 903,000 postpaid phone subscribers, outperforming forecasts.
Alibaba's U.S.-listed shares rose 0.7% after unveiling its latest AI model, Qwen 2.5 Max, which it claims outperforms leading models from competitors. The development boosted investor confidence in Alibaba's AI capabilities.
Starbucks shares increased by 8.1% after the company reported fiscal first-quarter earnings of 69 cents per share, beating analysts' expectations. Despite a decline in same-store sales, the company highlighted positive responses to its 'Back to Starbucks' initiatives.
F5 Networks' stock surged 11% after exceeding analysts' expectations for fiscal first-quarter earnings and raising its revenue growth outlook for 2025 from 4%-5% to 6%-7%.
LendingClub's shares tumbled 14% after the company reported a significant increase in its provision for credit losses, raising concerns about credit risk management. The provision rose to $63.2 million in the fourth quarter, a 51% increase from a year earlier.
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