Thursday was a strong showing for the stock market after Fed minutes showed signs of a possible slow down in rate hikes in the future. The equity market remains steady with all major indices in green territory, moving the week ahead with a likely green closing after seven weekly declines.
Investors largely attributed the two-day rally to the less aggressive Fed minutes stance. The bond market is also pricing fewer rate hikes as the two-year Treasury yield had fallen to 2.49% from its peak of 2.76% in early May.
Still, Pika World believes that there is no lack of headwinds, and the scale could tip anytime again. So with that, Pika World closes some trading positions in Nvidia and Facebook in the previous tiny accumulation after a significant decline in their shares.
🎉Alibaba: A blue sky with milky clouds🌴
It was a sigh of relief for investors as the sales were less disastrous than thought. Revenue came in at $32.2 billion, hitting the $30.8 billion expectation. This is enough to send Alibaba shares higher by more than 10%. It is indeed a reversal as the share price had fallen by about 56% for the past 12 months.
The sold off was built on the premise that Covid’s lockdown in China would drag consumer spending as energy prices soar. However, while supply chains and consumer sentiments remained challenging, Alibaba has been able to build a “value proposition”, as said by its CEO, Daniel Zhang.
Pika World believes things are moving in the right direction for the company. While we remain vested in the counter, the lack of an outlook seems undesirable but understandable. After all, there are fewer visibilities and more uncertainties again. So let’s monitor the health of Alibaba till the following earning report.
More Stories
🚀It’s time for a re-assessment; then came Nvidia’s boost.🚀
A flip-flop markets into earnings season
Nvidia pushes the market to roar back.