Short & Sweet: Markets Rally After Rate Hike Fears Fade | Apple Beats On Earnings Report | COIN Reports Profit Amid Crypto Correction
Rate Hike Fears Fade As Market Rally’s 🐳
The market saw a nice pop on Thursday as investors finally sat up from their hands after the fear of the fed raising rates has started to subside. Wednesday saw a volatile session heading into FOMC and Jerome Powell did not indicate any potential rate hike in the future. Let’s take a look at how our index’s performed:
The S&P500 saw a small 0.2% rise
The Dow Jones Industrial Average rose 0.8%
The Nasdaq Composite gained 1.5% through the session
To kick off our after hours session reported earnings and posted an impressive beat with the stock seeing a 6% rise on the report.
Q2 EPS = $1.53 vs $1.50 estimated
Q2 Revenue = $90.75B vs $90.33B estimated
The company also announced a buy back for stocks worth around $110B worth of shares and decided to boost quarterly dividends.
Coinbase Reports Profit Amid Crypto Trading Surge, But Faces Regulatory Challenges 🏦
Coinbase Global, the largest US cryptocurrency exchange, posted its second consecutive quarterly profit as crypto trading surged in the first quarter of 2024. However, the stock dropped 4% in after-hours trading. Net income rose to $1.17 billion, and net revenue increased by 115% compared to the year-ago period. The boost came from a revival in digital coin trading due to new bitcoin ETFs and a 68% increase in global crypto trading volume. Coinbase’s transaction revenue reached $1.07 billion, but the value of bitcoin has since fallen from its all-time high.
Coinbase also reported $511 million in non-trading subscriptions and services revenue, a 41% increase from a year ago. However, the company faces regulatory challenges, with the SEC alleging violations of US federal securities laws. Coinbase and its CEO, Brian Armstrong, are fighting these allegations, which could take years to resolve. The firm’s user base has not grown as much as analysts hoped, with monthly transaction users declining 5% from the same period last year.
