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US stock market rebound continues – Facebook & Robinhood in focus

Picture of Drew Meredith, CFP
Drew Meredith, CFP
Picture of Drew Meredith, CFP

Drew Meredith, CFP

Drew Meredith is one of the founders of Wattle Partners. He is an experienced financial and investment adviser with expertise in self-managed superannuation funds, superannuation strategies, investment analysis and portfolio construction. Drew is a Partner at Wattle Partners.
More analysis

US stock markets staged a strong recovery overnight with the tech sector pushing the Nasdaq over 1% higher. Both the S&P 500 and Dow Jones gained around 1% with materials and mining rallying on positive news around Evergrande’s potential default.

Taper date nears

But all eyes were on the Federal Reserve with Chair Jerome Powell making no change to the US$120 billion per month bond-buying program, but flagged it may begin tapering before the end of this year.

Historically, this would see a sell-off in markets. However, the communication has been consistent whilst the economy appears to be on a much stronger footing than in previous attempts.

In addition, the dot plot chart now suggests as many as four rate hikes in 2022, albeit a loose forecast, which would likely be a boon for the Aussie dollar.

The debt ceiling issue has raised its head again with politicians showing faux concern about the prospect of default. There is little doubt the debt ceiling will be extended, hence why the market barely reacts.

Robinhood adds crypto, Facebook’s advertising hit

Shares in Robinhood (NASDAQ: HOOD) jumped over 10% after announcing it would be launching a crypto wallet, with the cheap trading app doubling down on the sector.

On the other hand, Facebook (NASDAQ: FB) shares fell as much as 4% after the company highlighted growing issues with its advertising platform following Apple’s (NASDAQ: AAPL) recent privacy update. The advertising giant also announced its CTO would be stepping down, transitioning to a ‘Senior Fellow’ role in the next year.

Featured: 6 factors for growth investing & Apple’s recent product launch

US stock market movers

Here’s how other popular US stocks performed on Wednesday.

Following the positive lead from US markets, the S&P/ASX 200 (ASX: XJO) is set to edge higher when the market opens on Thursday. For all the latest, check out my ASX 200 morning report.

The Golden Rules of Investing

We might be experts in retirement, but with combined financial advice experience of 35+ years, we’ve nearly seen it all. 

In mid-2023, our senior team at Wattle Partners Financial Planning put the finishing touches on a brand-new report “The Golden Rules of Investing“.

In this free report, we outline the key principles that determine all of the portfolio construction and investment decisions of Wattle Partners. Collated over decades, this paper should be seen as a work-in-progress, constantly under review in light of the ever-evolving nature of markets. 

You’ll find the free report on my Author page. Simply click the button below to view the Golden Rules.

Get the golden rules

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At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.

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Wattle Partners is a financial advice firm, servicing clients around Australia, specialising in retirement planning (pre and post retirement). 

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