11:11 a.m. Oct. 12, 2021
- By Mark Decambre
The stock market closed lower Tuesday, logging another intraday reversal and a 3rd straight fall for the longest skid in 3 weeks U.S. stocks finished lower Tuesday, with the main indexes erasing early modest gains to close lower for the third straight decline for the three main equity benchmarks, ahead of the unofficial start of third-quarter results from American corporations. The Dow Jones Industrial Average fell 118 points, or 0.3%, the S&P 500 index declined 0.2% to 4,350, while the Nasdaq Composite Index declined 0.1% to 14,465. The small-capitalization Russell 2000 index , however, was headed for a close in positive territory, up 0.4%. Markets have been choppy amid concerns about slowing growth here and abroad and worries that inflation may be more durable than had been previously estimated by some members of the Federal Reserve. The International Monetary Fund said that it now sees global growth of 5.9% this year - down one-tenth of a percent from its July forecast - and then slowing to 4.9% growth in 2022. For the U.S., the IMF cut its growth estimate for this year down to 6%. Atlanta Federal Reserve President Raphael Bostic said that the recent burst of U.S. inflation is likely to last longer than expected and no longer should be considered "transitory." Minutes from the Fed's Sept. 21-22 meeting are due at 2 p.n. ET on Wednesday. Before that, a report on consumer inflation, the consumer price index, is due at 8:30 p.m. ET.
4:36 a.m. Oct. 12, 2021
- By Mark Decambre
Dow drifts higher Tuesday but stock market gains capped as IMF dials back global growth outlook U.S.stocks rose tenatively Tuesday morning as inflation worries dogged bullish investors ahead of third-quarter earnings and as the International Monetary Fund cut its outlook for global growth. The Dow Jones Industrial Average rose 36 points, or 0.1%, at 34,533, the S&P 500 index inchded 0.1% higher at 4,364, and the Nasdaq Composite Index advanced 0.1% at 14,505. The IMF on Tuesday said it expects global GDP to grow by 5.9% in 2021---0.1 percentage point lower than its previous estimate. "This modest headline revision masks large downgrades for some countries," wrote Gita Gopinath, chief economist at the IMF, in a Tuesday blog post. The report comes as investors are wrestling with surging energy prices, which are contributing to pricing pressures across the globe in the wake of the COVID-19 pandemic.
3:24 a.m. July 15, 2021
- By Emily Bary
Revolut valuation surges to $33 billion after latest funding roundEuropean fintech company Revolut announced a new $800 million funding round Thursday that values the company at $33 billion. Revolut had previously fetched a $5.5 billion valuation . The company plan to use the funds "to further its growth plans," including through product innovation that targets monetary transfers, savings, insurance, and the democratization of trading, according to a release. The company also intends to use the money to and power its entry into India as well as other international markets. SoftBank Vision Fund 2 and Tiger Global Management became new investors in Revolut through this latest funding round.
7:34 a.m. March 24, 2021
- By Greg Robb
Yellen in sharp exchange with Republican senator over IMF plan to expand reservesTreasury Secretary Janet Yellen had a sharp exchange Wednesday during a Senate hearing with Sen. John Kennedy, Republican of Louisiana, over a renewed plan by the International Monetary Fund to issue $650 billion in new reserves, known as Special Drawing Rights, to member states. IMF Managing Director Kristalina Georgieva on Tuesday said she would present the plan to the IMF's executive board in June. The IMF first floated the plan last year as a way to help countries pay for the costs of battling the coronavirus. But it was blocked by the Trump administration and then-Treasury Secretary Steven Mnuchin. Republicans in Congress are unhappy the IMF plan has been resuscitated. They note that China, Russia and Venezuela will benefit from the new reserve allocation. Kennedy said the Biden administration was making an end-run around Congress and alleged the IMF plan would cost American taxpayers "$180 billion." Yellen grew frustrated as the exchange went on. She said the U.S. would earn interest on its new SDRs so that the cost of the program would be a "wash." "I don't know where you got a number like that from." Yellen said.