JPMorgan’s $1 billion fine; Nike Stock jumps | Stock market news

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Wednesday was a wave of red on Wall Street, as all three major US indices finished significantly lower. Bearish momentum has developed in September as investors begin to accept the growing likelihood that no further stimulus relief will occur anytime soon.

The technology sector, which has been the star of the markets in 2020 and has come under recent scrutiny due to high valuations, led Wednesday’s selloff, with the Nasdaq losing 3%.

The Dow Jones Industrial Average fell 525 points, or 1.9%, to end at 26,763.

Nike does. Shares of footwear and apparel giant Nike (ticker: NKE) jumped 8.8% on Wednesday despite general market turmoil, as investors cheered explosive quarterly results and upbeat forecasts for the exercise.

Although revenue fell 1% from the same period a year ago, the $10.6 billion figure was nearly $1.5 billion higher than expected as the company experienced a higher than expected demand for its products. Nike-branded digital sales jumped 82% last quarter, and earnings per share were actually up 10% from a year ago.

Nike stock is up 25% in 2020 through Wednesday’s close.

Imminent settlement of JPMorgan. JPMorgan (JPM) is reportedly set to reach a nearly $1 billion settlement with US regulators over allegations that it manipulated the metals market and US Treasuries. Three current or former JPM employees were criminally charged last September under the Racketeer Influenced and Corrupt Organizations Act, or RICO, a law that rose to prominence in the 1980s as it was used against organized crime.

The DOJ is focused on Big Tech. It’s no surprise that the US Department of Justice yearns to clamp down on some of Silicon Valley’s biggest names, but the department is now taking more concrete action, submitting a proposal to Congress that would reduce the favorable legal parameters for companies like Twitter (TWTR), Facebook (FB) and Alphabet (GOOG, GOOGL).

Current law limits the liability incurred by these companies for the content published on their sites.

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