The Fed and the S.E.C. chair have their eyes on meme stocks and the Archegos fallout.
May 7, 2021
The Federal Reserve’s Financial Stability Report, released Thursday, followed an unusual six months for markets. Over that period, stocks climbed steadily as the U.S. economic outlook rebounded, and stories of excess began to crop up, such as the frothy markets around so-called “meme stocks” such as GameStop and huge losses at a number of banks tied to problems at a hedge fund, Archegos Capital Management.
“While broader market spillovers appeared limited, the episode highlights the potential for material distress” at financial companies that aren’t banks “to affect the broader financial system,” the Fed said in its report. It said hedge fund opacity had also raised questions during the meme stock episode: Some funds that were betting against the stocks in question took losses as chat board vigilantes poured into them.
Jobs Report Is Expected to Show a Big Gain: Live Updates
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WorkBoard réalise une levée de fonds de $75 millions de dollars en série D alors que des entreprises dans l ensemble des secteurs adoptent des OKR et accélèrent leur rythme de fonctionnement
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U.S. Economy Rebounds as Pain Caused by Pandemic Eases: Live Updates
RIGHT NOW
The economy picked up speed last quarter, shaking off some of the lingering effects of the pandemic as consumer spending grew, bolstered by government stimulus checks and an easing of restrictions in many parts of the country.
The Commerce Department reported Thursday that the economy expanded 1.6 percent in the first three months of 2021, compared with 1.1 percent in the final quarter last year.
On an annualized basis, the first-quarter growth rate was 6.4 percent.
G.D.P. is nearly back to pre-pandemic levels.
2019 Q4 LEVEL
and seasonality, at annual rates
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