Tech stocks pulled back on Wednesday after a great start to the week, as the Nasdaq lost 1.3%.
The Federal Reserve released a new policy statement on Wednesday that markets predictably focused on the outlook from the world’s most powerful central bank. The Federal Open Market Committee forecast keeping interest rates near zero through 2023, underscoring the dire economic circumstances that may continue to permeate the labor market for years.
The only one of the three major U.S. indices to post a gain Wednesday, the Dow Jones Industrial Average rose 36 points, or 0.1%, to finish at 28,032.
Winter is coming: Snowflake IPO proves hot ticket. The enterprise cloud computing company Snowflake (ticker: SNOW) went public on Wednesday, and Wall Street’s appetite for the offering was nearly insatiable.
Already the largest tech IPO of 2020, Snowflake had planned to price its initial public offering between $75 and $85 per share, but ended up pricing at $120. It turns out even that was underpriced however; Snowflake shares finished the day up more than 111%, finishing above $253.
Both Warren Buffett’s Berkshire Hathaway ( BRK.A, BRK.B) and newly initiated Dow component Salesforce ( CRM) are investors in Snowflake, which has yet to make a profit but is now valued at more than $70 billion.
Boeing shredded by House committee. The Democrat-controlled House Transportation Committee issued a voluminous report on aerospace giant Boeing ( BA) and its safety failures with the grounded 737 Max, the Boeing model behind two fatal plane crashes.
The report is skeptical of whether Boeing has systemically transformed into a company more devoutly committed to safety, and also places blame on the Federal Aviation Administration. The report alleges a flawed FAA review process that allowed Boeing to exert inappropriate influence over FAA officials to move along approval for new designs.
Wall Street wasn’t surprised or shaken by the report. BA stock rose 2.4% Wednesday.
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