U.S. indices were muted to start the week, despite Federal Reserve chair Jerome Powell commenting that the economy could be primed for upcoming growth.
Speaking in an hour long interview over the weekend, the head of the Fed stated that, “We feel like we’re at a place where the economy is about to start growing much more quickly and job creation coming in much more”.
With monthly Non-farm payrolls recently beating expectations, Powell added that, “The outlook has brightened substantially. And that’s the base case”.
The IMF recently announced that it expects the U.S. economy to grow by over 6% this year, and Powell’s statement seems to echo that expectation.
Despite this however, the Dow Jones was down 0.32% as of writing, with the S&P 500 also marginally lower down 0.21% to 4,120.
Microsoft confirms $16 billion acquisition deal
As we head into the start of earning season, Microsoft today announced that it has completed a $16 billion acquisition of a speech recognition company.
The company announced that it will be acquiring Nuance communications for 56 cents per share.
This move will be Microsoft’s largest acquisition since it acquired LinkedIn in 2016 for $26 billion.
Microsoft was one of the standout companies in 2020, as many who were forced to work from home, used the company’s technology to power their home offices.
Shares in $MSFT were up 0.11% to 256.12 as of writing.
FTSE 100 slips despite UK re-opening
The United Kingdom today opened up non-essential shops for the first time since December as it eased lockdown restrictions.
Pubs, restaurants, clothing stores amongst others were allowed to reopen across the country, sparking the British high street to life.
The UK has now vaccinated over half of its population and aims to have the rest vaccinated by the end of the summer.
Despite this however, the country’s main index the FTSE 100 was down 0.39% as of writing, carrying on from Friday’s declines.
Quote of the day – “Novice Traders trade 5 to 10 times too big. They are taking 5 to 10 percent risk, on a trade they should be taking 1 to 2 percent risk on.”– Bruce Kovner
Senior Market Analyst