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S&P 500 Slips and Here’s Why, Alphabet and Microsoft’s Earnings Call & Shopify Cuts 10% of Workforce

S&P 500 Slips, As IMF Cuts Global Growth Forecast

The S&P 500 was trading lower on Tuesday, as markets reacted to the news that the IMF has slashed its 2022 growth outlook.

Following its April GDP forecast of 3.6 percent growth for 2022, the International Monetary Fund now expects growth to slow to 3.2 percent for the rest of the year.

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In a statement which accompanied the report, IMF’s Chief Economist Pierre-Olivier Gourinchas stated that, “The outlook has darkened significantly since April. The world may soon be teetering on the edge of a global recession, only two years after the last one”.

Following a 3.1% contraction in 2020 as a result of the coronavirus pandemic, global growth rebounded last year to 6.1%.

As of writing, the S&P 500 is trading (-1.32%) lower.

Alphabet, Microsoft Shares Fall Ahead of Q2 Earnings

Shares in Alphabet and Microsoft were lower during today’s session, as markets prepared for the release of their Q2 earnings report.

Both tech giants are set to hold their quarterly earnings call after today’s closing bell, which has traders nervous.

This comes as markets anticipate that record levels of inflation will have a negative impact on both businesses’ bottom lines.

Heading into their call, Microsoft is expected to report earnings of $2.29 a share on revenue of $52.4 billion.

On the other hand, Alphabet is expected to earn $1.28 per share on revenue of $70 billion.

As of this writing, both companies were trading more than 2.30 percent lower.

Shopify Down 14%, As Company Lays Off 10% Of Workforce

Shopify stock was down by over 14% on Tuesday, as the company announced that it was trimming its workforce.

The Canadian company increased hiring after experiencing rapid growth during the pandemic. But it appears that decision has now backfired.

Speaking today, the company’s CEO Tobi Lütke said that, “It’s now clear that the bet didn’t pay off”.

He went on to add that, “Ultimately, placing this bet was my call to make and I got this wrong”.

$SHOP is down 14.85% as of writing.

“The hard, cold reality of trading is that every trade has an uncertain outcome.”

-Mark Douglas

Eliman Dambell

Senior Market Analyst