Market Bizzz

U.S. equities, however, rallied this week as comments by Federal Reserve Chair Jerome Powell led to speculation that rate hikes would begin to slow and eventually turn to rate cuts in 2023. Shares of Amazon and Apple shot up 12% and 3% each after hours after the tech giants reported earnings that beat expectations.

Microsoft and Facebook-owner Meta both cited the harm to their business from a strong dollar: when America’s currency gains too much value, it can make products more expensive overseas or eat away at a beneficial exchange rate.

“When you think about the number of challenges in the quarter, we feel really good about the growth that we put up,” Apple chief executive Tim Cook said on an earnings call. For Apple, product sales tallied $63.4 billion in a drop from the same period a year earlier, but the dip was more than made up for by services revenue that climbed to $19.6 billion, earnings figures showed.

“It’s a very difficult environment to try to give forward guidance 60, 90 days in advance,” Powell said at a press conference after May’s meeting. “There are just so many things that can happen in the economy and around the world. So, you know, we’re leaving ourselves room to look at the data and make a decision as we get there.”

If the buyout deal is completed, Twitter shareholders will be entitled to receive $54.20 in cash for each common share they own, the company said, adding that its board was strongly in favor of the takeover.

The company had already lowered its profit and sales estimates in early June based on what it described as “unfavorable” changes in the foreign exchange rate as the U.S. dollar surged. A tough season for computer sales – blamed on supply chain disruptions and geopolitical instability – put pressure on Microsoft’s personal computing business, which relies on licensing revenue from PC manufacturers who install its Windows operating system on their products.