Alibaba (NYSE:BABA) stock is on the move Friday as investors react to mixed news about agreements between the U.S. and China.
BABA stock initially started out up today on news that preliminary agreements had been reached between the two countries. That would allow Chinese companies to avoid delistings from U.S. stock exchanges.
Unfortunately for BABA stock, those gains didn’t last long. The Federal Reverse rained on the Chinese stocks’ parade today with a speech from Chairman Jerome Powell about efforts to further combat inflation.
Powell said the following during his speech, as reported by CNN:
While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses.
Powell went on to say that the Fed’s responsibility to ensure price stability is “unconditional.” This has some experts believing citizens will see a double 75 basis points increase in inflation rates during next month’s Fed meetings.
News of the increasing interest rates and warnings from Powell dropped BABA stock today. And it was just the Chinese stock hurt by the news. Wall Street in general didn’t have a positive reaction to the statements made by the Fed Chair.
BABA stock trading volume is higher-than-average today at 36 million shares. The company’s stock is also largely unmoved from yesterday’s closing price as of Friday afternoon.
There’s more hot stock news traders need to know about below!
InvestorPlace is home to all of this news with our latest market coverage! A few examples include why shares of Jianzhi Education (NASDAQ:JZ), Micro Focus (NYSE:MFGP), and shipping stocks are on the move Friday! You can find out more on these matters at the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.