Daily Newsletter | September 20, 2023

TLDR

MARKET RECAP → US stocks slid Wednesday after the Fed signaled it is not done hiking rates. The tech-heavy Nasdaq Composite (QQQ) fell the most of the major indexes, closing -1.5% lower for the day.

HAWKISH PAUSE → Fed’s no-hike decision hinted at rates staying higher for longer. Given recent economic data, the Fed’s projections signal one more hike in 2023 and two cuts in 2024 (compared to four cuts in its previous projections).

KLAVIYO’S NYSE DEBUT → Marketing automation firm Klaviyo (KVYO) shares popped as much as 23% on its public debut on the NYSE today, Shopify’s (SHOP) 11% stake highlighted, and diversification on the horizon.

SPACEX VS. DOJ → SpaceX countersued the DOJ over hiring bias claims, emphasizing their inclusive hiring and the sensitive nature of their tech.

Sean Horgan

Head of Investor Relations @ MoneyLion

$shorgan

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Today’s S&P 500 Heatmap

Source: finviz.com

Today’s Top News

HAWKISH PAUSE

? The Federal Reserve decided not to increase interest rates, but hinted at maintaining higher rates for an extended period. They anticipated one more hike by the end of 2023, marking a total of twelve since March 2022.

? Projections revealed a potential for two rate cuts in 2024, which was two less than the previous forecast. The “dot-plot” showed a likely funds rate of around 5.1% by the end of the year.

? Despite no rate hike, there was significant uncertainty about the Federal Open Market Committee’s future moves. The inclination seemed to favor a more restrictive policy and a prolonged higher rate approach.

Source: shutterstock

KLAVIYO’S NYSE DEBUT

? Klaviyo’s shares surged by as much as 23% to $36.75 during its NYSE debut, following the company’s IPO pricing at $30 per share, valuing it at over $9 billion.

? The marketing automation firm had previously secured a valuation of $9.5 billion in 2021. This debut came a day after Instacart’s NASDAQ entry, which saw a 12% stock increase post its initial 40% surge.

?️ E-commerce giant Shopify, a significant Klaviyo backer, holds approximately 11% of Klaviyo’s shares. Klaviyo’s primary focus has been aiding online businesses, but it’s expanding its reach to other sectors like travel and entertainment.

Source: shutterstock

SPACEX’S LEGAL COUNTER

? SpaceX, led by Elon Musk, launched a countersuit against the U.S. Department of Justice (DOJ) in a Texas federal court, aiming to halt the DOJ’s hiring discrimination allegations based on constitutional grounds.

? Following the DOJ’s lawsuit against SpaceX last month, which claimed the company’s biased hiring against refugees and asylees, SpaceX’s legal team responded, “SpaceX has not engaged in any practice or pattern of discriminating against anyone… and in fact has hired hundreds of noncitizens.”

? Central to the dispute: SpaceX’s hiring practices under military tech regulations, given the sensitive nature of rocket and spacecraft technology. The company emphasized that every employee has access to tech and data governed by specific regulatory regimes.