Twitter Stock Whipsaws After Jack Dorsey Steps Down from CEO Post
Twitter stock whipsaws in Monday trading after Jack Dorsey announces he’s leaving the social-media company after 16 years at it.
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Principal Points
- Twitter stock closes lower by 2.8% after a 13% jump following Dorsey’s exit from the company
- Fed Chair Powell to address virus concerns, inflation pressures before the US Senate today
What’s Moving in the Markets?
Twitter stock whipsawed during Monday’s regular trading on news that CEO Jack Dorsey is leaving the post with immediate effect. In other words, Jack Dorsey will no longer be at the helm of Twitter after 16 years of leading the social media.
The announcement was made by Mr. Dorsey himself, of course, on Twitter. “This was my decision and I own it,” the ex-CEO of Twitter said. “It was a tough one for me, of course. I love this service and company…and all of you so much. I’m really sad…yet really happy.”
Still, he ended his message on a positive note saying this decision would prove to be the “right move.”
As a result, after the announcement, Twitter shares spiked 13% to reach $52 apiece. Later, however, buying momentum dried up and the stock pared back all gains. Moreover, shares of the social-media company dropped 2.8% on the day.
To dive into more detail, Jack Dorsey will maintain a place on the Twitter advisory board. The chief executive spot will be taken by the current chief technology officer, Parag Agrawal.
What’s the Big Picture for Traders?
The wider financial markets this week continue to digest developments over the concerning Omicron coronavirus variant. More specifically, stocks, currencies, and even crypto, remain jittery as new updates come out constantly.
The latest of them arrived earlier today from the Moderna CEO, Stephane Bancel. He expressed worry over whether current vaccines provide protection against the new strain. It’s more likely that they don’t, he said. “There is no way the current shots will provide the same level of protection against omicron as they do against delta. And there will be a material drop in their efficacy.”
Further, if a new vaccine is needed to fight the Omicron strain, it will be ready in early 2022, Mr. Bancel commented.
What to Watch in the Markets?
In other news, Federal Reserve Chairman Jerome Powell appears today before the US Senate. He will speak about the US economy and the coronavirus threat over the prospects for recovery. In addition, Mr. Powell will also address looming inflation pressures and the Fed’s approach to an overheating economy.
To this end, traders and investors will watch for trading opportunities in the forex market as well as stocks and commodities.
Meanwhile, in cryptocurrency trading, bitcoin has slipped from its session high today. The price of the original cryptocurrency is lower by about 3% today and is changing hands near $57,000 per token. Earlier, the leading crypto asset climbed above $59,000 as traders are heading into the market to buy the dip.
Economic Data Coming Up Today (EST times)
Federal Reserve Chairman Jerome Powell appears before the Senate Banking Committee at 10:00 am. He will be joined by Treasury Secretary Janet Yellen.
On the economic news front, Canada’s GDP data will be out at 08:30 am. Later, Australia’s GDP data will be released at 07:30 pm.