US Markets Today: Top Five Developments

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From OECD’s improved US growth forecast, Zoom Video CEO’s ownership transfers to Beyond Meat’s latest collaborations with Walmart Inc., the US markets saw a variety of developments on Tuesday, which kept investors on their toes.

The following are some of the highlights.

OECD Revises Growth Forecast To 5.6% in 2021

The 37-member OECD said on Tuesday that the US stimulus plan would help expand the global economy by 5.6 percent in 2021, up by 1.4 percentage points from its previous forecast in November, when it had pegged the growth at 4.2 percent.

The OECD, however, has cautioned that a sharp rebound in the world’s largest economy may also unbalance the smaller economies.

It warned that a sharp rise in US Treasury bond yields may trigger capital flight from emerging economies where the governments continue to grapple with covid vaccine supplies and economic decline.

The OECD has projected the US economy to grow at 6.5 percent, the fastest expansion since 1984. The global economic output had declined by 3.4 percent in 2020.

Pic Credit: Pixabay.

Bitcoin Reclaims US$1 Trillion Valuation

Cryptocurrency Bitcoin surged to a two-week high of US$54,500 on Tuesday, reclaiming its previous US1-trillion market cap attained last month. The digital currency gained prominence this year after several high-profile companies, including Tesla Inc., invested huge sums of money in the coin.

Besides, financial institutions such as the Bank of New York Mellon Corporation declared last month to recognize the digital currency as a financial asset like money. Bitcoin’s popularity has surged in recent months, especially among the millennials who have placed huge bets on the currency. 

Bitcoin ETFs also point at its growing acceptance among investors who were looking to diversify their portfolios. Some analysts have forecast that Bitcoin may rise to U$100,000 per coin this year.

Beyond Meat Stock Trends After Walmart Deal

The stock of Beyond Meat Inc. (NASDAQ:BYND) was trending on Yahoo and Google on Tuesday after it announced its partnership with Walmart Inc. to expand product offerings. The stock was priced at US$139 at 1.09 pm ET on Tuesday, which was an increase of 2.8 percent from the previous close.

The company manufactures plant-protein-based products that mimic the traditional meat for customers who want to explore food alternatives. Beyond said on Tuesday that it will start supplying its meat-alternative sausages to some 400 Walmart stores across the US.

Plant protein as an alternative to meat has been gaining ground in some parts of the globe, mainly due to the pollution and the issue of animal cruelty associated with the traditional meat industry.

Pic Credit: Pixabay

Zoom Video Founder Transfers US$6 Bn Worth Of His Shares

Zoom Video Communications Inc. founder Eric Yuan transferred around 40 percent of his ownership in the company, or worth about $6 billion shares, to unspecified beneficiaries, according to a filing. The transaction, recorded as gifts, represents two parts of nearly 9 million shares each.

A Zoom spokeswoman said that the transfers were made in line with the terms of Mr. Yuan and his wife’s trusts. Zoom shares had more than tripled during the pandemic last year.

Mr. Yuan held the biggest stake in the company before last week’s transactions. Zoom stock was up 8.51% from the previous close to US$337.38 at 1.43 pm ET on Tuesday.

T-Mobile to Share Customer Data With Advertisers

America’s second-largest cellphone company T-Mobile US Inc. said on Tuesday that it will share its subscribers’ mobile app data with potential advertisers starting April. The subscribers, however, will have the option to opt-out from the program if they choose to do so, the company said.

T-Mobile, which had acquired the Sprint Corporation last year, also plans to sign up its Sprint subscribers for the program. As of 2020, T-Mobile has more than 80 million phone users under its platforms. The company said that children will not be part of the program.