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SoftBank’s Arm Holdings fell after a stellar debut 

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Last Week’s Highlights

SoftBank’s chip designer fell after debut

Shares of Arm Holdings, SoftBank’s chip designer, experienced downward volatility after its debut on the Nasdaq, where the British company was valued at $65 billion. On Friday, shares fell 4.5% to close at $60.75, after hitting $69 at the start of the session. The drop came amid concerns about weak consumer demand and falling stock indices in general. Despite the recent 25% rise the previous day, some attributed the drop to the fact that SoftBank still owns about 90% of Arm’s outstanding shares.

Automakers go up despite strike

Despite a strike and comments from President Joe Biden, shares of Ford, General Motors, and Stellantis rose at the end of the trading day. The strike, led by some 13,000 members of the United Auto Workers (UAW), prompted Biden to express his support for the unions and the need for fair compensation for workers. Meanwhile, government officials are working to mediate negotiations. Although corporate benefits are high, some are concerned about the pay disparity, with CEOs earning considerably more than average union workers. The UAW seeks a shorter workweek and a staggered wage increase over four years.

Coming Up This Week

Bank of America is affected by inflation

Bank of America has announced disappointing credit card results, leading to a decline in the value of its stock. Bank of America’s credit card default rate has exceeded expectations, with an increase of 2.13% in August. While this is higher than July, it is still below August 2019 default levels. Consumers continue to spend at a steady pace, but inflation is taking a toll on the economy. Some reports suggest that consumers are increasingly turning to credit cards and “buy now, pay later” services due to inflationary pressure, which could be contributing to delinquencies. Despite this, analysts consider Bank of America to remain a moderate buy, with a potential upside of 21.79%.

Cannabis stock up with a banking act

The SAFE Banking Act is generating positive momentum in cannabis stocks as it seeks to open access to banking services for marijuana businesses, reducing reliance on cash and improving security. While some opponents prefer outright prohibition of marijuana, this legislation has bipartisan support and focuses on banking and crime reduction. Some companies, such as Trulieve Cannabis and Green Thumb Industries, experienced stock increases, while others, such as Tilray and Curaleaf Holdings, had slight declines. Analysts are supportive of these marijuana stocks, highlighting the upside potential of Trulieve Cannabis and the downside risk of Tilray.

All information provided was collected up to the last business day of the previous week of the release of this NewsFlight. The purpose of NewsFlight is to summarize and make accessible information on a variety of topics within the world of investing and personal finance, and thus cannot be considered formal research or reports. All sources utilized to compile the NewsFlight newsletter are considered trustworthy by the FlexInvest team. FlexInvest is not affiliated with and does not receive remuneration from the news sources used to compile NewsFlight. As well, any images or logos incorporated into the NewsFlight newsletter are not necessarily property of FlexInvest and may solely be included to provide context for the news covered. NewsFlight should not be taken as advice to sell or buy securities or to make any investment. When investing in securities or other financial products, there is always the potential to lose money or asset value. FlexInvest recommends that its users consider their investment objectives and risks before investing. Additionally, any projections or analysis made by authors of NewsFlight cannot be considered as a promise of future trends or returns. Opinions expressed in NewsFlight are not representative of FlexInvest.

Market News

On Friday, Wall Street experienced sharp declines,mainly due to concerns about weakness in consumer demand that hit chipmakers. In addition, rising Treasury yields put pressure on mega-cap companies such as Amazon. Shares of Nvidia, Advanced Micro Devices, Broadcom, and Micron Technology also fell, leading the Philadelphia semiconductor index to lose nearly 3% on the session.

The S&P 500 was down 1.22%, the Nasdaq retreated 1.56%, and the Dow Jones fell 0.83% on the day. For the week, the S&P 500 lost 0.16%, the Nasdaq lost 0.39%, and the Dow Jones rose 0.12%.

Wild Card

Here are 2 stocks Warren Buffett may consider doubling down on.

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