After a rough start to the week, markets appear stronger and are trending upwards.
“U.S. stock futures clawed back their earlier losses and traded higher on Thursday as tech shares continued their rebound following a torrid three-day sell-off,” write Fred Imbert and Jesse Pound of CNBC. “Apple shares were up 2.4%, building on a 4% jump from the previous session. Tesla was up 5.6% after surging nearly 11% on Wednesday. Earlier this week, Tesla suffered its worst day on record. Facebook, Amazon, Netflix, Alphabet and Microsoft were also higher.”
From my perspective, sell-offs and recoveries such as these are part of the normal trading cycles, and not indicative of long-term problems. Tech continues to drive the overall economy, and my hunch is the pattern will continue for the foreseeable future.
Congress Hopes to Advance U.S. Blockchain Capabilities
Congress is considering a bill that would improve the nation’s ability to compete with China on blockchain technology. The bill, called the “American COMPETE Act,” is moving swiftly through the legislative process, according to a news report.
“The bill calls for a study by the Department of Commerce and the Federal Trade Commission to advance blockchain technology in the United States,” writes Jason Brett in Forbes. “The new bill asks for numerous studies of this type across a variety of emerging technologies such as AI, quantum computing, the Internet of Things (IoT) and blockchain.”
It’s no secret that our ability to compete with the Chinese in the development of advanced technologies has both economic and strategic implications. Let’s hope this bill moves forward.
Amazon Ratchets Up Talent Search
In yet another clear signal of the technology sector’s economic force, Amazon announced that it’s looking to fill 33,000 corporate and tech positions.
“Amazon currently has 33,000 job openings for corporate and tech roles … employees who fill the corporate and tech roles will receive an average pay of $150,000, including salary, stock-based compensation and benefits,” writes Alexis Benveniste of CNN Business.
From my perspective, this story illustrates the continuing strength of our sector. Despite difficult times, the technology industry is growing – and hiring.
Facebook’s Data Transfers Face New Scrutiny from European Regulators
Facebook may be required to keep information about its European users in Europe. The requirement would pose numerous difficulties for Facebook, which routinely transfers data across borders.
“Facebook is facing the prospect of not being able to move data about its European users to the United States, after European regulators raised concerns that such transfers do not adequately protect the information from American government surveillance,” writes Adam Satariano of the New York Times. “The social network said on Wednesday that the Irish Data Protection Commission had begun an inquiry into its movement of data on European users to the United States. The Irish regulator oversees Facebook’s data practices in Europe and can fine it up to 4 percent of its global revenue for breaking European data protection laws.”
Investors Puzzle Over Palantir’s Value
Palantir is preparing for a direct listing, and it’s working hard to convince investors that it can achieve its potential. Palantir makes advanced software that sifts through huge amounts of data from multiple sources to help large government agencies and major corporations make better decisions.
“As Palantir gears up for its stock market debut, the company has a long way to go to convince potential shareholders that it’s worth the $20 billion price tag that investors gave it almost five years ago,” writes Ari Levy of CNBC. “investors are valuing the company at just over $10.5 billion. But the numbers are all over the map.”
