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Risk Appetite Wanes as IPO Darlings Falter

EQUITIES
  • Headline indices traded lower Wednesday, with the S&P, Dow Jones and NASDAQ all in minor negative territory as stocks of companies that had surged on recent IPOs ran out of stream and traded lower. Most notably Rivian, one of the biggest IPOs of recent years, slipped around 15% as markets retraced a minority of the 130% rally seen since last week's listing.
  • Elsewhere, card issuers and payment firms traded similarly poorly following Amazon's decision to end the acceptance of Visa credit cards on their website due to the high fee structure. Shares were marked lower, with Visa off over 5% as traders speculated that either Visa lose out on Amazon's business, or are forced to blink and revise their pricing.
  • The e-mini S&P traded wholly inside the Tuesday range, keeping technical parameters intact. 4717 remains the upside target should prices recover through the alltime highs. This level marks the 1.50 proj of Jul 19 - Aug 16 - Aug 19 price swing, with 4615.28, the 20-day EMA, as first support.

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