Home Broker News Stock to Put under Your Radar this Week: Visa

Stock to Put under Your Radar this Week: Visa

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Investors will most probably focus this week on growing bond yields which have recently become a major signal for equity trading. The activity in the bond market, where the major stocks have rallied to pre-pandemic rates, made some traders and investors concerned about rising inflation, which would most probably prompt the US central bank to begin increasing interest rates before the expected periods.

As bond prices rally to higher rates amid clear signs of an economic revival, traders prefer to get rid of high risk growth stocks and shift their funds to cyclical equities, which were popular in last year’s rally.

That rotation trade has influenced the NASDAQ Composite, pressuring it during the last couple of weeks. One of the top tech-heavy indexes trends down 7% compared to its high rates around a month ago. Bearing this macro forecast in mind, here is a top stock investors will closely watch this week.

Visa

It is expected to be another loss-making week for credit card behemoth Visa (NYSE:V) after media reports shared that the Justice Department has begun an inquiry into its debit card business and potential anticompetitive practices.

The company shared on Friday afternoon that examiners have begun to gather information on Visa debit operations. The Wall Street Journal, which first shared the exploration said the Justice Department is seeking to define whether the largest and most powerful card network in the United States has restrained merchants’ capability to direct debit-card transactions over less costly networks.

Visa shares dropped 6% on Friday afternoon and ended trading at $206.90. Inspectors will persistently seek to determine if Visa’s fee policies illegally give it unfair market superiority.

 

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