Cybersecurity Firm Netskope Raises $908.2 Million In US IPO

Stocks

Summary:

Cloud security company Netskope raised $908.2 million in its U.S. initial public offering, priced at $19 per share. While the valuation is lower than previous fundraisings in 2021, the market is rekindled with interest in new share issuances.

Cybersecurity firm Netskope raised $908.2 million in an initial public offering in the United States, the cloud-based cybersecurity company said on Wednesday.

The Santa Clara, California-based company sold about 47.8 million shares at $19 apiece, at the higher end of its target range, which it had previously raised to $17 to $19 per share, confirming an earlier report by Reuters.

This gives the company a valuation of $7.26 billion, compared with the $7.5 billion it fetched in a 2021 funding round led by investment firm ICONIQ.

Investor interest in U.S. IPOs has revived as a series of recent solid debuts helped relieve residual anxiety over President Donald Trump's tariffs, which delayed several listings in April.

A slew of companies — from crypto and fintechs to biotechs and coffee bars — have gone public post-Labor Day, signaling pent-up investor appetite for new issues.

Earlier on Wednesday, ticket reseller marketplace StubHub started trading on the New York Stock Exchange, in a closely watched debut by a company tied to consumer discretionary spend.

Netskope, founded in 2012, develops cloud security software that helps businesses safeguard apps, websites and data from cyber threats.

Cybersecurity has become an increasingly pivotal part of corporate budgets worldwide, as frequent threats from digital attacks continue to threaten operational continuity and confidential data.

Netskope's net loss narrowed to $170 million on revenue of $328 million in the six months ended July 31, compared with a net loss of $207 million on revenue of $251 million a year earlier.

Morgan Stanley and J.P. Morgan are the lead underwriters for the offering. Netskope will start trading on the Nasdaq under the "NTSK" symbol.

Source: Yahoo Finance

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

Add to Favorites

Manuel

Central Bank

Economic

Federal Reserve Chair Jerome Powell on Wednesday explained why the three missions Congress imposed on the central bank add up to two in real-world conditions.

Powell, speaking at a press conference following the latest interest-rate-setting Federal Open Market Committee meeting, was responding to a question about an official directive for the central bank to achieve “moderate long-term interest rates.”

This so-called third mandate has largely gone unremarked on by central bankers, who have instead long framed their mission as a dual-mandate job, with monetary policy focused on keeping inflation low and stable and the job market sustainably strong.

Powell told reporters the third mandate is real but as central bankers see it, derivative of the two better-known goals laid out in the law that set up and directs the central bank.

“We think moderate long-term interest rates are something that will result from stable inflation, low and stable inflation and maximum employment,” Powell said. Fed officials have not in some time thought of the third mandate as something that needs “independent action.”

Powell's view on long-term rates and the conduct of monetary policy comes in a climate where the central bank’s main policy tool, the federal funds rate, most clearly impacts the cost of short-term borrowing in the U.S. economy.

Fed officials have long flagged the short end as where their main influence is, with longer-term rates moved by a mix of factors, often unrelated to monetary policy. Fed officials also view their ability to influence long-term rates as more limited.

LONG RATES

But against that view, the conduct of monetary policy over the last nearly two decades suggests that story is not always so simple. Since the financial crisis in 2007 the Fed has engaged in two major chapters of large-scale bond buying, also known as quantitative easing, or QE.

The purchases during the crisis and then in the COVID-19 pandemic were driven by two objectives: market stabilization and providing additional stimulus when the federal funds rate was at near-zero levels.

A key way the Fed bond buying worked was to help lower longer-term interest rates, a goal in line with the third mandate. The challenge for the Fed is that it has never been clear how much benefit it got from huge purchases of Treasuries and mortgage bonds. Even so, they did help lower real-world costs for borrowers such as the government and home buyers.

Fed Governor Christopher Waller, speaking in July, said “the idea of QE is to buy longer-duration securities as opposed to short-duration assets. By increasing the demand for long-dated securities, the Fed drives up the price and drives down the yield on those securities.”

Waller has also noted a number of times, however, that relative to the changes in short-term rates big Fed bond buying has a modest stimulative impact on the economy.

The Fed’s influence on longer-term rates also has political dimensions. Past QE chapters have generated concerns that the central bank was helping make government borrowing costs cheaper than they would otherwise be.

That argument has loomed back into sight with the return of Donald Trump as president. Trump, in pressing the Fed to cut rates aggressively, has said that it would cheapen government interest rate costs, shrugging off how it might also drive up inflation.

The arrival of Stephen Miran as a Fed governor, on leave from his Trump White House advisory job, has also brought new attention to the third mandate. “With the new addition to the Committee there is bound to be speculation about the Fed’s so-called third mandate” as the Fed presses forward with the balance sheet unwind process started in 2022 that followed its pandemic-era bond buying, noted economists at investment bank Mizuho.

Source: Reuters

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Manuel

Cryptocurrency

CME Group announced it would launch options tied to Solana (SOL) and XRP futures by Oct. 13, according to a Sept. 17 statement.

According to the firm, the options product will be offered on standard and micro contracts for both tokens, with expiries available weekly throughout the year.

The exchange said these contracts are designed to meet growing demand from institutions and professional traders looking for tools beyond Bitcoin and Ethereum.

Unlike its futures product, which binds traders to buy or sell at a set price on a future date, the options product provides investors with the right, but not the obligation, to enter into those contracts. That flexibility allows market participants to hedge downside risks or leverage price movements more precisely.

Giovanni Vicioso, CME’s global head of crypto products, said: “The launch of these options contracts builds on the significant growth and increasing liquidity we have seen across our suite of Solana and XRP futures.”

Notably, CME’s decision builds on months of rising liquidity in its existing Solana and XRP futures.

Since debuting SOL futures in March, more than 540,000 contracts have changed hands, representing $22.3 billion in notional value. Trading momentum peaked in August, when open interest reached 12,500 contracts valued at nearly $900 million.

On the other hand, XRP futures, which launched in May, have also generated comparable activity.

The exchange reports more than 370,000 contracts traded to date, worth $16.2 billion in aggregate. Average daily volumes have climbed to 6,600 contracts, with open interest recently touching $942 million.

Considering this, the exchange argued that this liquidity proves there is sufficient demand to sustain a parallel options market.

The exchange is coordinating with major liquidity providers, including Cumberland and FalconX, to support the launch.

Joshua Lim, global co-head of markets at FalconX, said: “The rise of digital asset treasuries and other access vehicles for crypto has only accelerated the need for institutional hedging tools on Solana and XRP.”

Source: Cryptoslate

Risk Warnings and Disclaimers

Add to Favorites

Manuel

Stocks

China–U.S. Trade War

Nvidia (NVDA) shares fell 2.6% Wednesday after a report claimed China's regulators banned Chinese tech firms from purchasing some of the AI giant's chips.

The Cyberspace Administration of China has told companies, including ByteDance and Alibaba, to end their testing and orders of the RTX Pro 6000D, the Financial Times reported on Wednesday, citing people with knowledge of the matter.

The report comes ahead of a call scheduled between President Trump and China's Xi Jinping to discuss trade this Friday. Semiconductor technology has been a focal point in trade tensions between the two countries.

Hedgeye Risk Management analyst Felix Wang wrote in a note following Wednesday's news, "The decision underscores Beijing’s push to cut reliance on US semiconductors amid intensifying AI competition with the US and the promotion of domestic chip and tool utilization."

Nvidia CEO Jensen Huang has repeatedly stressed the importance of the Chinese AI market, which he sees as a rapidly growing $50 billion opportunity.

Huang lobbied the Trump administration to lift a US ban on exports of its lower-power H20 chips to China this summer in an unprecedented deal that involved Nvidia sharing its revenue from those sales with the US government.

Analysts noted at the time that the deal — which has not yet been finalized — could lead Chinese firms to shift toward domestic chip suppliers because the Chinese government wouldn't want companies effectively handing over money to the US government.

Huang said in August that Nvidia is working on a less-powerful version of its latest Blackwell chips for China.

When asked about China on Wednesday during a briefing in London, Huang told reporters, “I think that we could only be in service of a market if the country wants us to be.”

“I’m disappointed with what I see, but they have larger agendas to work out, you know, between China and the United States, and I’m understanding of that, and we’re patient about it," he added.

Meanwhile, Chinese chip firms are working to fill the gap.

The Wall Street Journal reported in late August that Alibaba is testing a new chip for AI inferencing and that a slew of highlighted Chinese companies are developing substitutes for Nvidia's H20 China chip.

Jefferies analyst Edison Lee has noted that Chinese AI cloud spending is accelerating. In a note in early September, the analyst said that capital expenditures from China's three big cloud service providers — Tencent (0700.HK), Alibaba (BABA), and Baidu (BIDU) — as well as ByteDance, are "quickly catching up" with US counterparts.

Source: Yahoo Finance

Risk Warnings and Disclaimers

Add to Favorites

Manuel

Central Bank

Forex

Futures on the federal funds rate, which measure the cost of unsecured overnight loans between banks, further raised the odds on Wednesday that the Federal Reserve will deliver another interest rate cut at the October meeting, with an 86% probability.

That was 71.6% before the Fed's decision on Wednesday to cut interest rates by 25 basis points to the 4.00%-4.25% range. In a statement, policymakers indicated it will steadily lower borrowing costs for the rest of this year, as policymakers responded to concerns about weakness in the job market

The remaining odds of about 13-14% are betting the Fed will pause.

U.S. rate futures also factored in about 70 basis points in rate cuts in 2025 after the Fed statement. The Fed's rate forecast or the so-called "dot plot" showed projections of two more rate declines this year.

The dots from the meeting in June showed the median expectation from policymakers was for 50 bps of cuts this year and single 25-bp declines in 2026 and 2027.

In a press briefing after the Fed statement, Fed Chair Jerome Powell indicated that Wednesday's move to lower interest rates was a risk management cut, adding that he doesn't feel the need to move quickly on rates.

"Powell is going to need to justify why the dots show more cuts in 2026 with lower unemployment and higher inflation than projected in June," said Christopher Hodge, chief U.S. economist at Natixis in New York.

"The dots are an awkward amalgam of predictions that are not easily explained, but still, the dovish dot plot seems in conflict with the projected inflationary/labor dynamics. I do think the Fed will ultimately keep moving towards neutral, but that will help to keep inflation elevated throughout 2026."

Compared to the stagflationary risks contained in the last set of projections, with the Fed slowing its rate cuts to head off inflation, the new projections show increasing belief among Fed officials they can head off any rise in unemployment with a faster pace of rate reductions, while inflation eases slowly next year.

Only new Governor Stephen Miran, who joined the Fed on Tuesday and is on leave as the head of the White House's Council of Economic Advisers, dissented in favor of a half-percentage-point cut.

Miran dissented over the latest cut and appears to have penciled in the steepest rate cuts in projections issued after he joined the Board of Governors on Tuesday. In the newest "dot plot," one rate projection of 2.875% for the end of 2025 stands out as being 75 basis points below the next lowest one. Trump has demanded steep rate cuts.

Source: Reuters

Risk Warnings and Disclaimers

Add to Favorites

Manuel

Commodity

Political

Oil eased after a three-session advance as traders assessed fresh US stockpile data and a Federal Reserve interest-rate cut.

West Texas Intermediate fell 0.7% to settle above $64 a barrel after the Federal Reserve lowered its benchmark interest rate by a quarter percentage point and penciled in two more reductions this year. Although lower rates typically boost energy demand, investors focused on policymakers’ warnings of mounting labor market weakness.

Traders had also mostly priced in a 25 basis-point cut ahead of the decision, leading some to unwind hedges against a bigger-than-expected reduction. The dollar strengthened, making commodities priced in the currency less attractive. Oil´s Run of Gains Cools With Focus on US Stockpiles, Fed Cut_1

Oil´s Run of Gains Cools With Focus on US Stockpiles, Fed Cut_1

“There is a somewhat counterintuitive reaction to the Fed’s cut, but the dovish pivot cements their shift to protect the labor side of their mandate,” said Frank Monkam, head of macro trading at Buffalo Bayou Commodities. The shift suggests “an admission that growth risks to the economy are becoming more apparent and concerning.”

The Fed move compounded an earlier slide as traders discounted the most recent US stockpile data, which showed crude inventories fell 9.29 million barrels amid a sizable increase in exports. However, the adjustment factor ballooned and distillate inventories rose to the highest since January, adding a bearish tilt to the report.

“Traders like to see domestic demand pulling the inventories,” as opposed to exports, said Dennis Kissler, senior vice president for trading at BOK Financial Securities.

The distillate buildup also stunted a rally following Ukraine’s attack on the Saratov refinery in its latest strike on Russian energy facilities — which have helped cut the OPEC+ member’s production to its lowest post-pandemic level, according to Goldman Sachs Group Inc.

Still, the strikes haven’t been enough to push oil out of the $5 band it has been in for most of the past month-and-a-half, buffeted between geopolitical tensions and bearish fundamentals. The accelerated return of OPEC+ supply has boosted predictions of a looming glut later in the year, while growth-sapping tariffs imposed by US President Donald Trump threaten to destabilize the US economy.

Brent’s second-month implied volatility was subdued after it fell to the lowest in more than three weeks on Monday, as outright prices remain firmly stuck within the narrow range seen since early August.

Source: Bloomberg

Risk Warnings and Disclaimers

Add to Favorites

Adam

Economic

Dow Rallies 300 Points as Traders Brace for Fed Decision and Rate Outlook

U.S. stocks showed mixed performance Wednesday as investors positioned ahead of the Federal Reserve’s latest rate decision and economic projections. While the S&P 500 slipped 0.1% and the Nasdaq Composite dropped 0.4%, the Dow Jones Industrial Average added 300 points, or 0.6%, boosted by gains in retail giants like Walmart.

Markets largely expect a 25 basis point rate cut from the Fed, with nearly 96% probability priced in, according to CME FedWatch data. Attention remains squarely on the central bank’s forward guidance and the updated “dot plot,” which could signal how many more rate cuts are on the table heading into 2026.

Will the Fed Deliver Rate Relief Despite Sticky Inflation?

While inflation remains above the Fed’s 2% target, recent labor data suggest the job market is cooling. Macquarie strategist Thierry Wizman noted the Fed is likely to acknowledge downside risks to employment with a measured 25 basis point cut, but Chair Jerome Powell is expected to avoid locking in further reductions. Traders will closely watch for dissenting votes among FOMC members, after two policymakers pushed back in July’s meeting.

A dovish tone from Powell could open the door to a potential easing cycle, especially if economic data continues to soften. However, the Fed is expected to balance rate cuts with ongoing inflation concerns, suggesting a cautious path forward.

Nvidia Slides on China Chip Ban While Walmart Lifts Dow

Daily NVIDIA Corporation

Nvidia shares slipped over 1% after reports that China banned domestic tech firms from purchasing its chips, putting pressure on the semiconductor sector.

Dow Jones: Blue Chip Average Gains on Walmart Surge, Nvidia Slides on China Ban_2

Daily Walmart Inc.

Meanwhile, Walmart surged nearly 2%, hitting a record high. The retailer was buoyed by expectations that lower rates could support consumer spending.

Other strong retail performers included Dillard’s, Buckle, and Casey’s General Stores, all notching 52-week highs. The broad retail rally helped support the Dow’s gains even as tech dragged on the broader market.

Retail ETF Hits 20-Month High—Are Consumers Coming Back?

Daily SPDR S&P Retail ETF

The SPDR S&P Retail ETF (XRT) climbed 1% to its highest level since January 2022, now up nearly 5% for the month. If the rally holds, September would mark the fund’s fifth consecutive monthly gain—its longest streak since mid-2020.

Investors are clearly betting on rate cuts fueling a consumer rebound, with names like Victoria’s Secret, Dollar Tree, Carvana, and Best Buy pushing the sector higher.

Market Forecast: All Eyes on the Fed’s Dot Plot and Powell’s Tone

Traders will closely parse the Fed’s updated Summary of Economic Projections and Chair Powell’s comments for signs of how far and fast rate cuts could go. While a single cut is priced in, future decisions may depend heavily on inflation prints and labor market performance in the weeks ahead. Expect volatility as markets recalibrate based on the Fed’s tone and the path it signals for monetary policy through year-end.