Author: Pooja Rajkumari

The widely-used social media platform, TikTok, owned by China’s ByteDance, is teetering on the edge of a ban in the United States. The ban can only be averted if a last-minute deal is reached with a U.S. investor or if the Supreme Court intervenes.

What Happened: In anticipation of the ban, TikTok plans to cease operations in the U.S., although users can still download their personal data. App stores managed by Apple Inc. (NASDAQ:AAPL) and Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) will remove TikTok, preventing updates and disrupting the app’s new video content.

Additionally, Oracle Corp. (NYSE:ORCL) might stop hosting TikTok data.

Users have been exploring potential workarounds, such as using virtual private networks (VPNs) to conceal their location. According to Google Trends data, searches for “VPN for TikTok” have risen by almost 800% in the past week.

However, TikTok has other ways to determine user locations, including accessing geolocation data from devices, according to Jason Kelley, director of activism at the Electronic Frontier Foundation, Reuters reported.

Some users have considered using a web-based version of TikTok through a browser with a VPN. However, the web version lacks many app features and may fail to deliver a personalized experience, especially if creating a new account is required. “It won’t be a good service for you, and it won’t be a profitable service for them,” Kelley said.

Experts have suggested using a VPN or changing phone settings to another country such as Canada as possible solutions, but these methods are not straightforward. Kelley pointed out that TikTok can still identify user locations.

Joseph Lorenzo Hall of the Internet Society humorously mentioned that influencers might need two phones due to the ban.

Why It Matters: The impending TikTok ban has significant implications for its 170 million U.S. users. The Biden administration has decided not to enforce the ban, leaving the decision to the incoming Donald Trump administration. This decision could impact the app’s future operations in the U.S. and its users.

Meanwhile, Jimmy Donaldson, known as MrBeast, is in discussions with several billionaires about potentially acquiring TikTok to prevent its shutdown. This move highlights the app’s popularity and the lengths to which individuals are willing to go to keep it operational in the U.S.

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• 5 Things Investors Need To Know About Scott Bessent’s Economic Policies As He Faces Senate Grilling For Treasury Job

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

Image via Shutterstock

In a recent discussion, Morgane Delledonne, head of investment strategy at Global X ETFs, shed light on the Federal Reserve’s interest rate policy and its effect on the markets.

What Happened: Delledonne, in an interview with CNBC on Monday, highlighted the gap between the Federal Reserve’s goals and the expectations of the market.

“What the Fed wants and what the market wants are two different things,” she explained.

She pointed out that the Federal Reserve heavily depends on economic data, which currently suggests a robust economy despite some weakening in the job market. However, Delledonne emphasized that core inflation continues to remain high.

Delledonne opined that the Fed is unlikely to risk the downward inflation trend by being overly aggressive.

“I don’t see the balance of risks pointing to a 50 basis points cut,” she said. She also suggested that such a move by the Fed could signal to the market that a recession risk is imminent.

See Also: Nasdaq, S&P 500 Futures Sag In Fed Decision Week: What’s Going On Techs: Fund Manager Sees Near-Term Corrections As Buying Opportunities

Why It Matters: The Federal Reserve’s interest rate policy significantly influences the financial markets. The Federal Reserve was set to cut the federal funds rate for the first time in over four years. The market participants were leaning towards a larger 50-basis-point cut, with a 65% probability.

Furthermore, the performance of the S&P 500 following the Federal Reserve’s rate cuts largely depends on whether the economy is in a recession or not. The stock markets typically experienced significant declines after the Fed’s initial rate cut during recessionary periods.

Read Next:

• Elizabeth Warren Urges Fed To Slash Rates By 0.75%; Veteran Investor Warns Even 0.5% Cut Could ‘Reduce Trump’s Chances Of Winning’

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

Illustration created using artificial intelligence via MidJourney.