S&P500: Traders Eye Fed Minutes as EBay Surges 8% on Meta Deal

EBay Jumps 8% as Meta Partnership Opens New Sales Channel; Traders Await Fed Minutes

EBay shares climbed 8% on Wednesday following Meta’s announcement that it will integrate eBay listings into Facebook Marketplace in select regions. The rally lifted eBay stock to its highest level since November 2021, standing out in an otherwise quiet market as investors awaited the release of the Federal Reserve’s December meeting minutes for insights into future interest rate policy.

The rollout, beginning with tests in Germany, France, and the U.S., will allow users to browse eBay listings directly through Facebook Marketplace, while transactions will still be completed on eBay’s platform. The collaboration is expected to help eBay attract more buyers by expanding the visibility of itsE listings.

Can the Partnership Revive eBay’s Growth?

The integration with Meta’s Marketplace comes as eBay faces increasing pressure from competitors like Amazon, Walmart, and Temu. Facebook’s own peer-to-peer selling feature has also diverted traffic from eBay, making the partnership a strategic move to regain lost ground.

EBay has recently pivoted toward niche markets, focusing on collectibles and luxury items to attract loyal buyers. CEO Jamie Iannone emphasized in an October interview that demand for refurbished goods and discounts had driven traffic to eBay, as inflationary pressures forced consumers to seek value. The expanded Marketplace exposure could further solidify this trend.

What Prompted Meta to Strike the Deal?

Meta’s decision aligns with efforts to address regulatory scrutiny in Europe. The European Commission previously fined Meta €797 million ($821 million) in November for anti-competitive practices, citing the bundling of Marketplace with Facebook as potentially harmful to rival platforms.

By allowing eBay listings, Meta is working to appease regulators while expanding Marketplace’s offerings. Meta stated it continues to appeal the decision but aims to comply by introducing measures that provide more opportunities for third-party sellers.

How Did Broader Markets Respond?

Overall, Wall Street remained subdued on Wednesday ahead of the Federal Reserve’s meeting minutes release. Mixed economic signals and ongoing concerns over potential trade policy shifts added to the cautious sentiment.

Eight of the eleven S&P 500 sectors posted gains, with healthcare leading the way. However, rising Treasury yields limited upside movement. Tech stocks delivered mixed performances—Microsoft rose 0.6%, Alphabet stayed flat, while Meta dipped 1%.

Outlook for Traders

The Fed’s next move on interest rates remains the central focus for traders. While the labor market’s resilience has kept the Fed from cutting rates, expectations for the first reduction hover around May or June. Minutes from the Fed’s latest meeting could offer further insight into inflation expectations and policy direction.

For eBay, the integration with Meta marks a potentially pivotal step in revitalizing growth. Traders will watch closely as the test rollout progresses, assessing whether the increased visibility can translate to higher transaction volumes and a stronger market presence.

More Information in our Economic Calendar.