Transcription:
CONWAY GITTENS: I'm Conway Gittens reporting from the New York Stock Exchange. Here's what we're watching today on TheStreet.
stocks are coming off another record-breaking day, as the S&P 500 and Nasdaq hit record highs on Tuesday. Investors are feeling optimistic after Federal Reserve Chairman Jerome Powell warned that keeping rates too high for too long could hurt economic growth.
And in other news, federal regulators are banning a popular social media app from providing services to children under 18 for the first time ever. The Federal Trade Commission and the Los Angeles District Attorney's Office are banning the anonymous messaging app, 'NGL,' due to rampant cyberbullying on the platform.
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The FTC alleges that despite promoting the anonymous messaging app as a “safe place for teens,” NGL made false claims about its ai-powered content moderation.
The suit also alleges that NGL tricked users into paying for subscriptions by sending them fake computer-generated messages. It also claims that the app violated laws meant to protect children's data and that employees referred to paying customers as “suckers.”
The app, which launched in 2021, allows users to link their social media accounts so that friends and followers can ask anonymous questions. NGL is the internet abbreviation for the phrase “I'm not going to lie.”
NGL will pay $5 million to settle the lawsuit. While the company denies some of the lawsuit's allegations, its co-founder says he will use the settlement as an opportunity to improve its platform.
That's it for the daily roundup. From the New York Stock Exchange, I'm TheStreet's Conway Gittens.
Related: Health director general calls for warning labels to be placed on social media platforms
