Issue #2

Welcome to the second edition of our newsletter! 

Here’s a quick overview of the latest market developments, investment highlights, and economic insights.

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Market Recap: Rebound Amid Cautious Optimism

Market Recovery: Wall Street managed to break a four-week losing streak with a slight advance, led by the S&P 500 edging into positive territory. The Federal Reserve's announcements played a pivotal role, holding interest rates steady and offering a dovish outlook which reassured investors. The S&P grew by 0.5%, Nasdaq by 0.2%, and Dow by 1.2% over the week.

Fed's Influence: Chair Jerome Powell’s remarks regarding the transitory nature of tariff-induced inflation brought relief, easing concerns of lasting economic impact from trade policies.

Corporate Spotlight: Earnings reports from FedEx, Micron Technology, and Nike drew eyes. FedEx adjusted its revenue forecasts downward, Micron hinted at margin pressures, and Nike released softer-than-expected guidance.

Nvidia's AI Push: Nvidia's GTC conference underscored its AI leadership with its new Rubin GPUs, though skepticism about AI's profitability still looms.

Alphabet’s Bold Move: Alphabet's planned acquisition of cloud security firm Wiz for $32 billion highlights its aspirations in cloud security, despite regulatory hurdles.

Market Index Summary: Over the week, the S&P advanced by 0.5%, the Nasdaq by 0.2%, and the Dow by 1.2%.

Economic News Briefs

Wholesale Egg Prices: A marked decline in wholesale egg prices this month isn't yet mirrored in consumer prices due to lagging retail adjustments, drawing DOJ's focus on potential price manipulation.

Rising Rents: Rental inflation continues to rise rapidly worldwide, posing challenges for monetary policy, given the slow adjustment of rents to economic changes.

Gold Rally: Gold prices surged by 15% YTD, reflecting its appeal as a safe haven amid geopolitical tensions and inflation concerns.

Looking Ahead: Key Events and Anticipations

Weekly Economic Indicators: Key data are on the horizon, including Germany’s Ifo Business Climate indicator, UK's inflation report, US GDP growth assessment, and various retail and personal income figures.

Earnings Season Continues: Watch for financial disclosures from major companies like McCormick, GameStop, and Dollar Tree.

CoreWeave IPO: Eyes on CoreWeave's upcoming Nasdaq launch, a significant event for the AI sector.

Europe and US Inflation Tracking: With dynamic updates, tracking inflation is critical as both regions experience evolving economic pressures.

Overall Thoughts 💭 

Amid global uncertainties, market fundamentals remain sound, even as stock prices face volatility. Keep an eye on emerging geopolitical tensions and domestic trade policies, notably developments involving Ukraine and Israel that could affect market stability.

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Disclaimer: This newsletter is a reflection of personal thoughts and is not intended as investment advice. Always perform your own due diligence before investing.