Hello readers,
Today's market update brings exciting news as stocks hit record highs amidst slowing inflation. The consumer-price index rose 3.4% in April, slightly slower than March and in line with economists' expectations. Core prices, excluding volatile food and energy categories, increased at the slowest year-over-year pace since April 2021. Traders are now penciling in a 35% probability of a rate cut in July, up from 27% on Tuesday.
All three major equity indexes hit record highs on Wednesday, led by the tech-heavy Nasdaq Composite, which gained 1.4%. The S&P 500 rose 1.2%, buoyed by interest rate-sensitive tech and utilities sectors, the top performing sectors of the index. The Dow Jones Industrial Average ended the day up 0.9%, or by 350 points.
The 10-year Treasury yield edged down 0.09 percentage point to 4.354%, marking the third consecutive trading day of declines. Meanwhile, the meme-stock rally that heated up on Monday and Tuesday reversed abruptly on Wednesday. GameStop and AMC Entertainment shed 19% and 20%, respectively.
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Is Roaring Kitty the Internet’s Warren Buffett? By Jon Sindreu
On Tuesday, shares in videogame retailer GameStop rose 60% to $49 a piece, having already gained 74% Monday. Those of AMC Entertainment were up 135% on the week at Tuesday’s close. This new rally was triggered by X user “Roaring Kitty,” who had been inactive for almost two years before posting a drawing of a man leaning forward on a chair. The account is associated with Keith Gill, a former financial consultant who first brought attention to GameStop two years ago with a series of videos analyzing its untapped potential.
Google Regains AI Initiative by Playing to Its Strengths By Dan Gallagher
Google has been seen as playing defense for much of the past 18 months after OpenAI launched ChatGPT in late 2022. But Google isn’t so easily displaced. The company whose name was added to dictionaries nearly 20 years ago as a verb for web search still powers more than 90% of the world’s search activity, according to data from Statcounter. Its Android mobile operating system also runs more than 70% of the world’s smartphones.
In Brief
Electric vehicle or hybrid? While car buyers debate the technologies’ relative merits, manufacturers need to invest in both. Power-hungry artificial intelligence’s effect on future electricity demand is starting to feel a lot closer to reality for power-plant owners.
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Today's Markets News
Tesla Hits the Road to Persuade Shareholders to Pay Elon Musk $46 Billion. Vanguard Names Former BlackRock Executive as CEO.
What's Coming Up
Thursday will bring the latest readings of initial jobless claims, housing starts, and industrial production. Walmart will report earnings that morning. Applied Materials will report after market close.
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