Consumer Sentiment and Inflation Concerns
According to new data from the University of Michigan indicates a dip in consumer sentiment for April, with a headline figure of 77.2, down from 79 in March. Inflation expectations for the next year have risen slightly to 3.2%, but the 5-10 year outlook remains stable at 3%. This follows the Fed’s core PCE index reading of 2.8% year-over-year, signaling persistent price pressures ahead of the Fed’s rate decision next week.
Tech Earnings Surge
Tech giants Alphabet and Microsoft are experiencing significant gains due to their investments in AI infrastructure, driving growth in their cloud businesses. Alphabet shares have surged over 9%, while Microsoft is up more than 2.5%. Conversely, Intel’s shares have plummeted nearly 11% due to a bleak forecast, marking its steepest decline in almost four years.
Oil Giants Disappoint
Despite rising oil prices, ExxonMobil and Chevron reported underwhelming earnings. Exxon shares have dropped 3.5%, with Chevron down nearly 1%.
Campus Protests and International Affairs
Campus Unrest Over Gaza Conflict
Protests over the Gaza conflict continue across various U.S. universities. Emory University saw rubber bullets used against demonstrators, resulting in over two dozen arrests. Ohio State University experienced police clashes with protestors, and Columbia University is negotiating with protesters camped on campus for ten days. Despite these actions, experts like Wendy Schiller from Brown University note that these protests have not swayed U.S. policy, which continues to send aid to Israel.
Diplomatic Developments
Secretary of State Antony Blinken has urged China to leverage its influence to prevent Iran and its proxies from escalating the Middle East conflict. In a meeting with Chinese President Xi Jinping, Blinken also discussed trade issues, with Xi emphasizing that the U.S. should not hinder China’s growth and should avoid “vicious competition.”
Legal and Corporate Updates
Trump’s Legal Battles
Former President Donald Trump appeared in a Manhattan courtroom for his criminal hush money trial, amid the Supreme Court’s consideration of his claims of absolute immunity from prosecution. This decision could impact Special Counsel Jack Smith’s election interference case, with a ruling expected by late June. Meanwhile, Trump’s lawyers are challenging the testimony of former National Enquirer publisher David Pecker.
Tesla Under Investigation Again
The National Highway Traffic Safety Administration (NHTSA) has launched a new probe into Tesla’s autopilot system to determine if the December recall was sufficient, following additional crashes. Tesla shares have dipped nearly 1% amid this news.
Market Overview
Stock Market Highlights
The broader market is performing well, with the S&P 500 up 1.1% and the Nasdaq composite leading with a 1.9% increase. The 10-year Treasury yield stands at 4.64%.
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