The U.S. stock market experienced a downturn following the release of high inflation data, resulting in concerns about potential delays in Federal Reserve interest rate cuts. This development contributed to the end of the five-week winning streak, with the S&P 500, the Dow, and the Nasdaq closing the week on a negative note.
The inflation figures, surpassing earlier forecasts, indicated a 3.1% year-over-year increase, alongside core inflation exceeding expectations at 3.9%. Furthermore, a notable monthly surge of 0.3% in the Producer Price Index added to apprehensions about the Federal Reserve’s 2% inflation target.
As a result, market participants adjusted their expectations for Federal Reserve rate cuts in 2024, lowering the anticipated total from 120 basis points to 95.
Benzinga, a prominent financial news source, provides insights into stock activity valued by a wide range of investors. Here are some of the notable highlights from last week.
Bullish Trends
The disclosure of Elon Musk holding a 20.5% stake in Tesla Inc. sparked a rise in Tesla’s stock value, despite no change in Musk’s ownership stake.
Several AI-related companies, including Palo Alto Networks and Arista Networks, outperformed the S&P 500 in 2024, driven by their innovative AI and cybersecurity solutions.
A prediction indicates that Dogecoin may lead a surge in memecoins, reaching $0.10 by May, attributed to an increase in major transactions and a significant transfer of 100 million DOGE to Robinhood.
Additionally, there were bullish calls for Bitcoin and opportunities identified in bruised Chinese and Hong Kong stocks.
Bearish Trends
Amid frenzied trading and extreme valuation increases, some analysts expressed concerns that the market, particularly Nvidia Corp, may have peaked for the year.
A critical showdown looms for Walt Disney Company on April 3, as CEO Bob Iger faces pressure from activist shareholders over board seats amid dissatisfaction with the company’s performance.
SEC Chair Gary Gensler cast skepticism on Bitcoin’s decentralization and raised concerns about its association with illicit activities during a CNBC interview.
Furthermore, bearish sentiments were expressed regarding inflation, stock market corrections, and the impact of “EV Winter” on Rivian.
