The second quarter of the year has begun on a positive note for Wall Street, with the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all posting strong gains in the first quarter. Investors will be keeping a close eye on the latest inflation data released on Good Friday, as well as other economic data releases throughout the week, including the March jobs report on Friday. The markets will be reacting to these key data points as they continue to assess the overall economic outlook.
Inflation rose in line with expectations in February, with the personal consumption expenditures price index excluding food and energy increasing by 2.8% on a 12-month basis. The Federal Reserve’s preferred measure of inflation, Core PCE, rose 0.3% for the month and 2.5% on a 12-month basis, meeting estimates. This indicates that the Fed is likely to maintain its current policy stance at its upcoming meeting in May before considering any interest rate adjustments. The central bank targets an annual inflation rate of 2%, but Core PCE inflation has not reached that level in three years.
Speculation is mounting about who will succeed Bob Iger as the CEO of Disney, with Dana Walden, co-chair of Disney Entertainment, emerging as a potential frontrunner. Succession at Disney has been a major story, as Iger has delayed his retirement multiple times and returned to the CEO role after his initial successor was fired. More than 20 colleagues and friends have weighed in on Walden’s qualifications and the likelihood of her taking over from Iger, as investors and industry insiders eagerly await an official announcement.
The price of gold reached a new record high on Monday following the release of the latest inflation data. Investors are anticipating a potential rate cut by the Fed in June, which would reduce the opportunity cost of holding gold. Spot gold hit an all-time high of $2,262.19 before retreating slightly, while U.S. gold futures climbed 1.7% to $2,275.60. The precious metal continues to be a safe haven asset for investors seeking protection against inflation and market volatility.
FTX founder Sam Bankman-Fried was sentenced to 25 years in prison for his involvement in securities fraud that led to the collapse of his cryptocurrency exchange and a related hedge fund, Alameda Research. The prosecution had sought a longer sentence, while the defense had requested a shorter term. In addition to the prison sentence, Bankman-Fried was ordered to pay $11 billion in forfeiture to the U.S. government. The judge highlighted the lack of remorse shown by Bankman-Fried and expressed concerns about his future behavior.
Overall, as investors navigate the new quarter, they will be closely monitoring market reactions to key economic data points, including inflation figures and the March jobs report. Speculation about succession at Disney and the impact of potential Fed policy changes on the price of gold will also be key areas of focus. The sentencing of FTX founder Sam Bankman-Fried serves as a reminder of the risks associated with financial misconduct and the potential consequences for individuals and companies involved in fraudulent activities.
