Public Markets 8-Hour Briefing
×Market Performance
US stocks ended mixed with the Dow climbing while the S&P 500 and Nasdaq slipped as Nvidia's earnings left investors wanting more. The S&P 500 has been stuck in a range for four months, with investors paying up to protect against potential downside moves, which strategists see as a buy signal. Nvidia CEO Huang pushed back against the "Saa Spocalypse" narrative, calling it a "deep misunderstanding" as the company's stock failed to rally despite posting what analysts called its "largest, cleanest beat" ever.
Federal Reserve & Monetary Policy
Federal Reserve Governor Stephen Miran said he thinks the Fed needs to cut interest rates by about a percentage point this year, suggesting four rate cuts are appropriate. This comes as investors watch for any signals about the central bank's path forward amid market volatility and economic uncertainty.
Technology & AI Sector
Morgan Stanley reports that hyperscaler AI spending is set to exceed dot-com peak levels, highlighting continued massive investment in artificial intelligence infrastructure. Meanwhile, Nvidia faces questions about whether great results are good enough anymore as AI fears shift from growth concerns to AI's destabilizing impact on traditional software companies. The software sector has seen a $1.6 trillion meltdown as concerns over AI's threat hit shares of companies like Salesforce and Adobe hard.
Corporate Developments
Blackstone began marketing bonds due in 2029 for its private credit fund, a day after disclosing continued signs of stress in one of its largest investments. Victory Capital submitted a bid to acquire Janus Henderson that it says is higher than the $7.4 billion offered by Nelson Peltz's Trian Fund Management. Ocado plans to cut 1,000 jobs and restructure its technology unit, warning that earnings from its licensing business will be below expectations after clients scale back online grocery plans.
International Markets
Abu Dhabi is set to issue two benchmark-sized dollar bonds in its first foray into debt markets of the year, joining an emerging market bond rush. Argentina stocks are missing out on a Latin American equity surge as past market euphoria over President Milei's election victories fizzles amid concerns over weak corporate earnings growth. Colombia dollar bonds fell across the curve and the peso led emerging-market losses after a new poll showed leftist Senator Iván Cepeda with a wide lead in the presidential race.
Financial Services
HSBC cut US exposure while boosting emerging market equities. TD Bank quarterly earnings were lifted by growth across operations. Royal Bank of Canada earnings rose in the first quarter despite an elevated credit-loss provision, with growth in wealth management, personal banking, and capital markets. WPP overhauled its structure and slashed dividends in a turnaround plan after reporting its worst annual fall in key top-line metrics since the Covid-19 pandemic.
Energy & Commodities
Oil supertankers have become the hottest commodity with a 600% gain as high shipping costs become a concern for producers and refiners. Saudi Arabia and the UAE boosted crude shipments amid fears of a US strike on Iran, with contingency plans drawn up for potential disruption to oil flows. LPG prices surged to the highest in almost a year following an outage at an export terminal in Saudi Arabia.
Fixed Income & Currency Markets
US Treasury dependence on closest allies to fund its swollen debt burden is exposing vulnerabilities in the $30 trillion market. BlackRock says Japanese government bonds can offer yields of around 6% for dollar-based investors willing to take a bet on long-dated debt. Emerging market local-currency bonds are becoming less sensitive to swings in US Treasuries as investors focus more on yield advantage.