"Say Cheese!"

Hi There! Every morning, I take a moment to write down something I'm grateful for—it's a simple routine that really keeps me centered. Today, I'm especially grateful for my closest friends, particularly those who aren't afraid to offer me straightforward advice. They enrich my life, enabling me to pursue what I'm most passionate about—bringing out the best in everyone around me. There's real truth in the saying, “You are the sum of the five people you hang around the most.” This daily practice has shown me just how much the people I surround myself with influence my life. Reflecting on this today reminds me of the strength we draw from our relationships and how profoundly they shape us.

Alright, let’s dig in!

Last week saw notable volatility, with the S&P 500 and Nasdaq enduring their sixth straight day of declines, their longest losing streak since October 2022. The S&P 500 and Dow posted their largest weekly percentage losses since March 2023, and the Nasdaq recorded its biggest weekly drop since October 2022.

Tech Stocks Retreat:

The technology sector was particularly hard-hit, with significant losses across major stocks:

• Nvidia (NVDA) saw a sharp decline of 10%.

• Amazon (AMZN) dropped more than 2%.

• Apple (AAPL) decreased by 1%.

Investors are adjusting to the reality of "higher-for-longer" interest rates, with growing consensus that rate cuts may not occur until possibly 2025.

Netflix Faces Investor Skepticism:

Netflix's announcement about halting the quarterly reporting of subscriber growth spooked investors, leading to a 9.1% drop in its stock price last Friday, closing at a significant loss. This was their worst intra-day decline since the catastrophic 35.1% drop experienced on April 20, 2022, highlighting ongoing stock's ongoing volatility.

Interest Rates and Inflation:

The U.S. 10-year yield saw significant movement, peaking near 4.63%, influenced by geopolitical tensions and shifting market sentiments. Federal Reserve officials' hawkish remarks in response to unexpected inflation spikes further complicated the interest rate landscape.

Commodity Insights:

Oil prices experienced fluctuations due to geopolitical unrest:

• Brent crude futures (BZ=F) increased by 0.2%, reaching around $87 per barrel.

• West Texas Intermediate crude futures (CL=F) were up by 0.5%, to approximately $83 per barrel.

Despite these increases, both benchmarks posted their biggest weekly loss since February, driven by an ebbing of immediate conflict fears between Iran and Israel.

Crypto Developments:

The Bitcoin halving event significantly impacted the cryptocurrency market:

• The reward for mining new blocks was halved from 6.25 to 3.125 bitcoins.

• Bitcoin price remained relatively stable, hovering around $63,000.

• The launch of the Runes protocol led to a spike in transaction fees due to increased activity on the Bitcoin blockchain.

 Here are other key highlights from last week:

• BlackRock IBIT ETF close to overtaking Grayscale GBTC

• Telegram commits to TON blockchain, plans to support tokenized emojis

• Defi-focused Berachain raised $100M in funding round

• Accounting firm Ernst & Young to use Polygon PoS for business contracts

All eyes are on the magnificent seven this week:

Key U.S. Economic Data:

• Services PMI reported a drop below expectations, signaling potential declines in private services payrolls.

• Manufacturing PMI also fell, indicating slowing economic activity.

• New Home Sales rose unexpectedly to $693,000 in March, surpassing analysts expectations.

• Durable Goods Orders exceeded forecasts with a 2.6% increase.

• Q1 GDP and other data such as Jobless Claims and Pending Home Sales on Thursday and Friday will further illuminate economic trends.

Tech Giants’ Earnings:

Earnings from Tesla, Meta, Microsoft, and Alphabet are highly anticipated, as these companies significantly influence the S&P 500:

• Tesla reported a surprising 9% stock jump despite missing Q1 earnings, buoyed by news of increased production of cheaper models and a new ride-hailing service.

• Meta faced a drastic $250 billion market cap reduction following a weaker-than-expected Q2 revenue outlook.

Other anticipated earnings releases this week are outlined in the chart below.

Key Global Economic Events:

• Euro Area and UK PMI Reports, and Germany's ifo Business Climate Report will provide insights into European economic health.

• Australia's CPI and Canada's Retail Sales will offer additional perspectives on global economic conditions.

Trading Tip: In a highly up trending market weekly low is achieved on Tues!

Week 4/14/24 - 4/20/24 Recap

Special Tools and Strategies

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Disclaimer: This newsletter is strictly educational. The information this report provides does not constitute investment, financial, trading, or any other advice. You should not treat any of the report’s content as such. Please be careful and do your research.