Here are the most important news, trends and analysis that investors need to start their trading day:
1. Wall Street looks steady after two days of Fed-driven selling
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, March 29, 2022.
Brendan McDermid | Reuters
U.S. stock futures were relatively steady Thursday, as Wall Street tried to avoid a three-session losing streak. The Nasdaq led the selling over the past two days as the Federal Reserve started to strike a more hawkish tone — sinking 2.2% on Wednesday, a day after about a 2.3% drop.
- After a number of Fed officials called for more aggressive tightening to fight inflation, the central bank’s minutes from its March meeting indicated general agreement to shrink its massive balance sheet by $95 billion per month.
- The minutes also showed Fed officials were considering larger-than-usual rate hikes of 50 basis points after a 25 basis point raise last month, the first increase in more than three years.
2. Key Treasury yield spread remains inverted after jobless claims data
Historically, these inversions have happened before economic recessions. With the jobs market strong, the Fed may have room to slow the economy to fight inflation — threading the needle on its dual mandate of fostering maximum employment and controlling prices. The central bank is expected to hike rates at all six of its remaining meetings this year. The size of those increases are the real question.
3. Warren Buffett’s Berkshire Hathaway reveals major stake in HP
Warren Buffett at Berkshire Hathaway’s annual meeting in Los Angeles, California. May 1, 2021.
Gerard Miller | CNBC
Warren Buffett’s Berkshire Hathaway has initiated a major stake in tech hardware stock HP Inc., becoming the largest shareholder in the PC and printer maker. Berkshire purchased nearly 121 million shares of HP, roughly 11%, according to securities filings, a stake that was worth roughly $4.2 billion based HP’s closing stock price Wednesday. That’s before…
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