After a five-week winning streak, the major indexes took a hit last Friday. This downturn was attributed to higher-than-expected inflation data, fueling speculation about a potential delay in Federal Reserve interest rate cuts. The S&P 500 closed the week down by 0.42%,the Dow fell by 0.11%, and the Nasdaq dropped by 1.34%.
The inflation figures revealed a 3.1% year-over-year increase, surpassing the anticipated 2.9%, with core inflation also outstripping expectations at 3.9%. Moreover, the Bureau of Labor Statistics reported a 0.3% monthly increase in the Producer Price Index, raising concerns about the Fed’s 2% inflation target.
In response, market participants tempered their expectations for Federal Reserve rate cuts in 2024, lowering the projected total from 120 basis points to 95.
As part of its coverage of investor favorites, Benzinga highlighted the past week’s most bullish and bearish stories that merit a closer look.
Bullish Insights
In “Tesla Stock Pops On Filing Showing Elon Musk Owns 20.5%: Here’s What Happened,” Chris Katje discussed a 13G filing revealing that Elon Musk owns 20.5% of Tesla Inc. (TSLA), resulting in a modest stock uptick despite Musk’s unchanged ownership stake.
Neil Dennis’s article “These 4 AI-Related Stocks Outside Magnificent 7 Are Already Outperforming In 2024” highlighted four AI-related companies, including Palo Alto Networks and Arista Networks, which have surpassed the S&P 500 with substantial gains in 2024, propelled by their innovative AI and cybersecurity solutions.
Mehab Qureshi’s piece “Crypto Analyst Predicts Dogecoin To Kickstart Memeseason With A Pump To $0.10” featured a prediction that Dogecoin (DOGE/USD) will spearhead a memecoin surge, reaching $0.10 by May, fueled by a surge in major transactions and a significant transfer of 100 million DOGE to Robinhood.
Additional bullish perspectives from the past week include:
With A $1M Target For Bitcoin, Michael Saylor Reminds Everyone That ‘BTC Is Still Less Than $0.05M’ Today
Emerging Markets Guru Says ‘Time To Go Shopping For Hidden Gems At A Steal’ As He Sees Opportunities In Bruised Chinese, Hong Kong Stocks
2008 ‘Big Short’ Oracle Burry Bets Big On Chinese Giants, Backs Google, Amazon’s AI Wave
Bearish Forecasts
In “Josh Brown Says Market May Have ‘Topped’ For The Year As Nvidia Stock Has Become An Algorithm Casino ‘Freak Show’,” Adam Eckert conveyed Josh Brown’s suggestion that the market, particularly Nvidia Corp (NVDA), may have peaked for the year due to frenzied trading and extreme valuation increases.
Neil Dennis’s report “Disney Epic: Activist Shareholders Prepare For Boardroom Blitz” detailed the upcoming showdown on April 3, as Walt Disney Company (DIS) faces a pivotal vote, pitting CEO Bob Iger against hedge fund activists Nelson Peltz of Trian Fund Management and Jason Aintabi of Blackwells Capital. This conflict arises from dissatisfaction with the company’s recent performance.
In the piece “‘It’s Not That Decentralized’: SEC Chair Gary Gensler Hesitant On Bitcoin, Calls It ‘Just An Accounting Ledger’,” by Murtuza Merchant, SEC Chair Gary Gensler expressed skepticism about Bitcoin’s decentralization and raised concerns about its association with illicit activities during a CNBC interview.
Other bearish viewpoints from the past week include:
Economists Sound Alarm On Inflation’s Stubborn Grip: ‘No Chance Inflation Will Return To 2%’ Without New Rate Hikes
Market Correction Due: Stocks Are Running Out Of Reasons To Move Higher, Analyst Says
‘EV Winter’ Is Starting To Take A Toll On Rivian: Analyst Says 2024 Targets Are In Jeopardy
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