This week ahead || 03 May - 06 May 2022
NEWS
The week ahead: May 2
Rate hike bonanza: As we mentioned earlier, Fed Chair Jerome Powell is expected to announce a 50 basis-point increase of interest rates on Wednesday, which would be the biggest rate hike in two decades. But inflation isn’t just an American problem—at least 12 other central banks will give their policy updates this week, many of which will likely include rate hikes.
Read about it here.
Stocks rise, tech shares rebound as traders look ahead to Fed, earnings
U.S. stocks turned higher in the first session of May following one of the worst monthly performances for the S&P 500 since the depths of the pandemic in 2020.
The S&P 500, Dow and Nasdaq turned positive in the final hour of trading on Monday. U.S. crude oil prices reversed earlier declines to hover above $105 per barrel, and the benchmark 10-year Treasury yield rose to 3%, or its highest level since December 2018.
Read about it here.
Dow Jones Futures: What To Do As New Stock Market Rally Attempt Begins; Fed Meeting Next
Dow Jones futures were little changed after a new stock market rally attempt began Monday, as the major stock indexes rebounded from new correction lows. The 10-year Treasury yield briefly topped 3% for the first time since December 2018. Next up, the Federal Reserve's two-day meeting kicks off Tuesday.
Read about it here.
Rocky stock market faces Fed test with eyes on tightening plans
A volatile stock market faces a critical test next week, when the U.S. Federal Reserve is expected to raise interest rates and give more insight on its plans for tightening monetary policy to fight surging inflation.
Worries over an increasingly hawkish Fed have helped drag the benchmark S&P 500 index down 13.3% so far in 2022, , its steepest four-month decline to start any year since 1939.
Read about it here.
Interesting reads
Warren Buffett Stocks: What's Inside Berkshire Hathaway's Portfolio?
You need to keep up on Warren Buffett stocks, because while the Berkshire Hathaway (BRKB) chief sticks to a winning investing formula, that doesn't mean sitting still.
In the first quarter, Berkshire Hathaway significantly increased its Chevron bet. The company's Q1 report Saturday showed that its Chevron (CVX) stake jumped in value to $25.9 billion vs. $4.5 billion at the end of 2021. It's now among the four largest positions in Berkshire's portfolio by value, along with Apple (AAPL), Bank of America (BAC) and American Express (AXP). The Buffett-led company also reportedly bought more Apple stock and Occidental Petroleum (OXY) in Q1.
Read about it here.