| ▼ S&P 500 |
4,267.52 |
-0.38% |
| ▼ Nasdaq |
13,104.90 |
-1.29% |
| ▲ Dow |
33,665.02 |
+0.27% |
| ▲ 10-Year |
3.791% |
+0.091% |
| ▲ Oil |
72.61 |
+1.21% |
| ▼ Gold |
1,955.70 |
-1.30% |
*All data as of the previous day’s market close.
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Bank of Canada hikes another 25 basis points, bringing key rate to 4.75% (2 min read)
The Bank of Canada unexpectedly raised its key interest rate by another 0.25% after pausing the increase for three months. The key rate now stands at 4.75%, the highest level since May 2001. The decision was driven by the resilience of the Canadian economy which led to inflation rising again in April. The central bank cited strong GDP growth, rebounding service demand, a resurgent housing market, and a tight labor market as factors supporting the rate hike. Analysts believe further rate hikes may be possible due to sticky inflation and ongoing excess demand.
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China’s exports plunge by 7.5% in May, far more than expected (2 min read)
China's exports experienced a significant annual decline of 7.5% in May, the first drop since February. The figures were worse than expected and indicated subdued global demand for Chinese goods. The decline in exports to the US was particularly steep at 15.1%. However, the country’s imports began to stabilize, dropping by only 4.5% in May compared to a year ago, suggesting signs of recovery in domestic demand. Some economists predict that imports will continue to recover in the coming months as reopening efforts help boost the economy.
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Amazon is pursuing ‘too many ideas’ and needs to focus on best opportunities, analyst says in letter to Jassy (3 min read)
In an open letter, Bernstein analysts said Amazon has become too unfocused and is missing out on opportunities in its core businesses. While the company remains dominant in e-commerce and cloud computing, it has spent heavily in other areas like healthcare, grocery, and satellite businesses without significant results. The analysts suggested that Amazon should refocus on its core strengths and divest or trim spending on these ventures. Amazon stock is up 50% this year but over a five-year period, it has been underperforming top peers by about 52%.
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Traders raise bets on stocks falling as S&P 500 nears new bull market (3 min read)
Investors are heavily betting against US stocks as the S&P 500 futures are currently 17.4% short. While stocks are nearing a bull market, the slow upward trend has left strategists divided on what comes next. Some are concerned about the breadth of the rally, potential declining earnings, and the impact of stricter Fed policy. However, other strategists are optimistic, raising their price targets and pointing to the AI surge as a driver of stock market resilience. Regardless of the outcome, the market is expected to remain volatile in the near term.
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Best Vanguard ETFs (5 min read)
This article ranks the top 7 Vanguard ETFs that are suitable as a core portfolio building block. It screens over 80 US-listed passively managed Vanguard ETFs based on broad diversity, AUM, and expense ratio. The top ETFs are Vanguard’s S&P 500 ETF, Total Stock Market ETF, Total Bond Market ETF, Total International Stock ETF, FTSE All-World Ex-US ETF, and Total World Stock ETF. More details on each ETF and its pros and cons are available in the article.
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Cathie Wood Boosts Coinbase Stake as SEC Crypto Crackdown Widens (2 min read)
Cathie Wood's Ark funds increased their holdings of Coinbase as the company faced accusations from the SEC of operating an unlawful exchange. Three Ark funds added 419,324 shares of Coinbase on Tuesday after it tumbles as much as 21% this week. Despite the SEC's allegations, Ark has been consistently adding Coinbase shares over the past year and is the fourth largest holder of the company. So far this year, their flagship fund, Ark Innovation ETF (ARKK), surged 37% and outperformed the broader indexes after plunging 67% last year.
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That's it for today! You can reply to this email if you have any comments or feedback.
Thanks,
Thomas
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