US stocks fell across the board, while international gold prices continued to hit new highs!

Due to pressure from factors including inflation, the banking sector, and international geopolitical issues, US stocks fell across the board on Friday, with the Dow dropping over 500 points at one point, and the S&P 500 index posting its worst single-day performance since January. By the close of trading that day, the Dow fell by 475.84 points, a decrease of 1.24%, to close at 37983.24 points; the Nasdaq fell by 267.10 points, a decrease of 1.62%, closing at 16175.09 points; and the S&P 500 index fell by 75.65 points, a decrease of 1.46%, closing at 5123.41 points.

This week, the Dow Jones Industrial Average fell by 2.37%, the Nasdaq fell by 0.45%, and the S&P 500 Index fell by 1.56%. Among them, the Dow Jones had its worst weekly performance since March 2023, and the S&P 500 Index had its worst weekly performance since October. In the bond market, influenced by inflation data, the yield on the 10-year US Treasury fell by over 7 basis points to 4.501%, while the yield on the 2-year US Treasury fell to 4.882%. This week, the yield on the 10-year US Treasury rose by 12.2 basis points, and the yield on the 2-year US Treasury rose by 15.2 basis points.

BlackRock CEO: The Federal Reserve is still expected to cut interest rates twice this year. Economic data shows that the University of Michigan's survey data for April shows that the US consumer confidence index fell to 77.9, below market expectations and previous levels. Consumer's 1-year inflation expectations are at 3.1%, reaching a new high for the year; 5-year inflation expectations are at 3%, reaching a new high for five months. Kansas City Fed President Jeffrey Schmid stated that the resilience of the US economy has brought uncertainty to the interest rate path. He called for patience before adjusting interest rates.

BlackRock CEO Larry Fink predicts that the Federal Reserve is still likely to cut interest rates this year, but is unlikely to reach its 2% inflation target. Fink stated that inflation has moderated, but he is skeptical about it reaching the Fed's target level. He expects the Fed to cut interest rates twice this year. On the other hand, Morgan Stanley's performance outlook is disappointing, with the company's stock price falling by 6.47% on Friday, closing at $182.79 per share.

Although the company's revenue and earnings in the first quarter exceeded market expectations, the performance guidance for 2024 disappointed the market. In the first quarter, JPMorgan Chase reported earnings per share of $4.44, above market expectations of $4.11; revenue was $42.55 billion, higher than the market's expectation of $41.85 billion. With the acquisition of First Republic Bank last year, the bank's profit in the first quarter increased by 6% year-on-year to $13.42 billion. Excluding the impact of the Federal Deposit Insurance Corporation (FDIC) special assessment fee increase of $725 million, earnings per share would have increased by 19 cents.

At the same time, thanks to higher interest rates and interest income from a larger loan balance, JPMorgan Chase's revenue increased by 8% year-on-year to $42.55 billion. However, in its 2024 performance guidance, JPMorgan Chase expects net interest income to be around $90 billion, which is in line with previous statements, disappointing some investors. In addition, on the same day that the financial report was released, Bank of America's stock price fell by 0.39% to $56.47 per share. Citigroup fell by 1.7%, closing at $59.68 per share. Bank of America, Goldman Sachs, and Morgan Stanley will release their financial reports next week.

Given that small banks typically have a greater risk exposure in commercial real estate, it is expected that the performance of large banks will be better than that of small banks. According to data from LSEG, based on the comprehensive growth rate, it is expected that corporate earnings will increase by 2.7% year-on-year, while revenue will increase by 3.3% year-on-year. Among them, the communication services industry is expected to achieve the largest year-on-year revenue growth, possibly close to 27%. According to market news, online ticket resale company StubHub plans to conduct its initial public offering in the summer, with a target valuation of no less than $16.5 billion, which is the valuation it had at the end of 2021 during its private financing.

In 2007, StubHub was acquired by eBay for $310 million, and in 2020, it was repurchased by co-founder Eric Baker through his new company Viagogo for $4 billion.