[{"category":{"name":"Trending News","exported_url":"trending-news"},"id":"610908cd-a4ba-457b-921a-158c914e2e7b","updated_at":"2024-01-15T05:07:37.760144+00:00","account":{"firstName":"Marigold","lastName":"Vance"},"description":"Receive a weekly market summary covering index performance, sector trends, industry insights, critical news, broker rating shifts, and earnings impact on both stock and crypto markets.","sapo":"Stay informed wiht our weekly recap: Stocks face mixed sectoral performance and cautious sentiment as earnings season begins, while the crypto market surges with Bitcoin ETF approval and Shiba Inu's token burn rate spike.","title":"Top Financial News For The Week Ending January 14, 2024","content":"

Key takeaways:

Mixed sectoral performance, with tech, communication, and consumer sectors leading, while energy and finance lagged.
Q4 earnings season began with major companies reporting, including Bank of America and Boeing, but cautious sentiment prevailed.
Investors adjusted rate cut expectations with a 79.4% probability of a 25 bps rate cut in March, influencing Treasury yields.
SEC's approval of spot Bitcoin ETFs boosted crypto optimism, with major firms like Ark 21 and BlackRock joining the race.

Top Stock News:

1. Sectoral Performance Insights

Sectoral performance varied during the week, with certain sectors outperforming others. The leading sectors included information technology (+4.9%), communication services (+3.4%), and consumer discretionary (+1.5%), driven by mega-cap constituents. In contrast, the energy sector experienced the most significant decline (-2.4%), while the financial sector also underperformed (-0.5%), impacting overall market dynamics.

Weekly Market Stats

Weekly Market Stats. Source: Edward Jones

2. Earnings Season Kickoff and Corporate Updates

The week commenced with the initiation of the Q4 earnings reporting season, featuring major companies like Bank of America (BAC), Wells Fargo (WFC), JPMorgan Chase (JPM), Citigroup (C), UnitedHealth (UNH), and Delta Air Lines (DAL). However, the market responded with negativity to these reports, setting a cautious tone. Boeing (BA) faced a substantial setback due to the grounding of 737 MAX 9 jets following an Alaska Airlines (ALK) flight incident.

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3. Rate Cut Expectations and Market Sentiment

Despite mixed economic data, investors adjusted their rate cut expectations, reflecting skepticism about a significant inflation resurgence. The market now assigns a 79.4% probability of a 25 basis points rate cut at the upcoming March FOMC meeting. This sentiment shift impacted the Treasury market, with the 2-year note yield dropping 24 basis points to 4.15% and the 10-year note yield falling by nine basis points to 3.95%. These adjustments occurred while the market hovered near all-time highs in the S&P 500 and Dow Jones Industrial Average.

4. Global Economic Prospects and Domestic Indicators

The market received support from the World Bank's Global Economic Prospects report, maintaining India's economic growth forecast at 6.3% for FY24. This reaffirmed India's position as one of the world's fastest-growing economies. Domestically, net direct tax collection recorded a robust 19.41% increase, reaching Rs 14.70 lakh crore, providing further positive momentum to the market.

5. Key Economic Data Highlights:

Economic data releases delivered mixed signals. The December Consumer Price Index (CPI) reported a slightly higher inflation rate at 3.4%, up from 3.1% in November, while the core CPI showed a marginal deceleration to 3.9%. Weekly initial jobless claims remained below recessionary levels at 202,000. Additionally, the December Producer Price Index (PPI) was cooler than anticipated, posting a -0.1% change, while the core PPI remained at 0.0%. These data points prompted a reassessment of rate cut expectations.

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Top Crypto News:

1. Crypto Headlines of the Week: SEC Approves Spot Bitcoin ETFs with Key Players Joining

The SEC's approval of spot Bitcoin ETFs ignited optimism across the cryptocurrency space this week. Amid speculations, the SEC gave the green light, boosting crypto market enthusiasm. Notably, Ark 21 and BlackRock cut their ETF fees, while VanEck and WisdomTree entered the race. Major investments were made by VanEck, BlackRock, and Bitwise, and Grayscale led the way with its approval, followed by ten more products, marking a significant milestone in the crypto world.

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2. SEC's Twitter Account Faces Security Breach

In an unexpected turn of events, the SEC's official Twitter account fell victim to a security breach, resulting in a false announcement regarding the approval of Bitcoin ETFs. The misleading tweet was swiftly retracted, but it managed to create confusion and excitement within the crypto community. SEC Chair Gary Gensler later clarified that no such approval had been granted, highlighting the importance of cybersecurity in the digital age.

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3. Cathie Wood's Revealing Investment Choices

Renowned for her innovative investment strategies, Cathie Wood, CEO of ARK Investment Management, made a significant revelation about her personal financial portfolio. For the first time, Wood disclosed that a substantial portion of her personal net worth is invested in Bitcoin. She clarified that her personal investments encompass both her firm's private funds and cryptocurrencies, with Bitcoin being a primary component of her financial holdings. This disclosure shed light on the growing institutional interest in Bitcoin.

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4. Crypto Market Euphoria Following Bitcoin ETF Approval

The crypto market witnessed a euphoric surge in the wake of U.S. regulators' approval of Bitcoin ETFs. Notable financial institutions, including BlackRock, Fidelity, and Grayscale, were among the dozen companies seeking approval to establish BTC ETFs. The announcement of the SEC's decision ignited a remarkable rally in Bitcoin's price, propelling it past the $47,500 mark. This bullish momentum subsequently triggered a broader rally in various altcoins, signifying the positive impact of regulatory developments on the crypto market.

5. Shiba Inu's Astonishing Token Burn Rate Surge

Shiba Inu, often touted as the "Dogecoin killer", made headlines with an astonishing surge in its token burn rate. In a span of just 24 hours, the token burn rate skyrocketed by an astounding 27,500%. This surge in token burn activity involved the movement of approximately 9 billion SHIB tokens into a designated "dead wallet." This strategic move effectively reduced the circulating supply of SHIB, contributing to heightened market dynamics and speculation around the token's future.

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Top Financial News For The Week Ending January 14, 2024

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