Federal Reserve Dismisses Rate Hike Fears, Labor Market Cools, Apple Lures Investors With Record-Breaking Buyback: This Week In The Market

The stock market breathed a sigh of relief as Fed Chair Jerome Powell eased fears of interest rate hikes amid recent inflation surprises.

The Fed now plans to hold rates steady longer to ensure inflation moves toward the central bank’s 2% target.

In April, the labor market displayed some signs of cooling, with the pace of new job creation dropping compared to March, and the unemployment rate unexpectedly rising. The earnings season remains optimistic, with half of S&P 500 companies already having reported, and nearly 80% of them exceeding earnings expectations. Apple Inc. AAPL made headlines Thursday with a double beat announcement and a record $110-billion stock buyback program.

Sell In May?

The “Sell in May and Go Away” trading strategy is put to the test in election years. Contrary to popular belief, historical data reveals that these periods do not consistently coincide with increased market volatility. In fact, the returns from May through November tend to be positive and even more substantial during years when an incumbent president seeks reelection.

Tesla Hype Cools

Goldman Sachs issued a cautionary note to investors regarding Tesla Inc.’s TSLA self-driving technology, stating it hasn’t reached eyes-off capabilities yet. The Wall Street firm's tempering of excitement around self-driving underscores the ongoing challenges and regulatory hurdles Tesla faces in achieving full autonomy.

Housing Entry Barriers

Treasury Secretary Janet Yellen highlighted the severe challenges first-time homebuyers face in today’s market, describing entry as almost impossible. Rising costs and economic pressures have notably tightened the housing market, putting homeownership out of reach for many new entrants despite ongoing governmental efforts to provide support.

Kiyosaki’s Crypto Confidence

Robert Kiyosaki, the author of "Rich Dad Poor Dad," recently disclosed his investment approach to Bitcoin in the face of the cryptocurrency market’s downturn. Kiyosaki advocates buying during the dip, emphasizing his optimistic outlook on Bitcoin‘s BTC/USD future potential and resilience, despite the prevailing market instability.

Top 1% Retirement Goals

Are you on track to join the wealthiest retirees? A recent study revealed the exact retirement savings amounts held by the top 1% at different life stages. This benchmarking could serve as a motivational tool or a reality check, helping individuals gauge their financial planning for retirement.

Now Read: ‘Why Isn’t Buffett Calling Cook Out?’ Question Redditors On Apple’s Largest-Ever Share Buyback

Image created using artificial intelligence via Midjourney.