Stocks Rise Further As Fed's Inflation Data Stay Quiet, Bitcoin Attract Investors, New York Community Bancorp's Turmoil Resumes: This Week In The Markets

Equity markets continued their positive momentum, marking another week of gains since the rally began at the end of October 2023, buoyed by diminishing economic concerns.

The Federal Reserve’s preferred measure of inflation, the Personal Consumption Expenditure price index, fell as expected in January, allaying fears of a fresh acceleration.

The Nasdaq 100, as tracked by the Invesco QQQ Trust QQQ, soared past the 18,300 mark to achieve an unprecedented high. The S&P 500, as monitored through the SPDR S&P 500 ETF Trust SPY, surged above 5,100 points, also hitting record highs.

The majority of S&P 500 companies reported their quarterly results: 73% exceeded earnings-per-share expectations and 64% beat revenue projections.

Bitcoin BTC/USD once again captured the market’s spotlight by surpassing $60,000, marking its strongest performing week since March 2023.

NYCB Stock Plummets

New York Community Bancorp NYCB faced a new turmoil as it disclosed a “material weakness” in its internal controls related to loan review processes, compounded by the departure of its CEO. On Friday, the company’s shares dropped over 20%.

Musk Sues OpenAI

Elon Musk sued Sam Altman and OpenAI for allegedly shifting their focus to profit generation for Microsoft Corp. MSFT, betraying their foundational mission. This lawsuit claimed that the partnership with Microsoft has led OpenAI away from its initial commitment to open-source development in the field of Artificial General Intelligence.

Bitcoin ETFs Surge

Bitcoin ETFs saw record inflows of $676.8 million in a day, driven by top funds like iShares Bitcoin Trust IBIT Morgan Stanley considers joining the trend, highlighting Bitcoin’s growing acceptance and investor confidence in the cryptocurrency market.

February's Standout ETFs

February saw a $40 billion investment in 10 ETFs. This significant capital allocation spans equities, Treasury bonds, and Bitcoin.

Bubble Debate Insights

Ray Dalio expected no stock market bubble, citing the U.S. market’s mid-range status per key indicators. The billionaire investor noted high valuations in Magnificent Seven but stops short of calling it a bubble, while warning that a downturn is possible if artificial intelligence advances fall short of expectations.

Apple Conviction Dropped

Goldman Sachs removed Apple Inc. AAPL from its ‘conviction list' but maintained a ‘Buy' rating on the stock. Post-iPhone 15 and Vision Pro releases, and amidst reports of Apple abandoning its electric vehicle project, the firm sees stronger opportunities elsewhere, reflecting in a slight dip in Apple’s share price.

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