The major indexes concluded their five-week winning spree on Friday, reacting to unexpectedly high inflation data and sparking concerns about a potential delay in interest rate cuts by the Federal Reserve. The S&P 500 closed the week down by 0.42%, the Dow fell by 0.11%, and the Nasdaq dropped by 1.34%.
Inflation figures revealed a 3.1% year-over-year increase, surpassing the estimated 2.9%, alongside core inflation that also exceeded expectations by reaching 3.9%. Adding to the worries about reaching the Fed’s 2% inflation target, the Bureau of Labor Statistics reported a 0.3% monthly increase in the Producer Price Index, a significant rise from the prior month’s decline.
Consequently, market participants adjusted their expectations for Federal Reserve rate cuts in 2024, reducing the anticipated total from 120 basis points to 95.
Benzinga provided its daily assessments of the stocks most favored by investors. Here’s a glimpse at some of the most bullish and bearish posts from the past week that merit further attention.
Bullish Outlook
A report by Chris Katje on a 13G filing revealing that Elon Musk owns 20.5% of Tesla Inc. (TSLA) sparked a modest increase in the stock despite no change in Musk’s ownership stake.
Neil Dennis highlighted four AI-related companies, including Palo Alto Networks (PANW) and Arista Networks (ANET), that outperformed the S&P 500 in 2024 due to their groundbreaking AI and cybersecurity solutions.
Mehab Qureshi’s coverage of a crypto analyst’s prediction that Dogecoin (DOGE/USD) could hit $0.10 by May, driven by a surge in major transactions and the transfer of 100 million DOGE to Robinhood, offered an optimistic outlook for memecoins.
Additional bullish calls from the past week included Michael Saylor’s bullish stance on Bitcoin and an emerging markets expert’s advice to seek hidden gems in bruised Chinese and Hong Kong stocks.
Bearish Sentiment
Adam Eckert’s piece featured Josh Brown suggesting that the market, particularly Nvidia Corp (NVDA), may have peaked for the year due to frenzied trading and extreme valuation increases.
Neil Dennis detailed the upcoming intense showdown on April 3, as Walt Disney Company (DIS) faces a critical vote with hedge fund activists Nelson Peltz and Jason Aintabi over board seats amid dissatisfaction with the company’s recent performance.
Murtuza Merchant’s report on SEC Chair Gary Gensler’s skepticism of Bitcoin’s decentralization and concerns over its association with illicit activities during a CNBC interview added to the overall bearish sentiment.
Other bearish takes emphasized worries about inflation persisting, a potential market correction, and the challenges facing Rivian in 2024.