Nasdaq 100 Hits 13-Month Highs on debt-deal signals (2 min read)

US stocks rose as the debt-ceiling talks made progress and signaled potential avoidance of a default. The S&P 500 reached a nine-month high, while the Nasdaq 100 surged nearly 2%, reaching its highest level since April 2022. US House leaders are planning votes on a bipartisan deal in the coming days, but concerns remain about negotiation volatility and the need for a comprehensive agreement.

Hike again? Take a pause? Fed officials are split about what to do next to fight inflation (5 min read)
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The Fed is divided over future policies as inflation remains high amid mixed economic data. Despite the market’s anticipation of a rate hike pause in June, recent warnings from Fed officials suggest that it is not certain. Some Fed officials believe that a pause in rate hikes is necessary to allow the previous increases to take effect, while others emphasize the need to continue raising rates as the latest data doesn’t support a pause. Traders and investors are turning to Fed Chair Jerome Powell's speech on Friday in hopes of more clarity.

Walmart raises full-year outlook as first-quarter sales top expectations (3 min read)
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Walmart, the world’s largest retailer, reported Q1 sales growth that beat expectations as consumers traded down from traditional supermarkets and slowed purchases of discretionary items. The company also raised its earnings forecast and outlook for the year over the anticipation that the growth will sustain. Walmart often shines when the economy slows and inflation is high. Its stock rose nearly 6% year to date, trailing the S&P 500’s 7% gain and well above the US retail index’s 2% rise.

Alphabet Adds $115 Billion in Value After Defying AI Doubters (3 min read)
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Alphabet Inc., the parent company of Google, has regained momentum in the AI race. After unveiling its latest AI tools at a developer's conference last week, Alphabet's stock has surged 12% and added $160 billion in market value, erasing its underperformance compared to competitors like Apple and Microsoft. The company's efforts to enhance its search business and broaden the availability of its AI-powered chatbot has contributed to the stock's rally. Despite skepticism and concerns about AI risks, Alphabet's current valuation is still cheaper than peers.

ETFs to Tap the Surge in Japan Stocks (4 min read)
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Japanese stocks have been outperforming as the country’s index benchmarks inching to record highs. Most analysts are turning bullish on Japan due to robust corporate earnings, foreign buying, a steady BOJ policy, a weaker yen, and increased buybacks. Warren Buffett also recently increased his stake in Japan’s top trading houses and expressed interest in Japanese stocks. For investors looking to tap into the potential rally, this article highlighted several Japan ETFs to consider.

Active Funds’ Success Scrutinized in S&P Study (2 min read)

A recent survey by S&P Dow Jones suggests that skill does not lead to consistent success when it comes to actively managed funds. The survey found little evidence of continued active management success across various metrics and time periods. Most active managers underperformed in 2022, even under favorable conditions, with over half of large-cap U.S. equity funds lagging behind the S&P 500. The study also revealed that managers who performed well in the past could not replicate their success in subsequent years.

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Thomas

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