Here are the most important news, trends and analysis that investors need to start their trading day:
1. Wall Street looks resilient after two days of Fed selling
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, March 29, 2022.
Brendan McDermid | Reuters
US stock futures were relatively stable on Thursday as Wall Street tried to avoid a three-day losing streak. The Nasdaq has led sales over the past two days as the Federal Reserve began to take on a more aggressive tone, dropping 2.2% on Wednesday, a day after falling about 2.3%.
- After a number of Fed officials called for more aggressive tightening to fight inflation, the minutes of the central bank’s March meeting showed a general agreement to cut its huge balance sheet by $95 billion a month.
- The minutes also showed that Fed officials are considering a larger-than-usual 50 basis point rate hike after last month’s 25 basis point hike, the first increase in more than three years.
2. Key Treasury yield spread remains inverted following the release of jobless claims data.
Historically, these inversions have occurred before economic downturns. With a strong labor market, the Fed may have the opportunity to slow the economy to fight inflation while fulfilling its dual mandate of promoting maximum employment and controlling prices. The central bank is expected to raise rates at all six remaining meetings this year. The size of these increases is the real question.
Warren Buffett at the Berkshire Hathaway Annual Meeting in Los Angeles, California. May 1, 2021
Gerard Miller | CNBC
Warren Buffett’s Berkshire Hathaway has acquired a large stake in technology equipment HP Inc., becoming the largest shareholder in the PC and printer maker. Berkshire bought nearly 121 million shares of HP, roughly 11%, according to the securities filing, and that stake was valued at about $4.2 billion based on HP’s share price at Wednesday’s close. That’s down to a 15% jump in HP shares in premarket Thursday after news that came hours after the close of trading. Berkshire has become more active in recent months, announcing a deal to buy insurance company Alleghany for $11.6 billion and buy shares in energy company Occidental Petroleum.
4. Shell announces up to $5 billion in asset writedowns after leaving Russia
Royal Dutch Shell products in Torzhok, Russia.
Andrey Rudakov | Bloomberg | Getty Images
On Thursday, Shell said it would write off $4 billion to $5 billion after leaving Russia. The announcement provides the first glimpse of the potential financial implications for the Western oil giants who pulled out of Russia following Moscow’s unprovoked invasion of Ukraine. More details on the impact of current events on Ukraine will be provided in Shell’s first-quarter earnings report on May 5, the company said. Shell previously estimated that write-offs in Russia would amount to $3.4 billion. Last month, Shell was forced to apologize for buying Russian oil at a significant discount and subsequently announced it was pulling out of Russia.
A funeral worker examines the bodies of civilians collected from the streets at a local cemetery during the ongoing Russian attack on Ukraine, in the town of Bucha near Kiev, Ukraine, April 6, 2022.
Stringer | Reuters
Ukraine on Thursday turned to NATO for additional weapons in their fight against Russia to help prevent further atrocities like those reported in Bucha, near Kyiv. Western countries have provided Ukraine with man-portable anti-tank and anti-aircraft weapons, but they are reluctant to supply aircraft, tanks or any other equipment that requires training to use.
- Russian troops that failed to quickly take the Ukrainian capital are regrouping for an offensive in eastern Ukraine, where Moscow recognized the Luhansk and Donetsk regions as independent states at the beginning of its invasion.
CNN correspondents. Yoon Lee, Jeff Cox, Samantha Subin, Hanna Miao, Jessie Pound, Elliot Smith as well as Silvia Amaro and the Associated Press contributed to this report.
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