General Market News

S&P Global Ratings downgraded the Australian Securities Exchange (ASX) to 'A+/A-1' from 'AA-/A-1+' following an Australian Securities and Investments Commission (ASIC) inquiry that found governance and risk management failures. The downgrade reflects ASX's recent missteps, including trading outages, a failed CHESS replacement program, and a 2024 settlement breakdown, which regulators attributed to weak governance and a culture prioritizing short-term returns over market integrity.

• S&P warned of potential further downgrades if ASX's risk controls and clearinghouse risk management practices deteriorate over the next two years
• ASIC's 10-month inquiry found ASX adopted short-term 'tactical solutions' rather than addressing root causes of technology-centered problems
• S&P revised ASX's outlook to 'stable' from 'negative', citing the exchange's dominant market position and integral role in Australian financial infrastructure

The S&P 500 crossed 7,000 points for the first time in history on Wednesday, driven by investor optimism that the U.S.-Iran conflict may be nearing its end following a two-week ceasefire announced last week. The rally erased losses incurred during the early days of the war, with strong quarterly earnings from Bank of America and Morgan Stanley further boosting market confidence.

• The S&P 500 rose 0.8% to close at 7,022.95, while the Nasdaq climbed 1.6% to its own record high of 24,016.02
• Brent crude oil dropped 10% after the ceasefire announcement to around $95 per barrel, still 35% higher than pre-conflict levels
• Bank of America and Morgan Stanley beat earnings estimates, with BofA CEO noting strong consumer spending and improving credit quality despite ongoing uncertainty

Consumer prices rose 3.3% year-over-year in March, the largest increase since May 2024, primarily driven by surging oil and gas prices. However, core inflation excluding volatile energy and food costs increased only 2.6% annually and 0.2% monthly, both near or below expectations, suggesting underlying price pressures remain well-contained despite headline inflation concerns.

• Core inflation rose just 2.6% annually, close to the Fed's 2% target, with monthly core prices up 0.2% versus expected 0.3%
• Federal Reserve research indicates tariff impacts on core goods prices are largely finished, while core services prices grew at their slowest pace since May 2025
• The inflation spike is characterized as primarily an energy-driven, short-term shock rather than broad-based price pressures, though likely insufficient to prompt near-term Fed rate cuts

The Commodity Futures Trading Commission is investigating suspicious oil and stock futures trades that occurred minutes before President Trump announced a pause in attacks on Iran on March 23. The trades showed unusual volume spikes approximately 15 minutes before the market-moving announcement, raising concerns about potential insider trading using nonpublic government information.

• S&P 500 futures jumped more than 2.5% and WTI crude oil futures tumbled nearly 6% following Trump's announcement about halting strikes on Iranian energy infrastructure
• Regulators are examining at least two instances over a two-week period where trading volumes surged sharply just before key announcements, requesting Tag 50 identifiers to determine who made the trades
• Senators Elizabeth Warren and Sheldon Whitehouse called for investigations into whether there has been recurring misappropriation of material nonpublic government information

Major Wall Street firms including Two Sigma, D.E. Shaw, and Citadel are opposing the SEC's proposal to allow companies to opt out of quarterly earnings reporting in favor of semi-annual disclosure. The SEC, backed by President Trump and Chair Paul Atkins, argues the change would reduce costs and encourage long-term thinking, but investors warn it would reduce transparency and increase market volatility. The proposal is expected to enter a formal comment period in coming weeks.

• Investment firms warn that eliminating mandatory quarterly reporting would create inconsistent disclosure practices, heighten market volatility, increase stock price swings, and raise companies' capital costs
• The U.S. has required quarterly reporting since 1970, contrasting with Europe and Asia's semi-annual standards; publicly listed U.S. companies have declined 36% to 4,500 since 2000
• Wall Street remains divided: when Trump first proposed this in 2018, two-thirds of 63 firms that commented opposed the change, including BlackRock and T. Rowe Price, though some public companies now support the shift

Wall Street's major banks reported a 27% average surge in investment banking fees during Q1 2026, driven by strong dealmaking activity, with industry-wide revenue reaching $28.2 billion. Despite robust pipelines and optimism for continued growth through the year, executives warned that escalating conflict in the Middle East could delay deal execution and timing.

• Global M&A revenue jumped 19% to a record $11.3 billion in Q1, with total announced deal value hitting $1.38 trillion, the second-highest first quarter on record
• JPMorgan claimed the top investment banking spot, followed by Goldman Sachs and Morgan Stanley; technology (especially AI), healthcare, and financial services led deal activity
• High-profile IPO pipeline includes SpaceX, OpenAI, and Anthropic, which could collectively match total U.S. VC-backed IPO fundraising from the past decade, though Middle East tensions caused a slight March slowdown

U.S. Attorney Jeanine Pirro continues investigating the Federal Reserve over construction cost overruns despite a federal judge quashing her subpoenas for lack of evidence. She faces a May 4 deadline to appeal the ruling, while the controversy blocks Senate confirmation of Fed Chair nominee Kevin Warsh, as Senator Tillis opposes the nomination until the investigation concludes.

• Judge James Boasberg quashed Pirro's subpoenas after prosecutors admitted they have 'no evidence whatsoever of fraud' and declined to present any suspicions of improper conduct by Chair Jerome Powell
• Pirro has until May 4 to file an appeal under court rules, coinciding with a potential Senate vote on Kevin Warsh's nomination to replace Powell as Fed Chair
• The investigation centers on Fed construction cost overruns of nearly 80% over budget, while Trump and critics claim it is an attempt to pressure the Fed on interest rate policy

The S&P 500 is projected to deliver its sixth consecutive quarter of double-digit earnings growth at 12.6% in Q1 2026, driven primarily by a 45% surge in the Information Technology sector. Goldman Sachs kicked off bank earnings with strong results, particularly in equities and investment banking, while FICC trading weakened. However, more companies like Constellation Brands are withdrawing forward guidance due to geopolitical uncertainty and volatile energy costs, creating a murky outlook for the second half of 2026.

• Goldman Sachs reported record equities revenue of $5.33 billion (up 27%) and investment banking fees jumped 48% to $2.84 billion, though FICC trading fell 10% year-over-year
• Nine of eleven S&P sectors expect positive earnings growth, led by Information Technology (45%), Materials (24.2%), and Financials (15.1%), while Health Care is projected to decline 9.8%
• Companies are increasingly withdrawing guidance amid a 'wait-and-see' approach, with peak earnings season expected April 27-May 15 and only 48% of companies having confirmed reporting dates

The Iran war is impacting the U.S. economy primarily through soaring energy costs, with oil prices peaking near $115 per barrel in April 2026 before settling around $91. Economists expect modest GDP effects, with Goldman Sachs cutting its 2026 forecast to 2% growth, though the outcome heavily depends on whether the current ceasefire holds. Consumer sentiment hit record lows despite resilient spending, while headline inflation jumped to 3.3% annually in March driven by an 18.9% surge in gasoline prices.

• Economists identify $125 per barrel for West Texas Intermediate crude as the threshold where 'demand destruction begins to accelerate,' creating serious economic problems beyond current levels.
• March inflation data showed a 0.9% monthly increase in headline CPI (3.3% annually) driven by energy, but core inflation remained moderate at 0.2% monthly (2.6% annually), suggesting contained broader price pressures.
• Consumer spending surged 4.3% in March with a 16.5% jump at gas stations, while the University of Michigan sentiment index hit its lowest reading since the 1950s, demonstrating a disconnect between consumer attitudes and actual behavior.

The U.S. dollar has broken below its 50-day moving average, while bond yields are falling, creating a mixed signal for markets. Initially, this combination supports risk assets by boosting liquidity and easing financial pressure, but the dynamic could shift from stimulus to warning if it reflects slowing growth expectations. The key variable is oil prices: if energy costs remain elevated while the dollar and yields fall, markets may face stagflation-like pressure rather than supportive conditions.

• A second close below the 50-day moving average would confirm the dollar's breakdown, with the 200-day moving average as the next likely destination
• Falling dollar and yields initially support equities and commodities by improving global liquidity, but may signal weakening demand and growth concerns if the trend persists
• Elevated oil prices combined with declining dollar and yields creates tension, increasing input costs and margin pressure while potentially indicating stagflation-like economic stress

Crypto exchange Kraken remains committed to a potential US IPO despite delaying plans filed in November 2024 due to volatile market conditions. The company's valuation has dropped to $13.3 billion from $20 billion in November, reflecting shifting sentiment in crypto and broader capital markets. Co-CEO Arjun Sethi confirmed the public offering is 'still on the table' as the company continues evaluating long-term access to public markets.

• Kraken's valuation fell 33% to $13.3 billion from approximately $20 billion in November, amid difficult market conditions
• Since mid-2025, Kraken raised roughly $1 billion including $600 million led by Jane Street and DRW, $200 million from Citadel, and a $200 million secondary transaction with Deutsche Börse acquiring a 1.5% stake
• The company confidentially filed S-1 registration with the SEC in November but has paused IPO plans while maintaining long-term public market ambitions

President Trump threatened to fire Federal Reserve Chair Jerome Powell if he does not leave when his term ends on May 15, 2025, while pushing his nominee Kevin Warsh for the position. Trump also doubled down on a criminal investigation into Powell over Fed headquarters renovations. The confrontation highlights Trump's ongoing pressure campaign for interest rate cuts and raises constitutional questions about presidential authority over the independent central bank.

• Warsh's confirmation hearing is scheduled for April 21, but Republican Senator Thom Tillis plans to block the nomination until the DOJ ends its investigation into Powell over building renovations that Trump claims could cost $4 billion
• Powell publicly called the investigation a 'pretext' connected to the Fed's refusal to lower interest rates based on political pressure rather than economic evidence
• The Supreme Court has yet to rule on Trump's authority to fire Fed officials without cause, following his dismissal of Fed Governor Lisa Cook in summer 2025, with justices appearing skeptical of such presidential power during oral arguments

US stocks opened higher on Wednesday with the S&P 500 approaching a new all-time high, rising 0.2%, while the Dow gained 0.3% and the Nasdaq advanced 0.3%. The rally was driven by optimism over potential diplomatic progress with Iran, strong bank earnings from Morgan Stanley and Bank of America, and gains in tech stocks including Broadcom following an expanded Meta partnership.

• President Trump indicated Iran conflict may be 'very close to over', helping the S&P 500 erase all losses since the conflict began in late February and approach its Jan. 28 record high of 7,002.28
• Morgan Stanley beat expectations with Q1 EPS of $3.43 versus $3.00 estimate and revenue of $20.58B versus $19.72B, rising over 2% on strength in equity sales and trading
• Broadcom gained 2% after Meta expanded its partnership to deploy custom chips using Broadcom's technology, supporting the tech sector's continued rally

US equities opened higher on Wednesday, with the S&P 500 approaching a new all-time high and the Dow rising 0.3%. The rally was driven by optimism over potential diplomatic resolution to the Iran conflict, strong bank earnings from Morgan Stanley and Bank of America, and gains in tech stocks led by Broadcom's expanded Meta partnership.

• S&P 500 rose 0.2% toward record close, Nasdaq gained 0.3%, and Dow added 157 points, marking the S&P's ninth positive session in ten days
• Morgan Stanley beat expectations with Q1 EPS of $3.43 vs $3.00 expected and revenue of $20.58B vs $19.72B, rising over 2% on strong equity trading
• Broadcom jumped 2% after Meta expanded partnership to deploy custom chips using Broadcom's technology, boosting semiconductor sector momentum

Solar energy stocks moved in opposite directions after reports that China is considering export controls on advanced solar technology to the U.S. American manufacturers like First Solar and Nextpower rose on prospects of reduced Chinese competition, while China-linked companies like Canadian Solar and SolarEdge fell in premarket trading.

• China produces roughly 80% of the world's solar panels and is considering limiting exports of advanced solar technology to the U.S., according to Reuters
• The solar energy industry group of 24 stocks is collectively down 11.4% in 2026, with First Solar (the largest U.S. solar company) falling 23% year-to-date
• U.S. tech companies are placing renewed focus on solar energy for space-based data centers, with Tesla planning to produce 100 gigawatts of solar power by end of 2028

Cleveland Federal Reserve President Beth Hammack stated in a CNBC interview that the central bank should maintain current interest rates 'for a good while' as it monitors evolving economic conditions. With the federal funds rate at 4.25%-4.5%, she emphasized a patient approach due to two-sided risks from both inflation pressures (including Iran war and tariffs) and employment concerns. Hammack is a voting FOMC member in 2025.

• The Fed has held rates steady after three cuts in late 2024, with the benchmark rate currently at 4.25%-4.5%, which Hammack considers a 'good place' for policy
• Hammack warned that successive supply shocks from the Iran war and tariffs complicate policy decisions, especially with already-elevated inflation making it harder to 'look through' these disruptions
• Markets are pricing in only about a 1 in 3 chance of a rate cut this year, despite FOMC officials indicating potential cuts, reflecting considerable disagreement among policymakers

President Trump threatened to fire Federal Reserve Chair Jerome Powell if he does not step down, stating he has held back from doing so to avoid controversy. Trump confirmed he has no intention of ending a criminal investigation into Powell and declared that Powell 'will be fired' if he does not leave on time.

• Trump told Fox Business he has 'wanted to fire' Powell but has 'held back' to remain 'uncontroversial'
• The president stated Powell will be fired if he does not leave 'on time', suggesting a timeline for Powell's departure
• Trump confirmed he will not end the ongoing criminal investigation into the Fed Chair

President Donald Trump threatened to fire Federal Reserve Chair Jerome Powell if he remains as a Fed governor after his term as chair expires May 15, 2026. Trump has nominated Kevin Warsh as Powell's replacement and insists Powell must leave entirely, despite Powell having two years remaining on his governor term. The situation is complicated by an ongoing investigation into the Fed's headquarters renovation.

• Powell's chair term ends May 15, 2026, but he has two years remaining as a Fed governor; most past chairs have left entirely, but Powell hasn't confirmed his plans
• An investigation into the Fed headquarters renovation is ongoing, with D.C. U.S. Attorney Jeanine Pirro's subpoena to Powell being blocked by a federal court
• Trump expressed confidence that his nominee Kevin Warsh will lower interest rates and criticized the Fed's renovation project as 'probably corrupt' and 'incompetent'

US stock futures opened flat on Wednesday following a strong rally, as investors paused amid uncertainty over potential US-Iran negotiations. President Trump suggested 'amazing' progress could occur within two days, with administration representatives expected to travel to Pakistan for talks. The development has already impacted oil prices and market volatility.

• Major indices closed higher Tuesday: Nasdaq up 2% to 23,639 points, S&P 500 gained 1.2% to 6,967 points, and Dow Jones added 0.7% to 48,535 points
• WTI crude oil briefly fell below $90/barrel overnight before recovering to $92.5 amid ongoing uncertainty over Strait of Hormuz supply disruptions
• Market analyst Kenny Polcari noted 'the market is betting on a deal and acting like it already happened,' with oil dropping 7% and VIX volatility index breaking below its trendline

President Donald Trump threatened on Wednesday to fire Federal Reserve Chair Jerome Powell if he does not leave the Fed board after a new chair is installed. This escalates Trump's ongoing conflict with the central bank leadership and raises questions about Fed independence.

• Trump explicitly stated he would fire Powell if the current Fed chair refuses to leave after his replacement is named
• The threat represents a direct challenge to Federal Reserve independence and Powell's position on the board
• Powell's term as Fed chair and his status as a board member are at the center of the dispute