Global Market developments include Jamie Dimon’s stagflation warning, Nvidia stock surge, US trading shifting to T+1 settlement, and SpaceX considering share sale.
JPMorgan CEO Jamie Dimon warns of US “hard landing” and stagflation, Nvidia’s stock surges, Ether ETFs approved, US trading shifts to T+1 settlement, and SpaceX considers $200 billion share sale.
JPMorgan CEO’s Prediction
Jamie Dimon, CEO of JPMorgan Chase, predicts a “hard landing” for the US economy, predicting a “stagflation” scenario with rising inflation, slowing growth, and slight interest rate increases.
Nvidia Rally
Nvidia stock surged over 9%, reaching $1,000 for the first time, giving the chip giant a market cap of $2.5 trillion. CNBC’s Jim Cramer advises investors to keep Nvidia’s AI darling and not trade it until the AI revolution runs on something else.
Ether Elevation
The SEC has approved a rule change allowing ETFs to buy and hold ether, a major cryptocurrencies, following the approval of bitcoin ETFs by companies like BlackRock and Bitwise.
Fast T+1 settlement
US trading is transitioning to a shorter T+1 settlement, aiming to reduce risk and improve efficiency in major markets. This change will temporarily increase transaction failure for investors. Countries like Canada, Mexico, Argentina, the UK, and Europe are considering the change.
Digital Dollar Denied
The US House of Representatives has passed a bill to prohibit the US Fed from creating a central bank digital currency, the ‘digital dollar’. The “CBDC Anti-Surveillance State Act” is an important amendment to the Federal Reserve Act. The bill has received support from three Democrats and all Republicans.
Deposit Falls
China’s efforts to boost economic growth by reducing bank deposits have led to a record exodus of cash, with a significant portion going into bonds and wealth management products, according to Bloomberg.
Boeing’s deliveries delays
Boeing’s finance chief predicts negative full-year free cash flow this year due to delays in deliveries, compared to March’s optimistic outlook of positive cash generation in the low single-digit billions. The crisis is pinching production of Boeing’s strongest-selling aircraft.
SpaceX shares selling
SpaceX is considering selling existing shares at a potential $200 billion valuation, potentially through a tender offer starting in June. The price for the offer is yet to be determined.
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