Markets Rally On Soft CPI Report 👀 | NFLX Reports Increased User of 40M 💪 | MAG7 Hit New ATH With Some Surprising Leaders 🚨 | Berkshire Takes 6.7B Stake In Chubb LTD 🐳
Markets Rally 📈 On Softer CPI Report
The market rallied as a whole on Wednesday’s trading session after a soft reading on consumer prices brought back hopes of 3 rate cuts being put back on the table. This led to all three major indexes closing the market at record highs to end the day, the Consumer Price Index rose 0.3% over the previous month and 3.4% over the last month of April, which was lower than March’s print of 3.5% which indicated a “cooling” of inflation. Lets take a look at how our indexes closed today:
The S&P500 closed adding 1.2%
The Dow Jones Industrial Average saw a0.9% spike to close the market
The Nasdaq Composite clawed its way 1.4%
The overall market had a refreshed confidence that US economy is rebounding well enough for the Federal Reserve to finally start bringing dow rates from their 23 year historic highs, in response this is flipping the market back to its bullishness. On the meme side of the market & who both had historic days to staart the week, both companies closed well below 20% on the trading day. reported that its ad tier had hit 40 million global monthly active users, this being a significant jump from the 15 million users the company revealed back in November. This comes on the tail of the news that the streaming service had won the streaming rights to 2 NFL games set to air Christmas day as a part of a 3 season deal inked between the 2 companies on Wednesday.
The Magnificent 7 index hit an all time high today, which is an ETF that includes:
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As of February 28th , , & were the leaders of the group while the other 4 were slowly falling off, however in the last month things have changed. still leads as the top gainer increasing 9.8% in the last month, is now the best performer of this month adding on 10.6%, while gained 10.3%.
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Cisco and Berkshire Hathaway Make Headlines with Strong Forecasts and New Investments 📈
Cisco Systems has forecasted a strong fourth-quarter revenue, exceeding Wall Street estimates, driven by increased enterprise spending and easing supply chain constraints. The company’s shares rose 5% in after-hours trading. Cisco has been benefiting from growing artificial intelligence and cloud computing needs, and its recent acquisition of Splunk is expected to accelerate revenue growth and gross margin expansion. Meanwhile, Warren Buffett’s Berkshire Hathaway has unveiled a $6.7 billion stake in insurer Chubb Ltd., ending months of speculation. The conglomerate has been building the stake since 2023, but it was kept confidential by the Securities and Exchange Commission. Chubb stock jumped 9.9% in after-hours trading.
Berkshire’s investment in Chubb is seen as a strategic move, given the insurer’s global presence and range of services, including cyber attack and marine shipping coverage. The conglomerate has a deep understanding of the insurance industry, owning companies like Geico and National Indemnity.
Cisco’s strong forecast and Berkshire’s new investment are positive signs for the market, with Cisco’s revenue expected to reach $13.4-13.6 billion in the fourth quarter, and Berkshire’s cash pile reaching a record $189 billion.
