Weekly Market update 3/22/2024

The Dow, S&P 500, and the Nasdaq all hit fresh record closes on Thursday as the Federal Reserve maintained its dovish guidance and economic momentum continued.  Entering Wednesday’s Fed meeting announcements there were some concerns that the recent streak of hot inflation data might undermine the likelihood for future interest rate cuts, but Fed Chair Jerome Powell dispelled such concerns by noting that the “story” of slowly easing price pressures remained intact.  The week also saw strong debuts for initial public offerings in Reddit and Astera Labs, which is a welcome development after an almost three-year dry spell for IPOs.  Next week will be shortened by the Good Friday market holiday, but consumer confidence and the personal consumption expenditures (PCE) will be notable economic data releases.

DOJ TARGETS APPLE

The US already has existing cases against Apple, Amazon, Meta, and Alphabet, but big tech antitrust scrutiny increased on Thursday as the Department of Justice (DOJ) filed suit against Apple claiming the tech giant is monopolizing the smartphone market.  The claim alleges that Apple’s walled garden ecosystem unfairly withholds critical access points from developers and undermines efforts from competitors to integrate with the iPhone and raises prices for consumers.  In the past Apple has countered that its ecosystem’s policies ensure safer and easier use.  This antitrust case will likely take years to play out, but with Apple being the second largest company in the world by market cap and a common holding for many clients, we are watching this closely.

Ian G. Browning, CFA
Managing Director, Investment Strategies | Shareholder

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