Rate cut doubts send stocks lower 📉

Good Afternoon! 

Hey, everyone. It's Adam from Elite Trade Club. 

Here’s what moved the market today.

Markets 📈

U.S. benchmarks snapped a three-day winning streak with a modest pullback on Thursday. The Dow sold off, while the Nasdaq and S&P 500 posted fractional declines.

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Market-Moving News 🔎 

🧑‍⚖️ Fading Hopes for Federal Reserve Rate Cuts Amid Persistent Inflation

Investors and Federal Reserve officials have been facing a series of unsettling revelations with each new economic report. The dream of initiating rate cuts this summer, fueled by hopes of decreasing inflation, is gradually dimming. Recent data from the Commerce Department indicates that inflation remains more persistent than anticipated, defying the expectations set by last year’s second-half cooling.

Serial Disappointments 📉 
While individual monthly reports on growth and prices haven’t drastically altered the Federal Reserve's stance, the accumulation of disappointing data over the past few months is becoming hard to ignore. Inflation, in particular, has shown a tenacity that was unexpected, with recent months witnessing upward revisions in figures that have left investors and policymakers reconsidering the likelihood of rate cuts this year.

Fed Reacts 🏦 
Chicago Fed President Austan Goolsbee expressed concerns in a recent interview, noting that a string of three months of disappointing inflation data merits a serious reassessment of expectations. "After half a year of significant improvement and inflation rates hovering close to 2%, the recent uptick well above that range forces us to recalibrate our expectations and adopt a wait-and-see approach," Goolsbee stated.

Growth and Inflation 📈 
Contrary to the expectations of slower growth and subdued inflation facilitating a rollback of rate hikes, 2024 has presented a scenario of resilient economic expansion and firm inflation. The Commerce Department’s latest report showed a 1.6% growth in GDP, adjusted for seasonality and inflation, with underlying demand indicators suggesting a robust 3% growth rate.

Moreover, core inflation rates have escalated, with the personal-consumption expenditures price index reflecting a 3.7% annualized increase during the first quarter and a 2.9% rise from the previous year.

Looking Ahead 🔄 
As the Federal Reserve grapples with these robust economic indicators, the path forward for monetary policy appears increasingly complex. With inflation continuing to challenge the initial forecasts, the anticipated easing of interest rates may need to be postponed. This adjustment in expectations could have significant implications for financial markets and broader economic planning, compelling investors and policymakers to stay vigilant and responsive to evolving economic conditions.

Barfresh Food [BRFH] $1.82 (+76.7%)
randomly exploded despite no obvious company-specific news.

Processa Pharma [PCSA] $2.43 (+50.0%)
analysts at HC Wainwright initiated coverage on the stock with a “buy” rating and an $8 price target.

Imac [BACK] $5.10 (+46.3%)
filed a Form D disclosure that revealed the company has sold $900K worth of shares out of a $5.376 million offering.

ATN Intl. [ATNI] $19.30 (32.8%)
posted disappointing Q1 results and slashed its full-year guidance.

Brand Engagement [BNAI] $2.59 (30.5%)
filed an S/1 Registration Statement announcing an offering of over 46.7 million shares of its common stocks & underlying warrants.

Cyclacel Pharma [CYCC] $1.60 (30.4%)
filed an S/1 Registration Statement announcing an offering of over 5.95 million shares of its common stocks & underlying warrants.

That's it for today! Please, write us back, and let us know what you think of the Closing Bell Roundup. We're always eager to hear feedback from our members!

Thanks for reading. I'll see you at the next open! 

Best Regards,
— Adam G.
Elite Trade Club

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