SLOW GROWTH

The U.S. economy saw a slower growth rate of 1.3% in the first quarter, largely attributed to subdued consumer spending. This was lower than the previously reported 1.6% expansion, marking the smallest increase in two years. Contributing factors to the sluggish GDP included a wider trade deficit and a smaller rise in inventories. While consumer spending grew at a 2.0% pace, down from the earlier 2.5% estimate, indicating a slowdown compared to the previous quarters. However, there is optimism for a rebound in the second quarter, with forecasts suggesting a potential growth rate of over 3%, similar to the previous two quarters. Nonetheless,  despite this potential recovery, let’s remember that uncertainties loom over the economy due to the Federal Reserve’s decision to maintain high-interest rates to curb inflation.

ETHER ETF AMENDED

BlackRock has updated its filing with the Securities and Exchange Commission (SEC) for a proposed Ethereum exchange-traded fund (ETF), and many are taking this amendment as a significant milestone in the journey towards making an ETH-based ETF available to investors. The proposed ETF, iShares Ethereum Trust, which will be trading under the ticker symbol ETHA, clarified that it will not involve Ethereum staking, which may lead to potential differences in returns compared to directly owning Ethereum. This is because staking is a process where cryptocurrency is locked up to support the network and gain rewards, and by not not staking Ethereum, the ETF may miss out on the rewards generated by supporting the blockchain network. Moreover, experts believe that more applicants are likely to follow BlackRock’s lead, and with a swift feedback from the SEC, spot Ethereum ETFs could potentially be launched as early as next month.

CLAIMS ON THE RISE

According to the latest report form the U.S. Labor Department, initial jobless claims experienced a slight uptick, rising by 3,000 to 219,000 for the week ending on May 25. This increase was higher than the projected 218,000 claims and followed two consecutive weeks of declines. Furthermore, the four-week moving average also showed a minor increase, climbing to 222,500 from the previous week’s average of 220,000. Concurrently, continuing claims saw a rise to 1.791 million from the prior week’s level, while the insured unemployment rate remained steady at 1.2%. Additionally, the actual unadjusted number of initial claims under state programs stood at 195,615, marking an increase of 2,898 claims from the preceding week. Moreover, it is worth noting that these developments occurred against the backdrop of seasonal expectations, thus, it indicates that there was not significant change from the prior week.

DOWNWARD TREND RESUMES

Despite the earlier recovery in gold prices, they seem to be back on a downward trend as the SPDR Gold shares have shown a 0.7% decrease. Today, the comex gold for May delivery experienced a loss of $14.90 per troy ounce, which is equal to a 0.6% decrease in value to $2340.30. This marks the fifth drop in value in the past six sessions, resulting in an overall decline of nearly 4% since reaching a record high last week. The recent downtrend in both gold and equities is notable, illustrating a shift in market sentiment despite the resilient nature of the U.S. economy in the face of high interest rates. However, despite this, it is worth noting that in light of these market movements, some experts, including view this as an opportune moment for potential buyers to enter the gold market and capitalize on the lower prices. They express optimism, perceiving the current pullback in gold as a favorable buying opportunity for future gains.

SLOWEST SALES

Salesforce Inc. experienced a significant 17% drop following an announcement of their slowest sales growth projection in history. Despite analysts initially forecasting a slightly higher revenue figure, at $9.35 billion, the company fell slightly below estimates at $2.35 per share, and announced that it anticipates a modest revenue increase of up to 8%, totaling $9.25 billion in the upcoming quarter – a stark contrast to the soaring growth rates seen in the past. In addition, concerns linger over Salesforce’s diminishing sales expansion and the industry’s transition towards artificial intelligence technology. And as a result of this, the stock plummeted to a low of $225.05, prompting unease among investors. However, despite this, CEO Marc Benioff remains hopeful about the company’s future, emphasizing the potential benefits of AI integration. Moreover, Salesforce’s Data Cloud division, which encompasses Mulesoft and Tableau, outperformed expectations with a 24% revenue surge to $1.4 billion, and this positive result provides some reassurance amidst the overall apprehension surrounding the company’s current trajectory.