Retail traders have been making some eye-catching moves in the market over the last week, with everyday investors putting billions of dollars into cash equities. Some of the biggest beneficiaries of this surge included lagging technology names and other well-known stocks. CNBC Pro subscribers can access a list of stocks and funds with the highest net inflows.
Meanwhile, JPMorgan & Chase saw a slide of more than 1% following regulatory fines totaling almost $350 million imposed by the Federal Reserve. The fines were related to a program to analyze firm and client trading for misconduct, which was deemed inadequate. Despite this setback, JPMorgan’s shares have climbed more than 11% this year.
In other news, the S&P 500 has seen a record number of record closes to start the year, with 17 out of the first 50 trading days ending at all-time highs. This trend is the most since 1998, indicating a strong start for the index in 2024.
Cocoa prices have also soared to a new record high due to adverse weather conditions and the cacao swollen shoot virus. Cocoa futures hit a new record of $7,489 per metric ton, marking a significant increase for the commodity. This surge in cocoa prices has negatively impacted chocolate confectioners like Hershey, which has seen a nearly 20% decline in the last 12 months.
Additionally, the producer price index rose more than expected in February, with core PPI also showing a gain. This data release is significant as it precedes the Fed’s meeting later this month.
Investors are advised to take steps to save on taxes stemming from their investments, especially considering the potential for hefty taxes due to big returns in 2024. Strategies such as enhancing tax efficiency in investment portfolios and rethinking asset allocation can help minimize tax liabilities.
Lastly, the House’s proposed bill to divest or ban TikTok could have broader stock market ramifications, particularly impacting the technology sector and stocks with Chinese exposure. The bill, if passed, could lead to major changes in the market landscape, affecting companies like Apple and Tesla.
Overall, the market continues to see fluctuations and new developments, making it an exciting time for investors to stay informed and make strategic decisions.
