Feel the Heat: Inflation ClimbsMarket Sizzle: Inflation Spikes, Tech Giants Profit, Oil Stumbles, World Bank Warnings
Hey there, Josh here from sunny Miami, FL! Can you believe it? James Cameron, the mastermind behind the menacing Skynet in "The Terminator," recently mused that an advanced AI might one day direct movies like him. But, he chuckled, it won't be stealing any Oscars from Schwarzenegger anytime soon. Makes you wonder, if robots start making movies, what would a popcorn machine dream about? Inflation Surges, Shaking Markets to the Core
Prices are still too high, folks! The Federal Reserve says inflation rose 2.7% in March from last year. That's more than their 2% target. The main prices, without food or energy, went up 2.8%. People thought it would be a bit lower. The news made bond markets nervous. It showed prices are climbing faster than expected. Prices from February to March rose 0.3% too. A report last Thursday made things clearer but calmer. It showed that prices in January were higher than first thought. This calmed people who were worried about March's numbers. Everyone thought the Fed might lower rates this year. But with prices staying high, that might not happen. Now, only a few people think the Fed will keep rates the same all year. Oil Titans Stumble as Profits Plunge
Exxon Mobil and Chevron, two oil giants, had a dip in profits. They made $13.7 billion together. That's a lot but not as much as before. Prices for natural gas went down. Making fuel didn't earn as much either. Exxon got $8.2 billion. That's 28% less than last year. Chevron did a bit better than expected. They earned $5.5 billion, down 16%. Oil and gas prices were high before. Now, they're more stable. Exxon and Chevron need to keep costs low and make more oil and gas. Exxon's oil work in Guyana helped them some. They made $1 billion more than thought. Chevron is also doing more oil work around the world. Oil prices went up this year. This helped Exxon and Chevron's stock prices go up too. But, investing in oil is tricky. People aren't sure how long oil will be important. AI Surge Powers Massive Tech Gains
Microsoft and Alphabet, the big tech names, are doing great thanks to AI. They made a lot more money because companies want their cloud services. Their value jumped by $250 billion just yesterday. This is good news for them and their stock prices. Google and Microsoft spent a lot on AI, but it's paying off. Google also made more from ads. People are still using Google a lot, even with new AI chatbots around. Other tech companies like Amazon and Nvidia are also seeing benefits from AI. They got a small boost in their stock prices too. Big tech companies will spend a lot more this year on AI. For example, Google plans to spend $48 billion. Microsoft's spending is up 79% from last year. People say if you're not using AI in your business, you might fall behind. AI is a big deal, and it's changing how companies work. World Bank Sounds Alarm: High Prices Here to Stay
Energy and raw materials won't keep prices low much longer, the World Bank says. These prices used to help lower inflation, but that's changing. Prices of things like oil and metals have stopped falling. They dropped 40% last year, which helped reduce global inflation. Now, they've leveled off. This means interest rates might stay high. Prices might only drop a little over the next two years. This is bad news for banks that want to lower interest rates. The high prices and slow economic growth are starting a new tough time, similar to what happened after the 2008 crisis. Also, copper prices might go up because it's needed for electric cars and power grids. More spending on energy could keep prices high. Tensions in the Middle East could also raise the prices of gold and oil. Quick Sizzles:
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2024年4月27日星期六
Feel the Heat: Inflation Climbs
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