DailyBrief: May 1
Fed holds with rare 8-4 split, S&P at record above 7,200, Anthropic eyes $900B
Markets & Economics
S&P 500 closes April at a record above 7,200, capping its strongest month since 2020
U.S. equities finished April on a high note, with the S&P 500 climbing 1.02% on Thursday to settle at 7,209.01, its first close above 7,200, while the Nasdaq Composite rose 0.89% to a record 24,892.31. The Dow Jones Industrial Average jumped nearly 800 points on the session. Investors took comfort from solid Big Tech earnings and easing geopolitical risk premiums, with futures pointing to modest follow-through gains at the May 1 open. Source: CNBC
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Federal Reserve holds rates at 3.50% to 3.75% in Powell's final meeting, with a rare 8 to 4 dissent
The FOMC voted on April 29 to leave the federal funds target range unchanged, citing elevated inflation that "in part" reflects the global energy shock from the Iran conflict. Four officials dissented, the largest split since October 1992, signaling deep disagreement about the path forward as some members pushed back against signaling further cuts. The meeting was Jerome Powell's last as chair before he steps down on May 15 and remains as a governor; the Senate Banking Committee has advanced Kevin Warsh as his successor. Source: CNBC
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ECB keeps deposit rate at 2% as eurozone inflation jumps to 3% in April
The European Central Bank held its three key rates steady on April 30, with President Christine Lagarde flagging that upside risks to inflation and downside risks to growth have intensified since the Iran war reshaped the energy outlook. Flash data showed euro area headline inflation accelerated to 3% in April from energy costs, even as growth indicators softened. Markets are now fully pricing in three ECB hikes this year, with the first move possibly arriving as soon as June, a sharp reversal from the cutting cycle expected at the start of 2026. Source: Euronews
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Apple posts record fiscal Q2 revenue of $111.2 billion, raises buyback by $100 billion
Apple reported revenue of $111.2 billion for the March quarter, up 17% year over year, with net income of $29.6 billion and diluted EPS of $2.01, beating Wall Street on every major line. iPhone sales rose 22% to a March quarter record of $57.99 billion as the iPhone 17 family gained share, while Services hit an all-time high of $31 billion. The board authorized an additional $100 billion in share repurchases and lifted the quarterly dividend to $0.27. Apple guided to another quarter of double-digit growth, lending support to a U.S. tape that has leaned heavily on mega-cap earnings. Source: CNBC
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Tech & AI
Anthropic weighs new funding round that would value it above $900 billion, eclipsing OpenAI
The maker of Claude is fielding preemptive offers of around $50 billion at a valuation between $850 billion and $900 billion, according to people familiar with the discussions. A deal at that level would more than double the $380 billion valuation Anthropic set in February and put it ahead of OpenAI's $852 billion mark from earlier this year. Sources tell TechCrunch the round could close within two weeks and is likely to be Anthropic's last private raise before an eventual IPO, intended to fund its expanding compute commitments. Source: Bloomberg
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Big Tech is on track to spend $700 billion on AI infrastructure in 2026
Combined capital expenditure guidance from Alphabet, Microsoft, Meta and Amazon, all of which reported earnings on April 29, points to roughly $700 billion in AI-related buildout this year, a step change from prior cycles. Executives across the four hyperscalers told investors demand for AI compute remains capacity-constrained, with management defending returns by pointing to accelerating cloud and ad revenue growth. Fortune notes the spending wave is now visibly powering U.S. GDP, with Q1 business equipment investment up more than 17% quarter over quarter, much of it tied to AI. Source: Fortune
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