"The stock market is designed to transfer money from the Active to the Patient."- Warren Buffett
This quote reflects Buffett's core philosophy that success in investing often comes from patience, not constant activity. Long-term investors who hold quality businesses tend to outperform those who chase short-term gains.
The market rewards discipline and the ability to sit still when others panic.
Market Wrap
Caution in the Air as Fed Pauses and Trump Teases Deal
Federal Reserve Maintains Rates Amid Rising Risks:
The Federal Reserve kept the federal funds rate unchanged at 4.25%–4.5%, citing increased economic uncertainty due to new tariffs imposed under President Trump's trade policies. Fed Chair Jerome Powell highlighted concerns about potential stagflation—simultaneous inflation and economic slowdown—and emphasized a cautious "wait and see" approach.
President Trump Teases Upcoming Trade Deal Announcement:
Late on May 7, President Trump announced via social media that he would unveil a new trade agreement with a "BIG, AND HIGHLY RESPECTED, COUNTRY" at 10 a.m. ET on Thursday. While details remain scarce, this marks the first trade deal since the recent tariff escalations that unsettled markets. Investors are closely watching for specifics, as the announcement could signal a shift in trade policy and impact market sentiment.
U.S.-China Trade Talks Scheduled in Switzerland:
The U.S. Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer are set to meet with Chinese counterparts in Geneva this weekend. These discussions aim to address ongoing tariff disputes that have affected global trade and market stability. The talks are seen as a potential step toward de-escalation, and markets are responding with cautious optimism.
India-Pakistan Border Clashes Escalate Geopolitical Tensions:
On May 7, India conducted missile strikes in Pakistani-administered Kashmir in response to a deadly attack on Indian tourists. Pakistan vowed retaliation, leading to heightened military tensions in the region.
Alphabet Inc. shares fell amid concerns over its core search business, as investors reacted to signs of slowing growth and increased competition in the digital advertising space. The company's earnings report highlighted challenges in maintaining its market dominance.
Walt Disney Co. shares surged 10.8% after the company reported better-than-expected earnings, driven by strong performance at its U.S. theme parks and a significant increase in streaming subscribers. The announcement of plans to build a new theme park in Abu Dhabi further boosted investor confidence.
Arm Holdings plc shares dropped over 11% in after-hours trading after the company reported earnings that missed analyst expectations. Despite a significant year-over-year increase in earnings per share, the results fell short of market forecasts, leading to a sharp decline in stock price.
MercadoLibre Inc. shares moved following the release of its quarterly earnings report, which showed a 13.13% increase in earnings per share compared to the same quarter last year. The company's performance exceeded expectations, reflecting strong growth in its e-commerce and fintech segments.
CrowdStrike Holdings Inc. shares declined 4% following the announcement of a 5% workforce reduction, attributed to AI-driven efficiencies. The layoffs raised questions about the company's growth trajectory and cost management strategies.
AppLovin Corp. shares reacted positively after the company reported a 116.42% increase in earnings per share compared to the same quarter last year. The strong performance was attributed to robust demand for its software platform and effective monetization strategies.
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