March 25, 2024
Markets liked the Fed's message. The S&P 500 rose 2.29% to 5,234.18, the Dow gained 1.97% to 39,475.90, the Nasdaq rose 2.85% to 16,428.82, and the Russell 2000 gained 1.60%. The Fed held the funds target range at 5.25% to 5.5% and still projected three rate cuts for the year, even as inflation readings stayed firmer than hoped.
Canada gave investors a cleaner inflation surprise. February inflation cooled to 2.8% versus expectations for 3.1%, staying inside the Bank of Canada's 1% to 3% target range for a second month. Lower cellphone and internet costs helped, while gasoline and travel prices partly offset the decline.
China remained the global risk point. Unemployment rose to 5.3%, the third straight monthly increase, while secondhand home prices in major cities fell 6.3% year over year, the steepest drop since records began in 2011. That matters beyond housing because property weakness feeds into confidence, local government finances, bank balance sheets, and commodity demand.
The National Association of Realtors reached a $418 million settlement over claims that agent commissions were kept artificially high. The settlement would remove the rule requiring listings to include upfront offers for buyer-agent pay, letting buyers negotiate compensation directly. Americans pay about $100 billion per year in real estate commissions, and some analysts expect a 30% reduction in that pool. For recruiting, this is a clear fee-compression story.
JPMorgan launched a sports-focused investment banking group led by Eric Menell and Gian Piero Sammartano. The logic is simple: sports franchises have become a serious asset class. Top U.S. and European franchises are valued above $400 billion, and sports M&A reached $22.6 billion last year even as global M&A hit a decade low. JPMorgan has advised on sports activity including Sir Jim Ratcliffe's minority stake in Manchester United and stadium financing for Real Madrid's Santiago Bernabeu.
Other fee and valuation stories stayed active. Gold hit records as expected lower rates reduced the opportunity cost of holding a non-yielding asset. Nvidia introduced Blackwell B100 systems for AI inferencing, while investors still debated competition and regulatory risk. Meta, Microsoft, Spotify, and Match challenged Apple's plan for a 27% commission on outside App Store payments, keeping platform pricing power in focus.