Bonds & Stocks
The stock market is ending the week on a positive note, with solid indications that the world’s largest economy remains in good shape after the Federal Reserve’s aggressive tightening campaign. While strong economic data also imply the Fed may not be so bold with rate cuts, the perception that officials will start easing policy this year is fueling risk appetite. A drop in Treasury volatility continued to bode well for the S&P 500’s most-influential group, with technology shares outperforming and signaling the US equity benchmark will be on the brink of its all-time high.
Economy
President Joe Biden is forgiving nearly $5 billion in additional student debt as the administration seeks to deliver on one of his signature initiatives with high stakes for his 2024 reelection campaign. Almost 74,000 student loan borrowers will see debt canceled as a result of administrative changes by the US Education Department in the latest round of relief. Those affected include borrowers enrolled in the government’s income-driven repayment and public-service loan forgiveness programs.
World
The shape-shifting conflict in the Middle East saw Iran openly go on the offensive for the first time since the war in Gaza began, as Tehran’s latest round of existential brinkmanship with Israel spread further from the tiny Mediterranean enclave. The show of force broke with the stealth that’s come to define Iran’s role in the conflict so far, after allies like the Houthis in Yemen and Lebanon’s Hezbollah led the military campaign in support of Gaza.