Tuesday's Scoop: Lull🌤️

Hey friend - if you have any recommendations for New Orleans restaurants, send them my way. Wedding season is here.

Here’s what you need to know today to inform your work, spending, and investments…

1. Companies have cut back their hiring pace significantly since last year.

2. Gold is worth more than it ever has.

3. Giant companies are merging again after a slowdown in 2023.

Unemployment Rate: 3.9%
^{Still near the lowest rate in 50+ years}

Employers have cut back on their hiring plans significantly since last year. The Labor Department's Job Openings and Labor Turnover Summary indicated that there were 8.8 million available positions in February, up slightly from January but well below the peak of 12 million in 2022. There are 1.36 available jobs for every unemployed worker, a considerable slowdown from having nearly 2-to-1 earlier in the year. Hiring hasn’t slowed all that much over the past several months, and layoffs are still at historically low levels. So, it seems employers are becoming more cautious about growth while hanging on to their existing employees.

The Market: ⬇️ -0.7%
S&P 500: 5,205.81
1Mo: +2% | 1Yr: +26% | 5Yr: +80%

The market sank lower on Tuesday as the escalating conflict in the Middle East pushed oil prices higher and fueled more concerns about the economy and inflation. Employers have cut back hiring, but layoffs are still low.

Mega mergers are back in fashion. After corporate mergers and acquisitions hit a decade-low last year, a flurry of massive buyouts has signaled that CEOs are ready to make moves again. According to Dealogic, 11 deals worth $10 billion or more have been made so far this year. The total value of the companies being purchased this year has surged 24% from last year to $726 billion. This means more money for investment bankers, more consolidation, and more economic optimism from business leaders.

Gold is more valuable than it has ever been. The price per ounce of the shiny yellow metal hit a new record high this week of over $2,270 as investors grew optimistic about lower interest rates or more fearful about financial markets. Investors typically see gold as a safer asset and store of value, so an increase in demand could signify pessimism about the economy or stock market. Gold competes with cash for investors’ attention. While both are safe assets, gold doesn’t earn interest like cash in a savings account can. However, if interest rates fall, cash earns less, and gold gets more attractive.