Sponsored by

Good morning readers. Forget about face ID and say hello to palm ID. Amazon yesterday announced the launch of the all new Amazon One app, where users can now scan their palm to authenticate a purchase to select stores, including more than 500 Whole Foods Markets and 150 third-party locations. With the new app, users can use their palm for everything from payment, entry, age verification and loyalty rewards at hundreds of stores, stadiums, airports, fitness centers and more.

Amazon released an ad on the new palm-recognition service. You can watch it here.

We’re curious though…is this something you’d sign up for? Let us know in the comments section at the end of the newsletter.

Let’s jump into today’s storylines.

In today’s digest:

• The S&P 500 is on a tear to start 2024

• Headline Hustle: SBF gets sentences to 25 years in prison, Home Depot buys specialty distributor SRS for $18.25 billion, Biden Administration grants $60 million to repair Baltimore bridge

• The U.S. government is changing the way it collects your race and ethnicity

• Pulse Points: What’s Trending

MARKETS

The S&P 500 has its best start since 2019

Who knew? As the clock ticked into 2024, investors strapped in for what they hoped would be a smooth ride. Spoiler alert: The market's first quarter not only delivered smooth, it hit turbo.

Stocks, bitcoin, and even old reliable gold didn't just climb; they pole-vaulted to new records. The S&P 500 swaggered its way to a 10% gain, its best start since 2019, while flirting with 22 all-time highs. And no, it wasn't just big tech hogging the limelight this time. Almost all sectors shared in the spoils, with the Russell 2000 and value stocks showing they've still got game.

Can’t stop, won’t stop

Behind the scenes, it seems like the economy's playing a game of 'Defy the Odds', with recession fears fading faster than a politician's promises. A mix of resilient corporate profits, AI fever, and whispers of the Fed cutting rates has investors dancing in the aisles, with some even admitting their "cautious optimism...may have underestimated the power of momentum."

But as the market value balloons by over $9 trillion since last October, some can't help but peer over their champagne glasses, wondering if the best is behind us.

• The so-called Magnificent Seven of tech had their moment but faced some reality checks, with Tesla and Apple taking a breather.

• Meanwhile, AI darlings like Nvidia soared, making early believers contemplate early retirement, thanks to its staggering 82% rise.

Too good to be true? As fund managers tilt their hats to the bull, with risk appetite hitting a multiyear peak, the underpinnings look solid. Consumer spending is strong, job markets are robust, and inflation seems to be on a leash, despite some hiccups. The Fed's rate cut dreams might have been a tad optimistic, but the dance continues. Yet, some market experts are raising their concerns, questioning whether corporate profits can keep pace with the market’s high spirits. With stocks trading at 21 times projected earnings, the margin for error is slim.

Looking ahead…history’s playbook suggests that when the S&P 500 starts strong, it often stays strong. So, as investors look ahead, the question isn't just about how high we can go, but how we navigate the inevitable bumps without getting burned.

SPONSORED BY THE RUNDOWN AI

Learn how to make AI work for you.

How do you stay up-to-date with the insane pace of AI? Join The Rundown – the world’s fastest-growing AI newsletter with over 500,000+ readers learning how to become more productive using AI every morning.

1. Our team spends all day researching and talking with industry experts.

2. We send you updates on the latest AI news and how to apply it in 5 minutes a day.

3. You learn how to become 2x more productive by leveraging AI.

Subscribe with one click.

IN THE KNOW

Headline Hustle

🧑‍⚖️ Sam Bankman-Fried gets sentenced to 25 years in prison. FTX founder Sam Bankman-Fried received a 25-year prison sentence for orchestrating a massive fraud that led to the collapse of his cryptocurrency exchange and hedge fund. Despite federal prosecutors seeking 40 to 50 years, the sentence falls between their request and Bankman-Fried's plea for a shorter term. Judge Lewis Kaplan emphasized the severity of the crimes and Bankman-Fried's lack of remorse. Bankman-Fried plans to appeal, while others involved await sentencing.

🔨 Home Depot acquires specialty distributor SRS for $18.25 billion. Home Depot announced its acquisition of SRS Distribution for $18.25 billion, marking its largest-ever deal and signaling a strategic move to capture more professional clientele. With half of its current business stemming from professional customers, Home Depot aims to bolster its presence in the lucrative construction sector. CEO Ted Decker sees the acquisition as a significant expansion opportunity, expecting to increase the company's market potential by $50 billion. Despite anticipated dilution to earnings per share, the deal is projected to enhance cash earnings per share within the first year.

💰️ Biden administration OKs $60 million in funding to repair Baltimore bridge. Maryland Governor Wes Moore issued a sobering assessment Thursday, emphasizing the arduous journey ahead in the aftermath of Baltimore's Francis Scott Key Bridge collapse. With federal aid approval totaling $60 million, efforts to remove debris and resume shipping routes are underway. Moore stressed collaborative efforts between government and industry to address the crisis, including investigations and recovery operations. The tragedy's impact on the local economy and the challenges faced by affected workers and commuters highlight the gravity of the situation.

POLICY

The U.S. has revamped the way it collects info on race and ethnicity

The U.S. government is changing the way it asks you about your race and ethnicity, and that includes the US census.

Starting this Friday, as per the Office of Management and Budget, the government will collect information based on race and ethnicity by using a single question and include a new category as a choice: a Middle Eastern and North African category.

The questions that ask for a respondent’s race or ethnicity will now include 7 categories, as opposed to the 6 before: White, Hispanic or Latino, Black or African American, Asian, American Indian or Alaska Native, Middle Eastern or North African, and Native Hawaiian or Pacific Islander. This is the first time in three decades that the standards have changed.

Not everyone's popping champagne, though. The Arab American Institute voiced concerns that the new MENA checkbox, while a visibility victory, misses the mark on capturing the full spectrum of the Arab American community, notably excluding Black Arabs and Armenian Americans.

Others are embracing and praising the change. The Congressional Asian Pacific American Caucus called this a "historic milestone," highlighting the importance of recognizing the unique experiences within the AANHPI communities.

Big picture: this isn’t just bureaucratic reshuffling. It's a stride towards recognizing the full range of American identities.

SNIPPETS

Pulse Points

• The Boeing union is using what’s happened lately with the airline to get a seat on the board and a say in plane safety.

• Google.org is initiating a $20 million accelerator program to support nonprofits using generative AI, including projects like AI-powered writing feedback tools and making development research accessible.

• Reddit shares have fallen below their initial trading price after a post-IPO rally, attributed to a report by Hedgeye Risk Management calling the stock "grossly overvalued."

• Kia is recalling over 400,00 Tellurides because they continue to move while in park.

• Xiaomi, the company known more for its smart phones then EVs, has launched its first electric vehicle, receiving over 50,000 orders in the first 27 minutes, with prices starting at approximately $29,872.

Was this email forwarded to you? Feel free to sign up using the following link: https://www.pulseofprogress.info/

⚡️ Want to feature in this newsletter?

Elevate your brand's visibility to over 7,000+ decision makers by partnering with Pulse of Progress and seize the chance to connect with our rapidly expanding, highly engaged audience! Reach out for more details.