Equities Remain Resilient During Conflict – Domestic Equity Markets

A broad-based advancement propelled stocks higher in April, as markets shook off tensions surrounding geopolitical concerns, oil price volatility, and inflationary fears. Strong corporate earnings and robust economic growth drove equities across various sectors higher, in a dramatic turnaround from approaching the precipice of correction territory.

Technology sector stocks rebounded in April as continued investment in artificial intelligence (AI) drove future growth prospects higher. Energy and oil sector stocks performed well, but are still subject to tremendous volatility due to the uncertainty of events in the Middle East. (Sources: Dow Jones, S&P, Nasdaq)

Rates Under Pressure As Fed Grapples With Uncertainty – Fixed Income Update

Treasury yields rose in April as persistent inflationary anxiety and tenacious economic growth drove Treasury prices lower. The 10-year Treasury Bond yield rose to 4.40% at the end of March, up from 4.19% at the beginning of the year. The equivalent of the Fed in Europe, the ECB, is considering raising interest rates in Europe to combat inflationary pressures brought about by the war with Ukraine and the conflict with Iran. Natural gas prices throughout Europe spiked 70% in March following the closure of the Strait of Hormuz.

The anticipation of a newly appointed Fed Chair drew mixed expectations among fixed income analysts and economists. Some believe that Kevin Warsh may hold rates steady due to underlying domestic growth and inflation data, while others expect the new Chair to attempt to cut rates in order to help minimize the duress many consumers are experiencing with elevated rates. Fed members are currently at odds as to cutting rates or holding them steady, which is eventually decided on by the Federal Open Market Committee (FOMC). (Sources: FOMC, Federal Reserve, U.S. Treasury)

U.S. Crude Oil Exports Rising – Domestic Energy Sector

The closure of the Strait of Hormuz has created a global shortage of crude oil affecting Europe, Africa, the Americas, and Asia. The effective closure of the Strait of Hormuz has blocked approximately 15.8 million barrels per day of oil and refined products, representing about 15% of the global oil supply, amounting to the largest supply shock since the 1973 oil embargo.

U.S. oil exports exploded following the Consolidated Appropriations Act of 2016, a bipartisan legislation that repealed a 40-year-old ban on crude oil exports instituted by the 1975 Energy Policy and Conservation Act. The country’s production and exporting capability has risen exponentially since the wide spread utilization of hydraulic fracking in the early 2000s. U.S. oil production is currently eclipsing 14 million barrels per day, with roughly 5.2 million barrels being exported per day. Oil industry experts estimate that oil exports will eventually be constrained to 5-6 million barrels per day, due to limited infrastructure and port availability to load exporting tankers. (Sources: EIA, World Bank, U.S. Congress)

How To Better Protect Your Accounts Instead Of Using Passwords – Consumer Cybersecurity

Passwords are becoming more susceptible to hackers and security breaches as technological advancements have facilitated the compromise of a once secure process.

Passkeys are saved passwords that appear on user devices and are activated with some form of identification by Face ID or Touch ID technology. Additionally, these passkeys are shared among all devices under the same username, housed in a single system that lists each website or subscription to its according log-in information.

Forgetting passwords or guessing the wrong password and being locked out no longer becomes an issue with passkeys. The ease and security of using passkeys is growing and becoming available on more devices as updates occur. (Source: Cybersecurity and Infrastructure Security Agency (CISA))

How Electricity Costs Vary From State To State – Consumer Utilities Overview

Each state has its own regulations and weather characteristics that directly affect the usage of electricity by consumers. Consumer electricity bills also vary by state depending on the cost of making and delivering power, which is distinctive everywhere. The most significant factors include local generation types, how much transmission and distribution infrastructure is needed, state regulations, and how much electricity households consume.

States that rely more on low-cost hydropower, nuclear, or natural gas often have lower bills than states that depend on imported fuels or expensive peak power rates. Long transmission lines, storm hardening, wildfire mitigation, and aging poles and wires are factors that raise delivery costs.
 Some states tightly regulate utilities, while others use competitive retail markets, ultimately changing how costs are passed through to customers. Rural or spread-out states have fewer customers sharing fixed grid costs, while dense urban areas can have more complex delivery systems.
 Weather is becoming more of a determinant in the costs of electricity, as hot climates, cold winters, or seasonal tourism can raise monthly usage, overall elevating bills.

Hawaii and Alaska tend to have especially high bills because they have limited grid connections and often depend on imported fuel. California’s bills are shaped by wildfire-related grid spending and liability costs, while northeastern states are often affected by natural gas constraints and winter demand spikes. (Sources: EIA, Dept. of Energy)