It's Friday! If you think prices at your local gas station are insanely high, you're right. But there might be a limit to how high they can get as drivers start to balk at the cost — right as summer driving season kicks off.
One last push before the long weekend…
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1. Gas prices have hit record after record in recent weeks. But pain at the pump has gotten so bad that demand for gasoline is dipping just ahead of big travel months.
The average gallon of gas in the US hit $4.60 Thursday — up 51% from a year ago. And on a four-week rolling basis, demand has hit its lowest level during this time of year since 2013, excluding the pandemic-period in 2020.
But high prices are hitting air travelers even harder. Jet fuel prices have doubled since last year, outstripping the 51% jump in year-over-year gas prices.
Airfares are seeing record jumps and Bloomberg reported that major airlines are planning 12% fewer flights this summer due to a pilot shortage.
According to one hedge fund manager, the Fed won't be able to slow energy inflation either.
"While the [Fed's] knee-jerk reaction to the COVID outbreak was, let's say, necessary, in the end, clearly printing 40% more money than was in circulation in the first place was a little too much," Kyle Bass told CNBC Thursday.
"We're going to see energy and food prices march higher over the next year…and unfortunately the Fed's monetary policy just can't change that."
In other news:
Patrick Semansky/AP
2. Global stocks rise early Friday, edging toward their first weekly win two months. US futures also showed signs of optimism, with the S&P 500, Dow Jones, and the Nasdaq 100 rising. Here are the latest market moves.
3. On deck today: Big Lots, Mimi's Rock, and Viomi Technology, all reporting. Plus, look out for the Advance Economic Indicators Report at 7:30 am ET.
4. One expert explained how today's housing market is different (and similar) to the real estate booms and busts from the past. "People always say, 'It's not going to be like 2005,' and yeah, that's pretty much certain." Read analyst John Wake's full breakdown.
5. Risks to Tesla stock are piling up and investors should prepare for less upside ahead, according to Jefferies. In lowering its price target on shares of the EV-maker by 16% to $1,050, analysts cited an "uncomfortable pile of negative news" surrounding CEO Elon Musk. They expect the headlines to weigh on shares.
6. Sequoia Capital sees a prolonged market downturn. The firm urged its startups in its portfolio to conserve cash for the market environment ahead. "We do not believe that this is going to be another steep correction followed by an equally swift V-shaped recovery."
7. Fed Vice Chair says stablecoins could exist alongside a digital dollar. In the wake of stablecoin terraUSD's dramatic collapse, Lael Brainard told lawmakers a central bank digital currency could one day coexist with — and be complimentary to — stablecoins. Here's what else Brainard said.
8. The CIO at $177 billion Huntington Bank shared why he doesn't see a recession ahead for the US economy. Fears are rising as growth slows, but John Augustine doesn't think a downturn is likely — and he shared three reasons why.
9. An award-winning fund manager explained how the stock market's drop could degenerate into a global crash. The S&P 500 could sink to its pre-COVID high, Michael Gayed said, and the nation could be heading toward a deflationary environment. He thinks investors should steer clear of one thing to avoid getting their "face ripped off."
Andy Kiersz/Insider
10. GameStop extended a two-day rally on Thursday to as much as 67%. The stock is still down more than 70% from its record high in January 2021 — but it's surging amid a renewed crypto push and meme-stock momentum.
Keep up with the latest markets news throughout your day by checking out The Refresh from Insider, a dynamic audio news brief from the Insider newsroom. Listen here.
Curated by Phil Rosen in New York. (Feedback or tips? Email prosen@insider.com or tweet @philrosenn.) Edited by Hallam Bullock (tweet @hallam_bullock) in London.
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