First it was Apple Pay, now it's Apple Bank? Apple has launched its first savings account, which enables Apple Card credit card owners to open a high-yield savings account through the company. The service, which is available through partner Goldman Sachs, offers a 4.15% annual percentage yield (APY) and has no minimum balance requirements, deposit requirements, or fees. Apple Card users who open a savings account will see cash back earned from Apple Card purchases automatically go into their savings account. The new service is part of Apple's strategy to diversify its business and reduce reliance on declining device sales. To put things in perspective, the majority of banks only offer 0.06% to 0.17% for their savings accounts. The move is expected to put more pressure on regional banks that are already struggling with declining deposits.
EQUITY
Major U.S. stock indexes posted modest gains on Monday in a consolidative price action, with the financial and industrial sectors leading the rally while the New York Fed reported a rebound in manufacturing activity in April. Markets are looking forward to corporate results this week and monitoring clues on the Fed's decisions.
GOLD
Gold recently printed the highest price for the year, and markets are waiting for it to reach the same high as in early 2022 and mid-2020. The strengthening dollar, however, weighed on the yellow metal as bond yields climbed higher. The lower CPI printed last week is a point of concern as more investors will flood to risky assets on either the Fed's pause or pivot.
OIL
Oil prices held steady after a 2% drop in the previous session. Investors are waiting for economic data from China to see if it can offset weakening demand elsewhere. The International Energy Agency predicts China will lead 2023 demand growth but warns that OPEC+ output cuts may worsen the oil supply deficit in Q2 2023.
CURRENCY
The US dollar initially rose due to strong economic data, indicating a potential rate hike by the Fed in May by another quarter point. However, it eased later on Tuesday, with the dollar index falling slightly. The probability of a hike is currently at 81.5% with 15 days remaining.
