US stocks hit new highs, 42 million people fear they could lose SNAP benefits

Mergers and Acquisitions (M&A) Trends - M&A deal volume is up approximately 9% year-over-year, and deal value is up about 36% year-over-year [4] - The technology sector accounts for about one-third of M&A deals, followed by oil and gas, and life sciences [6] - The industry anticipates a roughly 3% year-over-year increase in deal-making activity, with private equity potentially seeing a 5% increase [13] - Artificial Intelligence (AI) is a significant driver in technology deals [15] Market and Economic Factors - Capital markets are strong, with the S&P 500 expected to end the year at its highest since 2009 [5] - The market anticipates the cost of capital potentially decreasing by approximately 100 basis points over the next 12 months [5][12] - Regulatory bodies are perceived as more M&A-friendly compared to the previous administration, although this is tempered by a rising unemployment rate and moderate GDP growth [6] - The bid-ask gap in deal valuations is narrowing as private equity firms seek to deploy capital and adjust their selling prices [9][10][11][12] Stock Market Performance - Nvidia's market capitalization is nearing $5 trillion [19][20] - The S&P 500 is up 17% this year, but there's a divergence between the traditional market cap weighted index and the equal weighted index, indicating concentrated market participation [23] - Gold prices experienced a crash after reaching all-time highs, with central bank buying being a key factor in the previous surge [26][28] - The market is pricing in rate cuts, with the 13-week T-bill yield already reflecting expectations below the Fed's target range of 4% to 425% [33][34] SNAP Benefits and Economic Impact - A potential freeze on SNAP benefits could result in an average loss of $335 for participating families in Michigan [39] - Approximately 42 million Americans participate in the SNAP program, representing about 12% of the population [41] - The potential loss of SNAP benefits, totaling around $8 billion nationwide, could negatively impact food retailers and lead to increased food insecurity, affecting health and economic stability [40][47]