Market Overview - The S&P 500 closed approximately 1.7% lower, erasing a small weekly gain, while the Nasdaq fell about 2.4% and the Dow Jones decreased by 1% [6][7]. - Most stocks in the S&P 500 were down, with 316 declining and only 186 advancing [7]. Oil and Economic Impact - Brent crude oil prices rose to $108 per barrel, an increase of over 5.5%, while WTI increased by 4%, reflecting traders' sentiments regarding the ongoing conflict in the Middle East [4][5]. - The potential for oil prices to rise further could impact consumer prices and the broader supply chain, particularly if the 10-year Treasury yield approaches 5% [5][6]. Company Performances - Brown-Forman, the owner of Jack Daniel's whiskey, saw a stock increase of 9.6% amid speculation of a potential acquisition [9][10]. - Hertz Global's stock rose by approximately 9.2%, and Avis Budget gained about 13%, driven by increased demand for car rentals as travelers seek alternatives to congested airports [11][12]. - Olaplex Holdings surged by 51% following Henkel's announcement of a $1.4 billion acquisition deal [14]. Decliners - SanDisk's stock fell by over 11% after Google announced a new algorithm that could enhance storage efficiency [16]. - SNAP shares dropped by 10.7% due to an EU investigation into user age verification practices [17]. - Miller Knoll, a maker of office furniture, experienced a significant decline of 22% after reporting earnings that indicated a negative impact from the Middle East conflict and rising transportation costs [18][19]. Bond Market - The bond market experienced a selloff, with the two-year yield rising by about 11 basis points, indicating weak demand in recent auctions [20][21]. Subscription Services - Netflix announced a price increase for its subscription plans, with the standard plan rising by $2 to $15.99 per month, marking the first increase in a year [22][23]. Cryptocurrency in Mortgages - A new product linking digital assets to down payments on Fannie Mae eligible home loans was launched by Better Home and Finance Corp and Coinbase, allowing borrowers to use Bitcoin as collateral [25][27].

Core Insights - The average sales price for U.S. homes has remained around $400,000 since the end of 2021, leading many homebuyers to seek mortgages to cover these costs [1] - A new directive from the Federal Housing Finance Agency (FHFA) mandates that mortgage giants Fannie Mae and Freddie Mac develop proposals to consider cryptocurrency as an asset in mortgage risk assessments [2][3] - The FHFA's director, Bill Pulte, emphasized that this directive aligns with the vision to position the U.S. as a leader in the cryptocurrency space [3] Mortgage Assessment Changes - Traditionally, mortgage lenders have excluded crypto assets from their risk assessments, focusing instead on conventional assets like stocks and bonds [4] - The inclusion of cryptocurrencies in mortgage assessments may present challenges in risk evaluation, but lenders are accustomed to assessing various asset risks [4] - Senator Cynthia Lummis has shown support for the FHFA's directive, proposing legislation to formalize the inclusion of crypto in mortgage underwriting [4] Criticism and Concerns - The directive has faced criticism, with some arguing that allowing crypto-backed loans could introduce additional stress to the housing market [5] - A group of Democratic senators expressed concerns over the volatility of cryptocurrencies compared to traditional assets, questioning the FHFA's decision-making process [6] - The senators requested further information on the implications of the directive for the housing market and the potential risks involved [6]