Hi everyone - I've gotten a lot of inbound on how to handle IB interview questions on the markets etc. The first step is to have a daily pulse on what is going on. If you dont check news daily (it doesnt have to be a lot of sources, just a few high quality ones) then when you speak to peers or interviewers (who are front office) your knowledge will look outdated, worth spending time in the morning 10-15 mins getting smart on the all the big stories moving stocks each day
For those undergrads interviewing with on campus student finance clubs in the next few weeks, here are a few bullets from today to get you started with - these are things then you can follow in the weeks ahead (yes and new items will pop up that are top of mind in the market)
Example using today:
- AI-related names have been trading down due the massive amount of capital being raised (especially debt capital), yields are high due to inflation (oil price are high) which makes debt financing more expensive, the inflation reading (CPI) this morning was higher than expected too
-As a result, market participants are watching every single data point on Anthropic's upcoming IPO - the timeline and the valuation. If any slippage any anyt of these it will be considered negative (the are having an investor day today fyi so you should get info)
-This could also hurt M&A activity because debt is used to fund deals (the ibanks started reporting earnings this week and do comment on what they are seeing)
-Investors in recent days have been selling AI-related stocks and rotating into safe-havens like healthcare, consumer staples and defense
None of this is investment advice its meant to show how students can key in on the most important things moving the market - its usually 1-3 at any given moment. My advice is to use this as a starting point and then follow what happens with these items in the coming weeks - you can use this as a jumping point to then in hone in on specific companies and/or sectors