Inflation concerns dominated the market, with music stocks posting their steepest weekly decline in nearly a year. The U.S. annual inflation rate rose to 3.5% in March from 3.2% in February, the U.S. Department of Labor's Bureau of Labor Statistics said Wednesday. This raised concerns that the US Federal Reserve (Fed) may change its rate cut plans in June. There wasn't much good news for investors, coupled with rising oil prices and lower-than-expected profits at banking giants JPMorgan Chase & Co. and Wells Fargo & Co.
This week, 14 of the 20 companies on the Billboard Global Music Index fell in value. The index fell 3.2% to 1,782.67, its biggest single-week decline since the week ending July 28, 2023, when it fell 4.2%. Still, the Billboard Global Music Index is up 16.2% since the beginning of the year and 43% most recently. 12 months.
Most major stock indexes fell this week. In the United States, the S&P 500 index fell 1.6% to 5,123.41 and the Nasdaq Composite Index fell 0.5% to 16,175.09. South Korea's KOSPI composite index fell 1.2% to 2,681.82. China's Shanghai Composite Index fell 1.6% to 3,019.47. The outlier was Britain's FTSE 100, which rose 1.1% to 7,995.58.
Among music stocks, iHeartMedia was the week's biggest gainer, rising 6.3% to $2.18. The improvement came despite a lack of market-moving news and regulatory filings from radio giants. In fact, the main reason iHeartMedia has been in the news lately isn't flattering. Forbes reported in March that iHeartMedia paid ad revenue from Sen. Ted Cruz's podcast, Verdict, to his political action committee (PAC). As a result, BP America asked iHeartMedia not to place ads on podcasts that would funnel ad revenue to PACs. Campaign watchdog groups Campaign Legal Center and End Citizens United allege that Mr. Cruz is violating federal law, and on Tuesday (April 9) formally requested an investigation from the Federal Election Commission. did.
Hypnosis Songs Fund, a London-listed company that invests in music copyrights, rose 5.7% to 74 pence ($0.92). Since HSF's board released its damning due diligence report on March 28, HSF has gained 7.2%. The report, conducted by Shot Tower Capital, alleged that the fund's investment manager, Hypnosis Song Management, inflated returns and misled investors about its control. Investing in your portfolio. The board plans to announce its conclusions on the due diligence report by April 26 and seek shareholder approval for the proposal at an unannounced special general meeting.
Sphere Entertainment fell 10.7% this week to $41.80. On Monday, the company's stock fell 3.8% to $45.00 after Seaport Global downgraded Sphere Entertainment from a buy rating to neutral, citing growth concerns. The stock fell another 5.3% on Friday, despite no news or regulatory filings. U2's 40-show residency ended on March 2, and the band grossed $56.5 million from 10 concerts, topping Billboard's box score for February. Rock band Phish will perform four shows at the Sphere in Las Vegas from April 18th to 21st.
Believe shares fell 9.8% to 14.88 euros ($15.88) after Warner Music Group announced on Sunday that it would not make a bid for the Paris-listed company. On March 7, WMG announced its interest in acquiring Believe, saying it would pay “at least” 17 euros per share. This is significantly higher than the CEO-led consortium's offer of 15.00 euros ($16.01) per share. Investors immediately bid up Believe shares to nearly 17 euros, betting that WMG's efforts would be successful. From March 28th to April 2nd, Believe traded as high as $16.92, and from March 25th to April 5th, it closed above €16.50. With WMG out of the picture, the consortium's initial offer has now been capped at 15 euros per share.
The decline in the index's most valuable companies was relatively modest. Universal Music Group fell 2.0% to 27.04 euros ($28.85), and Spotify fell 3.2% to $300.53. Live Nation fell 2.4% to $100.99. CTS Eventim fell 3.8% to 82.00 euros ($87.50). HYBE fell 4.9% to 213,000 won ($154.28). Warner Music Group bucked the trend, rising 0.3% to $33.44 after deciding not to pursue Believe.
The quarterly earnings report will give the stock a chance to rebound in the coming weeks. Of the release dates announced so far, Spotify will launch first on April 23rd, followed by Believe on April 24th, Deezer on April 29th, SiriusXM on April 30th, and Universal Music Group on April 23rd. May 2nd and Warner Music Group's May 9th.