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The first quarter concluded on a positive note for stocks, marked by record highs for the S&P 500 and Dow, as markets closed for Good Friday. Tech stocks remained a driving force behind the gains, amidst investor optimism over the potential for a Federal Reserve interest rate cut. However, AMC, the fallen meme stock, failed to participate in the rally, experiencing a 14% decline following the announcement of a stock sale by the movie theater chain.

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Finance

SBF gets 25 years in prison

Yesterday, a US district judge handed down a 25-year prison sentence to Sam Bankman-Fried, once hailed as the crypto king but now disgraced. Prosecutors had sought a lengthier sentence of 40 to 50 years, while Bankman-Fried's defense team argued for six years.

Formerly the CEO of the crypto fund FTX, which experienced both rapid ascent and dramatic downfall, Bankman-Fried was convicted of fraud in November. He was found responsible for $10 billion in missing customer deposits. If he serves his entire term, Bankman-Fried will be 57 upon release, though experts speculate he may not serve the full duration.

During sentencing, Judge Lewis Kaplan cited Bankman-Fried's perjury, noting that he lied to jurors and obstructed justice deliberately. The judge also highlighted the defendant's apparent lack of remorse and propensity for deceit, labeling his truthfulness as "exceptional flexibility."

Bankman-Fried's defense claimed he made decisions based on mathematical reasoning rather than malice. Despite his remorseful remarks about squandering their collective efforts, Judge Kaplan remained unmoved, expressing concern about the possibility of future criminal behavior if Bankman-Fried were set free.

In comparison to other infamous fraudsters, Bankman-Fried's sentence falls in the middle range. For instance, Elizabeth Holmes received an 11-year sentence for fraud related to her blood-testing company, Theranos, while Bernie Madoff, the architect of a massive Ponzi scheme, passed away in prison while serving a 150-year term.

Looking ahead, Bankman-Fried intends to appeal both his conviction and sentence. Meanwhile, former FTX investors have initiated proposed class-action lawsuits against the legal firm representing FTX in bankruptcy proceedings and celebrities who endorsed the failed exchange.

Economy

Fed’s Inflation Meter Rose to 2.5% in February

In February, a crucial gauge of inflation in the United States increased as anticipated, raising questions about whether price escalation will ease enough in the coming months to warrant a midyear interest-rate reduction.

According to the Commerce Department's report on Friday, the overall personal-consumption expenditures price index climbed by 2.5% over the 12-month period ending in February. This figure aligned with predictions made by economists surveyed by The Wall Street Journal. Core prices, which exclude volatile food and energy prices, also saw a 2.8% increase, consistent with forecasts.

Federal Reserve Chair Jerome Powell expressed his satisfaction on Friday, stating, "It's reassuring to observe figures aligning with expectations," during an interactive session at the San Francisco Fed.

In January, the overall PCE index surged by 2.4% compared to the previous year.

Despite last week's reaffirmation by Fed officials of their anticipation for three interest-rate reductions this year, the exact timing of such cuts remains unclear. Powell reiterated on Friday that more inflation data is necessary before officials can confidently assess whether price growth is progressing towards the central bank's 2% objective.

Tech

OpenAI Reveals AI That Can Replicate Human Voices

On Friday, OpenAI unveiled a technology capable of replicating a human voice from a 15-second audio clip but stated that it would refrain from public release until it comprehends potential risks for misuse.

Known as Voice Engine, the program generates an AI-generated rendition of a person's voice from a brief recording and can utilize it to vocalize written text. OpenAI noted that Voice Engine can also reproduce a person's voice in different languages, regardless of the language of the original sample.

Since late 2023, OpenAI has collaborated with a limited group of customers who have been testing the technology. During these trials, Voice Engine has been utilized to aid children in reading, translate content into various languages, and generate voices for individuals who are unable to speak.

Concerns regarding the potential risks associated with producing cloned voices, particularly in an election year, played a role in restricting access to the technology, according to the company.

The rise of generative artificial intelligence technology has facilitated deception, with election officials anticipating confronting AI-generated disinformation on a large scale during the 2024 election cycle. Reports suggest that voters have already encountered AI-driven misinformation, as evidenced by incidents such as an estimated 5,000 to 25,000 robocalls in January urging New Hampshire residents not to vote in the state's upcoming presidential primary.

Politics

3 Presidents Team Up To Defeat Trump

President Biden appeared at a high-profile fundraiser on Thursday night in New York City, joining former Democratic presidents Bill Clinton and Barack Obama on stage. During the event, the trio emphasized the significance of the upcoming 2024 election for democracy and fundamental freedoms.

In a moderated conversation with late-night talk show host Stephen Colbert at Radio City Music Hall, the three men conveyed a shared understanding of the historical importance of the November election. They touched upon familiar themes, highlighting the critical nature of the election.

Despite past tensions and political differences, Biden and his two Democratic predecessors united around a common goal: defeating former President Donald Trump. They compared Biden's leadership to Trump's, referenced Trump's involvement in instigating the Capitol riot on January 6, 2021, and warned that a return to power for Trump could endanger the nation's core values for years to come.

Obama remarked, "We experienced a period where those values were not only de-prioritized but outright violated," referring to Trump's time in office.