| Good morning. Changpeng Zhao gets four months in prison. Traders await Fed rate decision. Amazon cloud sales boost earnings. Here's what's moving markets. — Isabelle Lee Binance founder Changpeng Zhao was ordered to spend four months in prison for failures that allowed cybercriminals and terrorist groups to freely trade on the world's largest cryptocurrency exchange. Zhao was sentenced Tuesday by US District Judge Richard Jones in Seattle. The outcome closes a long-running probe for the Justice Department, which had sought to make an example out of Zhao to an industry rebounding from a slew of high-profile scandals. Zhao has already paid a $50 million fine and stepped down as CEO as part of a plea deal with the government in November. Binance also pleaded guilty to anti-money laundering and sanctions law violations, agreeing to pay a $4.3 billion penalty and appoint an independent monitor to oversee compliance at the company. Equities fell to their worst month since September on speculation that Federal Reserve officials will keep rates unchanged at a two-decade high when they conclude their meeting Wednesday — a perception that also drove bond yields up alongside the dollar. The meeting, to be followed by a press conference by Fed Chair Jerome Powell, came after economic data showed a plunge in consumer confidence and persistent wage pressures. The last time Powell spoke, he pointed to the lack of further progress in taming inflation and to enduring strength in the labor market. The latest data — in tandem with expectations for a robust employment report on Friday — aren't likely to lead him to change his tune. The S&P 500 fell 1.6%, while Treasury two-year yields topped 5% — the highest level since November. Amazon's cloud unit posted the strongest sales growth in a year, a sign that the retailer's most profitable unit is recovering from a slump. Despite the strong cloud performance, the company's sales forecast for the current quarter fell short of estimates. Amazon said revenue will be $144 billion to $149 billion in the period ending in June. Analysts, on average, projected $150.2 billion. CEO Andy Jassy in recent years has cut costs and focused on profitability in Amazon's central retail business, laying off thousands of people and touting a more efficient warehouse network. At the same time, he's backed big investments in artificial intelligence services that Amazon expects to generate tens of billions in revenue in the coming years. Amazon shares gained about 2% in extended trading after closing at $175 in New York. The stock has jumped about 15% so far this year. BlackRock is set to get as much as $5 billion from Saudi Arabia's sovereign wealth fund to invest in the Middle East and build an investments team, one more sign that the world's largest asset manager is intensifying efforts to grow in the kingdom. The new entity, BlackRock Riyadh Investment Management, will be set up under a partnership between BlackRock and Saudi Arabia's Public Investment Fund. It will incorporate strategies across asset classes, including private and public markets. Investments will be managed by a Riyadh-based portfolio management team and supported by BlackRock. The announcement comes amid BlackRock's aggressive push to grow its presence in Saudi Arabia. This week the $10.5 trillion asset manager hosted a gathering of top executives and government officials in Riyadh, its first event of this scale in the Saudi capital. It's a holiday across much of Asia, with Japan and Australia the key markets remaining open. South Korea trade figures for April will be released, with economists forecasting exports soared 15% from a year earlier. Australia Treasurer Jim Chalmers will speak in Sydney. Wednesday is also a holiday in much of Europe.
In the US, apart from the Fed rate decision, there's the Treasury's quarterly refunding announcement, JOLTS job openings, ADP employment change and ISM Manufacturing. Here's what caught our eye over the past 24 hours: - Cocoa prices swing as liquidity overshadows supply issues
- BOJ accounts suggest Japan intervened Monday to support yen
- Australian home prices climb further as downside risks build
- LVMH said to mull options for Marc Jacobs amid buyer interest
- Weiss multistrategy adviser bonuses spark fight with Jefferies
- US agency to reclassify marijuana as a less dangerous drug
- Alphabet CEO Sundar Pichai nears billionaire status as AI booms
- McDonald's to test bigger burger to meet diners' appetite
Survey: The trading volume of US equity options hit a record last year, boosted by contracts that have zero days until expiration, also known as 0DTE. Do you think these should be expanded to include single stocks? Share your views in Bloomberg's MLIV Pulse survey. As Isabelle notes, Amazon shares rose in late trading after the company beat first-quarter earnings estimates while proving a bit cautious on guidance. Nonetheless, the company's impressive growth solidifies the robust outlook for the Magnificent Seven. Amazon's results add to a solid set of numbers from its Magnificent Seven peers, which have been defying expectations for a growth cooldown so far. Between Amazon, Meta, Alphabet and Microsoft, their earnings-per-share grew by double to triple digits for the reporting quarter (offset by Tesla's 47% EPS drop). The broader S&P 500 is on pace for 5% growth. The group's profit-growth supremacy will prompt dip-buyers to quickly re-emerge after today's broader pullback in stocks. Tech Goliaths are proving they can continue to deliver on sky-high expectations, which will go a long way to ease concerns over valuations and lure investors back. Tatiana Darie writes for Bloomberg's Markets Live blog in New York. Follow her on X at @tatianadariee. | 
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