Pro-Palestinian protests are sweeping across major US universities, with a unifying message emerging from Princeton University to the University of Southern California. The common chant is “Disclose! Divest! We will not stop, we will not rest!” Signs at Columbia University demand divesting finances from companies profiting from Israeli apartheid, genocide, and occupation in Palestine. Israel denies accusations of genocide, and protesters have various specific divestment demands, from companies linked to Israel to weapons manufacturers. They also call for universities to disclose investments, sever academic ties with Israeli universities, and support a ceasefire in Gaza, but universities have largely refused to comply so far.
The concept of divestment involves selling off shares of a company to avoid complicity in unethical or harmful activities and pressure companies or governments to change policies. Student activists have successfully targeted endowments in the past, leading to divestment from apartheid South Africa, fossil fuels, and private prisons. However, critics argue that divestment campaigns have little impact on corporate behavior or stock prices, and may actually have perverse outcomes by reallocating shares to indifferent investors. Proponents of divestment argue that it raises awareness and stigmatizes partnerships with targeted regimes or industries.
University investments are complex and global, making it difficult to fully divest from companies with Israeli links due to political and trade ties. Student protests demanding divestment from Israeli-linked companies continue, with negotiations between administrators and protesters ongoing but contentious. While progress has stalled in the US inflation rate, with the Federal Reserve expected to start cutting interest rates after the European Central Bank, annual inflation in the US remains higher than in Europe. The European Central Bank is anticipated to start cutting interest rates in June, while the Fed may consider raising rates if inflation stalls or reverses.
Upcoming economic events include earnings reports from companies such as Domino’s Pizza, Amazon, Coca-Cola, AMD, and Apple, Chicago PMI for April and the Conference Board’s consumer confidence for April. The US Commerce Department releases March figures on new orders for durable goods, and the Federal Reserve announces its latest interest rate decision with a news conference featuring Chair Jerome Powell. Earnings reports from companies like Mastercard, Pfizer, eBay, and Hershey are also expected, along with US Labor Department data on the job market for April, including payroll growth, wage gains, and unemployment rate.
