Monday's Markets Update (September 25, 2023)

26 Sep 2023 by rate3

On Monday, Texas' manufacturing activity is down, but the Nasdaq index rose, boosted by Amazon investing USD 4 billion in AI and Netflix settling a labor dispute with screenwriters. BTC and ETH are experiencing mixed performances, with BTC holding above 26.2K and ETH hovering below 16K. Other news: Crypto regulation bills could be delayed.

Details

Manufacturing activity in Texas deteriorated in September 2023, according to the Federal Reserve Bank of Dallas. The business activity index fell to -18.1, despite a rebound in the production index to 7.9, its highest reading of the year. New orders also improved, but remained negative at -5.2. Employment growth and workweeks were stronger in September, but uncertainty about the future outlook increased.

Comment

The labor market is still strong, but the economy is deteriorating. The strong labor market is a positive sign, as it suggests that businesses are still hiring and that the economy is not in a recession. However, the rising uncertainty about the future outlook is a concern. Businesses may be hesitant to invest or expand if they are unsure about what the future holds. This could lead to slower economic growth and job losses in the future.

It is important to note that the labor market is a lagging indicator of economic health. This means that it can take some time for the labor market to show signs of a recession, even after the economy has already started to slow down. Therefore, it is important to pay attention to other economic indicators, such as GDP growth, inflation, and consumer spending.

Crypto

Crypto regulation bills could be delayed if US lawmakers don't agree on a government spending bill by September 30.

Comment

It is paradoxical that small and medium-sized businesses would benefit if democratically governments were to stop operating. This is because governments have become too bureaucratic and over-regulated, and their actions often disrupt businesses more than they help them. Only contemporary, illiterate, mostly non-elected, clueless governments can shut down literally all businesses around the world or start wars that are not in the best interests of their citizens. Complete decentralization is the only viable solution left to deal with that .