Tuesday's Markets Update (September 26, 2023)

28 Sep 2023 by rate3

On Tuesday, The Nasdaq fell almost 2%, breaching the important technical support at 13K, with tech giants such as Tesla, Apple, Amazon, Microsoft, and Alphabet all seeing notable declines. The sell-off came after data showed that consumer confidence and new home sales have fallen in recent months, with prices still rising. Meanwhile, BTC continued to hold above 26K. Other news: The SEC has delayed its decision to approve spot ETH ETFs.

Details

Home prices ticked up 0.1% in July 2023, the first gain in five months, despite forecasts of a 0.3% drop. Chicago, Cleveland, and New York saw the biggest gains, while Las Vegas, Phoenix, and San Francisco saw the biggest declines. At the same time home sales decreased to -8.70 percent. Also consumer confidence dropped to 103.

Comment

Rising home prices with decreasing sales and consumer confidence are signs of an upcoming recession. Economists have observed this pattern historically, as consumers with declining confidence are less likely to make major purchases, such as homes. Additionally, rising home prices can make it more difficult for first-time homebuyers to afford a home, which can further dampen demand.

Fed is also concerned about rising home prices, as they can contribute to inflation. As a result, the Fed is likely to continue hiking interest rates in an effort to cool the housing market and bring inflation under control. However, higher interest rates can also make it more expensive to borrow money, which could further dampen demand for homes.

Overall, the combination of rising home prices, decreasing sales, and consumer confidence are signs of an upcoming recession. The Fed's actions to combat inflation are likely to further exacerbate this trend.

Crypto

SEC has delayed its decision on whether to approve spot Ethereum exchange-traded funds (ETFs) from VanEck and ARK 21Shares. The SEC said it has received no public comments on either proposal and has extended the deadline for a decision to December 25 and December 26, respectively.

Comment

The SEC's handling of the spot crypto ETF proposals reminds me of a science fiction movie with alien body snatchers invading the highest levels of power and forcing them to make disastrous decisions at the last critical moment, even when everything seems to be aligned for a solution that would benefit all of humanity.

How can anyone believe the outrageous claim that the SEC received no public comments on these proposals, despite the unprecedented level of public attention to the issue and the involvement of so many major crypto companies?

How many insectoids from Alpha Centauri do we have in the SEC?