Monday's Markets Update (October 2, 2023)

03 Oct 2023 by rate3

On MondayTraders cheered the better-than-expected ISM Manufacturing PMI, and the Nasdaq rose slightly on the first day of Q4. However, investors are concerned that high interest rates could persist, putting pressure on stocks in the coming months. Both BTC and ETH saw increases, with BTC surpassing $28.8K, and ETH reaching $1.76K. In other news, the CFTC Chair called for a substantial regulatory framework for cryptocurrencies, including DeFi.

Details

The PMI contracted in September, but at the slowest pace in ten months (rose to 49 from 47.6 in the previous month). New orders fell at a slower pace, production rebounded, employment rebounded, and prices declined at a slower pace. These signs of improvement raise hopes that the US manufacturing sector is turning a corner.

Comment

The Purchasing Managers' Index (PMI) is a leading indicator of economic activity, and a PMI reading below 50 indicates that the manufacturing sector is contracting. The recent rebound in PMI may be temporary, as higher energy prices and the Fed's continued interest rate hikes are likely to weigh on manufacturing activity in the coming months.

Crypto

CFTC Chair Rostin Behnam urged for a substantial regulatory framework for the booming cryptocurrency market, saying it's urgent to update policy frameworks to better regulate the digital asset industry. His comments contrast with those of SEC's Gary Gensler, who has said that current securities laws are enough to regulate the industry.

Comment

We have a "Dumb and Dumber" situation with crypto regulations. On one side, we have "Dirty Garry" arguing that 100-year-old legislation is perfectly fine to regulate 21st-century technology. On the other side, we have a former commodity trader with a Juris Doctor degree from Syracuse University who wants to impose heavy regulation on everything he can reach to satisfy his political ambitions, including DeFi. Is this what we as people deserve because we still refuse to erase the whole centralized governance system to the ground?