Tuesday's Markets Update (March 5, 2024)

06 Mar 2024 by rate3

On Tuesday, Dow, S&P and Nasdaq drop more than 1%. Tech giants like Tesla, Microsoft, and Meta lead a decline on concerns over China and tech sector health. Gold reached a new ATH on weak PMI and expectations of rate cuts. BTC crashed spectacularly to 59K after touching ATH at 69K as a result of a massive Wall Street bear attack and taking down with it the rest of the crypto market. Some major coins such as Bitcoin Cash (-14%), Cardano (-11%), Polygon (-11%) and Algorand (-10%) depreciated for ten percent or more within few hours.

Details

Services sector growth slowed in February (to 52.6 from 53.4), despite rising business activity and new orders. Employment and supplier deliveries contracted, while inflation pressures eased. Concerns remain regarding inflation, employment, and geopolitical conflicts. (ISM)

Crypto

Solana DEXs smash weekly trading volume record, exceeding $11 billion (154% increase) and surpassing previous high of $9.88 billion. Orca and Raydium (DEXs) on the Solana network saw $4.5B and $3.52B in trade. (source)

World Markets

The Eurozone Composite PMI rose to 49.2 in February, indicating near-stabilization of the economy. Growth in service sector activity and contractions in manufacturing output continued. France and Germany experienced modest growth, while Ireland and Spain observed solid expansions. (SP)
Industrial producer prices in the Eurozone decreased in January, marking a moderation from the previous month. (EUS)

Commodities

Gold hits a new record high ($2,130) on weak PMI and factory orders, fueling expectations of rate cuts (55% chance priced in for June). Geopolitical tensions and recession fears add support. Investors eyeing jobs report and Powell's speech for further clues.