Thursday's Markets Update (April 4, 2024)

04 Apr 2024 by rate3

On Thursday, stocks rose as hopes for Fed rate cuts grew again after jobs data and Powell switched to dovish comments once more. All sectors gained, with tech (Meta +3%) and real estate leading. Alphabet fell on news of potential AI search fees. On world markets, ECB bureaucrats reiterated their pro-growth stance, weakening the Euro as service PMI grew, while copper prices jumped on China's economic recovery hopes. The crypto market improved on technical volatility, with BTC reaching 68K and ETH - 3.4K. Bitcoin Cash (+7%) and Binance (+5%) were among the best daily performers.

Details

Jobless claims unexpectedly surged to 221Th, the highest in two months. This contradicts recent strong labor data, suggesting higher interest rates might be slowing the job market. (DOL)
Job cuts jumped to 90,309 in March, the highest in 15 months. Tech (14,224) and government (36,044) led the losses. This brings Q1 job cuts to 257,254, exceeding Q4 2023 but down from Q1 2023. Cost-cutting is the main driver, with tech still leading job cuts overall. (Challenger)
Imports surged to a 16-month high of $331.9B in February, driven by a $7.1B increase in goods. Consumer goods (phones, household items) led the rise, followed by food, beverages, and auto parts. Service imports also climbed, with travel and transportation sectors showing the biggest gains. (Census)

Crypto

Memecoins dominated the crypto market in Q1 2024 (RWA being the second), surging over 1300% on average. Solana (SOL) was a major driver. This outpaced other sectors by a wide margin, with Brett (over 7700% gains) leading the pack. The sector now boasts 6 major cryptocurrencies by market cap. This impressive performance has caused mixed reactions within the crypto market. (source)

World Markets

Eurozone services sector PMI (51.5 in March) grew modestly after 6 months of decline. Sales improved, but mainly domestically. Businesses added staff, though slower than before. Price pressures eased to multi-month lows. Service providers remain optimistic about future activity. (SP)

Currencies

Dollar weakens for a third day (104) as expectations of Fed rate cuts grow. Jobless claims and March job cuts rose, and service sector growth slowed. Investors await Friday's jobs report for clues. Fed Chair Powell signaled rate cuts likely in 2024, but data dependence remains. The Euro and other currencies gained against the dollar.

Commodities

Copper prices soared to a 14-month high (over $4.20/lb) due to a weaker dollar and supply concerns. Lower US interest rates (expected due to weak service sector data) boosted demand from global manufacturers and key importers like China (despite some demand worries there). Mine disruptions in Africa added to supply risks, prompting Chinese smelters to cut output.