Thursday's Markets Update (May 9, 2024)

09 May 2024 by rate3

On Thursday, stocks recovered, with most indexes up slightly. Rising jobless claims hint at a cooling labor market, potentially prompting a Fed rate cut. Housing, energy, and materials led gains, while Airbnb shares slumped after outlooks fell short. Tech giants were mixed. Globally, Bank of England held its rate at 5.25% signaling potential cuts soon, which led to EU stocks rally. BTC is up back to 62K while ETH is still on 3K. The rest of crypto market is mostly in light green with SOL (+3%), LINK (+2) and BNB (+1%).

Details

Unemployment claims unexpectedly spiked to a nine-month high of 231K, raising concerns about the labor market's health. This surge breaks a trend of lower claims and suggests the Fed may need to reconsider its monetary policy plans. (DOL)

Crypto

Crypto markets boomed in Q1 2024, fueled by institutions, friendlier regulations, and rising retail interest in blockchain tech. Robinhood is capitalizing by adding new crypto options and improving trading features. It has $26 billion in digital assets under its custody. (source)(source).

World Markets

The Bank of England kept interest rates high (5.25%) but signaled potential cuts soon. Inflation forecasts are down, while economic growth is predicted to be slow. The Bank aims to bring inflation back to target (2%) but remains cautious due to global uncertainty. (BOE)
Brazil's central bank cut interest rates to 10.5% as expected. Worries about global issues and high inflation at home led to a cautious decrease. The bank aims to bring inflation closer to its target in the future, despite a strong economy and easing headline inflation. (BCB)

Currencies

The Euro jumped to a one-month low against the dollar (1.077) as investors bet on slower interest rate cuts by the European Central Bank compared to the Federal Reserve. The ECB might cut rates in June, while the Fed is on hold and unsure about September.

Commodities

Oil (WTI crude) prices climbed above $79 per barrel after stockpiles shrank, hinting at less supply. Refinery activity picked up and hopes of Fed rate cuts boosted the market. However, prices stayed near lows due to eased tensions in the Middle East and uncertainty surrounding OPEC+'s production plans.