Tuesday's Markets Update (May 28, 2024)

28 May 2024 by rate3

On Tuesday, the stock market was mixed. The Dow fell on hawkish comments from the Fed. The S&P remained flat, while the Nasdaq reached a new high due to strong gains in chip companies. On the world’s markets, silver surged again, nearing an 11-year high. BTC and ETH are still holding within their week-old zones of 68-70K and 3.7-3.8K, respectively. The rest of the crypto market is in the red, with Bitcoin Cash, Polkadot, and Avalanche down by up to 4%.

Details

Home prices jumped 7.4% YoY in March, the highest since October 2022. San Diego, New York and Cleveland saw the biggest gains, while Portland saw the smallest. Monthly gains were also strong, up 1.6% in March, the most in nearly a year. 1Y trend: "Up" (SP)
Texas manufacturing activity weakened in May according to the Dallas Fed. Their index hit a 4-month low, suggesting a decline in production, shipments, and capacity utilization. Despite some positive signs for new orders, employment also dipped slightly. 1Y Trend: "Side" (DFed)
In April, the M2 money supply increased by $25.8B to $20.87T, the biggest jump in 13 months. Overall, M2 money supply in the US has been steadily rising, reaching a record high of $21.7T in April 2022 (a record low of 286.60B in Jan 1959). 1Y trend: "Side" (Fed)

Crypto

Since the start of 2024 US BTC miners had already spent $2.7B on electricity, enough to power nearly 2 million homes for a year or to charge every electric vehicle 87.52 times. (source)
A new Grayscale survey shows 41% of respondents are paying attention to crypto up from 34% in November 2023. 77% voters want politicians to understand crypto. (source)

World Markets

Brazil's producer prices dropped 3.08% in April compared to April 2023. Historically, these prices have fluctuated widely, averaging 200.07% change with a high of 6719.66% (April 1990) and a low of -14.02% (July 2023). 1Y trend:"Up"(Ibge)

Currencies

The dollar recovered after Fed hawkish comments promising to hold off on cutting rates until there is notable improvements with inflation. Investors are waiting for inflation data this week now expecting the first rate hike in December. 1Y trend:"Up"

Commodities

Silver prices are soaring, nearing the 11-year high of $32 touched on May 21st. This surge is due to a combination of factors: lower interest rates globally, strong industrial demand for silver (especially in solar panels), and continued inflation. Despite robust growth, investors still expect the Fed to cut rates, further boosting silver's appeal. 1Y trend: "Up"
Platinum prices surged near a recent high (1100) due to a mix of factors. Favorable economic conditions boosted investment in precious metals, while industrial demand stayed strong. Despite inflation concerns delaying Fed rate cuts, expectations of looser policies from other central banks lowered the cost of holding platinum, contributing to a price increase. Interestingly, sanctions on Chinese electric vehicles indirectly benefited platinum usage in traditional gasoline cars. 1Y trend: "Up"