Tuesday's Markets Update (June 18, 2024)

18 Jun 2024 by rate3

On Tuesday, the S&P nearly hit a new record high, boosted by Nvidia's surge past Microsoft to become the world's most valuable company. The broader market is mixed, with investors watching economic data and Fed comments for clues about future interest rates. Internationally, EU inflation rose. BTC (65K) and ETH (3.4K) traded lower, with the rest of major coins falling more than 4%.

Details

Retail sales grew 2.3% in May 2024 compared to last year, but the monthly growth was slow at 0.1%. This comes after a downward revision to April's numbers. Retail sales grew slowly in May (0.1%) after a revised April drop. This missed forecasts and suggests cautious consumers. Sales rose in sporting goods, clothing and some stores, but fell at gas stations, restaurants and furniture stores. Overall growth was weak, even excluding gasoline. 1Y trend: "Side"
Industrial production surged in May, exceeding expectations by growing 0.9% after flat growth in April. Manufacturing, a major sector, also rose 0.9%. 1Y trend: "Side"

Crypto

Fewer short-term investors are jumping into crypto (35% of the realized cap, compared to over 70% during previous market peaks), which could slow down the market's growth. An expert points out that short-term ownership of Bitcoin is lower than past highs, suggesting more experienced investors are holding on, which might create a steadier market. (source)

World Markets

Eurozone inflation rose to 2.6% in May, driven by services costs. Energy prices also rebounded, while food and goods saw slower growth. This aligns with forecasts and prompted the ECB to adjust its inflation expectations upwards for the next three years. 1Y trend: "Down"
Eurozone economic sentiment reached a 29-month high in June, fueled by optimism about lower inflation and interest rate cuts by the ECB. This positive outlook comes after a slowdown in the European economy during 2022 and 2023. 1Y trend: "Down"

Commodities

Natural gas prices jumped to 2.9 after a cold streak, driven by an expected heat wave in the Northeast. This surge in demand for cooling could push prices even higher, especially since power plants rely heavily on natural gas. However, some areas in Texas might see temporary relief from a tropical cyclone. 1Y trend: "Side"
Price of US cotton futures falls below 70 cents a pound for the first time since 2020. Strong dollar, good weather boosting cotton yields, and a global production increase are driving the price down. 1Y trend: "Side"