Friday's Markets Update (June 21, 2024)

21 Jun 2024 by rate3

On Friday, major indexes barely budged, with tech stocks like Nvidia and Apple dipping, but consumer staples like Amazon rising. Data showed improving business conditions, which confused investors who had seen a weak economy earlier in the week. In global markets, the dollar surged as business growth in the Eurozone slowed down. BTC continued its drop, hitting 63.5K, with ETH settling at 3.5K. Consequently, the crypto market was in the red, with the largest market cap coins sliding by about 2%.

Details

Business activity hit a 16-month high in June, driven by a surge in services. Manufacturing grew too, but at a slower pace. Companies are hiring again due to rising demand and optimism, and inflation pressures seem to be easing. 1Y trend: "Up" (PMI)
Home sales dipped slightly in May, hitting a 4-month low. This comes despite record high home prices. Rising inventory suggests a shift in the market, with experts expecting more sales and potentially slower price growth soon. (NAR)

Crypto

ChatGPT-4 predicts ETH's price could hit $9K by mid-2025, depending on factors like new regulations and institutional investment. A more likely range is $4.5K to $6K, with a chance of staying around $3K. (source)

World Markets

Business growth in the Eurozone slowed down in June, but remained positive for the fourth month. Services held steady while manufacturing dipped. New orders fell, and hiring slowed. Inflation for materials used in production eased, allowing companies to raise prices at a slower pace. 1Y trend: "Down" (PMI)

Currencies

The dollar hit a seven-week high as business activity increased. This could delay the Fed's rate cuts compared to other central banks that are already easing. 1Y trend: "Up"

Commodities

Oil prices dipped slightly to $80.73 per barrel due to a strong dollar, despite positive signs like rising demand and lower stockpiles. 1Y trend: "Up"

On Week 12, investors will focus on prices, spending and housing data, with Fed speakers eyed. Globally, interest rates and inflation are key, along with consumer confidence in major economies.