Tuesday's Markets Update (June 25, 2024)

25 Jun 2024 by rate3

On Tuesday, stock market mixed after tech sell-off. S&P and Nasdaq rose, while Dow Jones fell. Tech and communication services led gains, while materials and industrials lagged. Internationally, EU stocks stabilized at their monthly levels after two weeks of volatility. Cryptocurrencies are up, with BTC leading after a rebound of over 2%.

Details

A Chicago Fed index rose to a 3-month high in May, driven by stronger production. Despite some mixed signals, the overall trend suggests a slight improvement in economic growth. 1Y trend: "Side" (CFed)
Home prices rose 7.2% YoY in April, but slightly slower than March. San Diego led the gain, while Portland lagged. The national average also rose, hitting a new high despite a slowdown. This mirrors 2023's strong start before a summer cool-down. The market is currently at an all-time high, raising questions about its ability to maintain momentum. 1Y trend: "Up" (SP)
Manufacturing activity in the Fifth District (Richmond) contracted sharply in June, missing expectations. New orders and shipments fell significantly. Despite lower backlogs, companies cut jobs due to rising wages. However, expectations for future orders and shipments remain positive. 1Y trend: "Up" (RFed)

Crypto

A major Japanese survey shows that 54% of institutional investors plan to buy crypto in the next 3 years. This is driven by inflation concerns and potential relaxed regulations on crypto investments, though some remain cautious. Bitcoin and Ethereum are seen as the most promising options. (source)
UK young adults (34%) see crypto as a major voting issue in upcoming elections. A survey by Zumo found they're more interested in crypto than older adults, with many (38% of 18-24 year olds) already invested and seeing it as a long-term financial opportunity. (source)
Private blockchains (f.e. JPMorgan 's Onyx), used mainly by big banks, handle over $1.5 trillion monthly of secure loan deals (repos, where cash is borrowed against securities, often, Treasuries) in permission-based, under-the-radar repo ledgers. This "under-the-radar" application is proving to be one of blockchain's biggest successes. (source)

World Markets

European stocks fell. Airbus's profit target cut caused a 10% drop in its share price. However, healthcare stocks rose sharply, with Novo Nordisk and Zealand Pharma surging on positive drug news. 1Y trend: "Up"
Spain's economy grew faster than expected in Q1, reaching 2.5% YoY. This is an improvement over the previous quarter's 2.1% increase. Domestic factors drove most of the growth, with some contribution from foreign demand. 1Y trend: "Down" (Ine)