Wednesday's Markets Update (July 24, 2024)

24 Jul 2024 by rate3

On Wednesday, tech stocks plunged, dragging down major indexes, as disappointing earnings from tech giants dashed AI-fueled optimism. Alphabet, Tesla, and Visa led the decline, with concerns over spending, revenue, and economic conditions. Meanwhile, manufacturing activity contracted sharply. Internationally, the Eurozone economy stalled while the Indian economy stayed strong, according to the latest PMI report. BTC and ETH went down, with traders stressed by the stock market crash.

Details

Manufacturing contracted sharply in July. New orders, production, and inventories fell, while employment growth slowed. Input costs surged, but selling prices rose at the slowest pace in a year. Despite business sentiment improving slightly, overall conditions in the sector deteriorated significantly. 1Y trend: "Up" (PMI)
New home sales dropped in June, marking the lowest point in seven months. High prices and mortgage rates continue to deter buyers. Sales declined in the Northeast and Midwest but increased in the South and West. While home prices and inventory levels have eased compared to last year, the market remains sluggish. 1Y trend: "Down" (Census)

Crypto

According to unconfirmed reports, senator Cynthia Lummis plans to announce new bill, which would require the Fed to hold some BTC as a strategic reserve asset. (source)

World Markets

Eurozone economy stalled in July based on Eurozone Composite PMI. Manufacturing contracted, services slowed, and new orders fell. Business confidence dropped, leading to hiring freezes. Inflation rose, but price hikes slowed due to weak demand. Germany and France also reported economic declines. 1Y trend: "Down" (PMI)
India's economy continued its strong growth in July, with both manufacturing and services expanding rapidly. New orders and exports surged, driving increased production and hiring. However, rising input costs are fueling inflation, forcing businesses to raise prices. (PMI)