Tuesday's Markets Update (July 30, 2024)

31 Jul 2024 by rate3

On Tuesday, stocks tumbled, led by a sharp decline in chipmakers, erasing early gains. Investors are cautious ahead of the Fed's decision tomorrow. The Nasdaq and S&P suffered significant losses, while the Dow managed to hold its ground. Concerns over the sustainability of the AI boom and disappointing earnings from tech and healthcare giants contributed to the market's weakness. Internationally, the German economy shrank unexpectedly, while steel prices reached a six-year low due to China's manufacturing weakness. BTC and ETH stayed in the red, testing their support levels at 65K and 3.2K, respectively.

Details

Job openings remained steady in June despite slight declines in manufacturing and government. While hires and separations were little changed, the number of workers quitting jobs hit a new low since 2020. Overall, the job market shows signs of cooling after a prolonged period of tightness. 1Y trend: "Down" (BLS)
Home prices continue to rise (+6.8% YoY), according to the S&P CoreLogic Case-Shiller index. While growth has slowed from peak levels, prices are still increasing at a faster pace than seen in recent years. New York, San Diego, and Las Vegas led gains, while Portland saw the smallest increase. 1Y trend: "Up" (SP)
Texas' service sector remained on a negative territory while showing modest improvement in July, with revenue rising and business outlook more optimistic. However, employment declined and remains a concern. While input costs eased, companies reported stable selling prices. Overall, the sector is slowly recovering but still faces challenges. 1Y trend: "Up" (Dallas)

Crypto

The BTC mining industry is set to reach $20B in the next five years. US companies are challenging Chinese dominance with advanced chip technology. Block and Auradine are leading the charge, investing heavily in new mining equipment. Growing network activity is expected to boost hardware demand, fueling industry expansion. (source)

World Markets

Germany's economy unexpectedly shrank 0.1% in Q2, continuing a year-long slump. Investment plummeted due to high interest rates, and industrial output remains weak. While a slight recovery is predicted for 2024, growth will be slow and limited due to ongoing economic challenges. 1Y trend: "Side" (Dstat)
The Eurozone economy grew faster than expected in the second quarter, expanding 0.6% compared to the same period last year. This marks the strongest growth in five quarters. 1Y trend: "Down" (EU)
Eurozone economic sentiment dipped slightly in July but remains below February's peak. This aligns with the ECB's loosening of monetary policy. Both industry and services sectors reported declining confidence, though consumer pessimism eased. 1Y trend: "Down" (EU)

Commodities

Steel rebar prices plummeted to a six-year low amid oversupply and weak demand in China. New quality standards and a struggling property market have exacerbated the crisis. Excess supply and deflationary pressures limit government intervention, fueling concerns over economic slowdown. 1Y trend: "Down"