Monday's Markets Update (September 16, 2024)

17 Sep 2024 by rate3

On Monday, stocks traded mixed, with investors awaiting the Fed's interest rate decision on Wednesday. The Dow hit a new ATH, while expectations for a larger rate cut increased, and the energy and financial sectors outperformed as chipmaker stocks fell. Internationally, gold reached a new ATH again, while silver jumped to $31. Meanwhile, BTC and ETH returned to their bearish ranges of $57K and $2.3K after a short-lived attempt at recovery initiated by MicroStrategy's $1B buy-in.

Details

The NY Empire State Manufacturing Index unexpectedly rose in September to 11.5 - the highest in 2 years - indicating a growth in business activity for the first time in nearly a year. New orders and shipments increased, while labor market conditions remained soft. Firms' optimism about future conditions improved, but capital spending declined. 1Y trend: "Side" (NYFed)

Crypto

High-net-worth families in North America, Asia Pacific, and Europe are expected to significantly increase their wealth over the next decade by growing their fortunes from $5.5 trillion today to $9.5 trillion in 2030. North American families are projected to experience the largest growth, with their wealth increasing by 258% from $1.12 trillion in 2019 to $4 trillion in 2030. Asia Pacific families are expected to see their wealth grow by 208%, from $650 billion to $2 trillion. Meanwhile, European families are projected to increase their wealth by 157%, from $1.1 trillion to $2.8 trillion. Ultra-high-net-worth individuals are typically defined as those with investable assets of at least $30 million. (source)

World Markets

Hourly labor costs in the Euro Area rose by 4.7% in Q2 2024, down from 5% in Q1. Wage growth slowed, while non-wage costs increased. Construction, industry, and services saw significant labor cost increases. Germany, France, and Italy experienced moderate rises, while Bulgaria, Croatia, and Romania recorded substantial increases. 1Y trend: "Up" (EU)
Turkish motor vehicle production fell sharply in August 2024, down 26.7% from the previous year. This decline marks the lowest production level since August 1980. Overall, car production in Turkey has averaged 51,550 units per month since 1974, with a record high of 163,460 units in November 2017. 1Y trend: "Down" (OSD)
Peru's economy grew significantly (+4.47%) in July YoY, driven by strong manufacturing, mining, and construction sectors. Other sectors like utilities, fishing, and telecommunications also expanded. However, agriculture declined due to adverse weather conditions and early harvesting. Overall, the economy grew by 2.78% in the first seven months of 2024. (PE)

Commodities

Gold prices reached a new record high (2590), driven by a weaker dollar, lower bond yields, and growing expectations for a significant US interest rate cut. The Fed is likely to cut rates by 50 basis points, according to market expectations. This follows recent economic data showing a softening labor market and declining inflation. The ECB's rate cut also supported gold prices. 1Y trend: "Up"
Silver prices surged to a two-month high (31), driven by rising expectations of a more aggressive Fed rate cut. Market sentiment shifted towards a larger 50 basis point cut, influenced by signs of a slowing labor market and weaker-than-expected Chinese economic data. 1Y trend: "Up"