Wednesday's Markets Update (October 30, 2024)

30 Oct 2024 by rate3

On Wednesday, stocks closed lower as investors digested mixed corporate earnings and economic data. Tech stocks were uncertain, with Nvidia and AMD declining, while Alphabet rose. Slower GDP growth and a strong labor market tempered hopes for Fed rate cuts. Investors are awaiting earnings from Meta, Microsoft, Apple, and Amazon. In the EU, inflation is accelerating as economic growth continues to slow down, exacerbating stagflationary expectations. BTC has corrected slightly but is still holding above $72K, while ETH sits at $2.6K.

Details

Personal consumption expenditure increased 1.5% in Q3 2024, the slowest pace since Q2 2020. This was lower than expected, indicating a slowdown in consumer spending. 1Y trend: "Down" (BEA)
GDP grew 2.8% in Q3 2024, slower than Q2. Consumer spending increased, driven by goods and services. Government spending and net trade also contributed positively. However, inventory investment and fixed investment slowed. 1Y trend: "Side" (BEA)
Private sector added 233K jobs in October, far exceeding expectations. Service sector led job growth, while manufacturing shed jobs. Annual wage growth for job-stayers and job-changers continued to slow. 1Y trend: "Side" ADP
30-year fixed mortgage rates rose to 6.73% in the week ending October 25, the highest level in three months. This increase reflects investor expectations of a slower pace of Fed rate cuts. Jumbo mortgage rates also rose, while FHA mortgage rates declined slightly. 1Y trend: "Side" (MBA)

Crypto

A recent poll by Paradigm suggests that 5% of voters are single-issue crypto voters, potentially influencing close elections. This group includes a significant portion of young, male, African American, and Hispanic voters. (source)

World Markets

The Eurozone economy grew 0.9% YoY in Q3 2024, exceeding expectations and marking the strongest growth in three quarters. 1Y trend: "Down" (ES)
Eurozone economic sentiment weakened in October 2024, as industrial confidence declined due to falling production and order books. Consumer inflation expectations rose, potentially hindering the ECB's efforts to curb inflation. However, the services sector showed strength. 1Y trend: "Side" (EU)