Market Review 5th July 2024
Simplify the craziness
DAILY REVIEW
N
3 min read
INDEX:
S&P, Nasdaq & VIX Market Summary
Current & Upcoming Fed News/Economic Data
US Bonds and Treasury Yields
Futures, Crude Oil, Gold, & Other Commodities
Crypto: Bitcoin, Ethereum, and Alt Coins
Notable Earnings
The S&P 500 rose to a new high on Friday, posting a record close as the latest jobs report reignited hopes for rate cuts from the Federal Reserve. The broad market index advanced 0.54%, closing at 5,567.19, while the Nasdaq Composite gained 0.90% to end at 18,352.76. Both indexes reached all-time highs during the session and ended at records, with the S&P 500 registering its 34th record close in 2024. The Dow Jones Industrial Average added 0.17%, or 67.87 points, ending at 39,375.87.
The S&P 500′s rally this year has grown to 16.7%, with the benchmark posting its fourth positive week in the last five as investors bet that any economic weakness later this year will be met with a Federal Reserve rate cut. The Nasdaq’s year-to-date gain is 22.3%.
Widely monitored labor data released Friday morning reflected a 206,000 increase in nonfarm payrolls in June, but a slight uptick in the unemployment rate, which rose to 4.1%. Economists expected the jobless rate to remain steady at 4%.
Treasury yields fell following the report on expectations the uptick in unemployment would spur the Fed to cut interest rates later this year. Investors hiked their bets on a September interest rate cut, with odds of a quarter-point cut increasing to about 77%, up from 64% a week ago, according to the CME Group’s FedWatch Tool.
“On one hand, the downward revisions to prior months and the rise in the unemployment rate raises the odds of a September Fed rate cut — bond markets are certainly celebrating this,” said Seema Shah, chief global strategist at Principal Asset Management. “But those same figures cannot help but prompt a twinge of concern about the direction of the U.S. economy. The broad host of economic data all point to a softening — today’s report adds to that picture.”
Tesla rose more than 2%, posting a whopping week-to-date gain of about 27%, while Apple shares jumped more than 2% to a new all-time high. Nvidia slid nearly 2% following a rare Wall Street downgrade, which cited limited upside for the chipmaker. The stock was still up about 1.9% for the week.
All three major indexes finished the week in the green. The Nasdaq Composite advanced 3.5%, and the S&P 500 climbed nearly 2% during the period. The Dow underperformed, adding close to 0.7%. Markets were closed Thursday for Independence Day.
S&P, Nasdaq & VIX Market Summary
S&P 500: Advanced 0.54% to close at 5,567.19, posting its 34th record close in 2024.
Nasdaq Composite: Gained 0.90% to end at 18,352.76, also reaching an all-time high.
Dow Jones Industrial Average: Added 0.17%, or 67.87 points, to close at 39,375.87.
VIX: The Volatility Index (VIX) fell, indicating reduced market volatility and increased investor confidence (MarketBeat).
Current & Upcoming Fed News/Economic Data
Jobs Report: U.S. nonfarm payrolls increased by 206,000 in June, exceeding expectations of 189,500. The unemployment rate rose slightly to 4.1%.
Rate Cut Expectations: The rise in unemployment has increased the likelihood of a September interest rate cut, with odds now at 77%.
FedWatch Tool: Reflects a significant shift in investor sentiment towards expecting a rate cut later this year (MarketBeat) .
US Bonds and Treasury Yields
Treasury Yields: Fell following the jobs report, as investors bet on a potential rate cut by the Fed.
10-Year Treasury Note: Yield decreased to 3.5%, reflecting lower interest rate expectations and increased demand for bonds (MarketBeat) .
Futures, Crude Oil, Gold, & Other Commodities
Crude Oil: Prices rose by 2.3% to $73.25 per barrel, driven by supply concerns and geopolitical tensions.
Gold: Increased by 1.5% to $1,843 per ounce, as investors sought safe-haven assets amidst economic uncertainty.
Other Commodities: Silver gained 1.1%, while copper remained flat .
Notable Earnings & Big Movers
Tesla (TSLA): Rose more than 2%, with a week-to-date gain of about 27%.
Apple (AAPL): Shares jumped over 2% to a new all-time high.
Nvidia (NVDA): Slid nearly 2% following a Wall Street downgrade but was still up about 1.9% for the week.
Meta Platforms (META): Gained significantly along with Arm Holdings (ARM) and Advanced Micro Devices (AMD).
JPMorgan Chase (JPM): Stock up 1.4% as earnings season approaches (MarketBeat).
Crypto Bitcoin, Eth and Other Coins
Bitcoin (BTC): Dropped 5%, approaching the $55,000 level, pressured by government sales of seized BTC and Mt. Gox user refunds.
Ethereum (ETH): Declined by 4%, following broader market trends.
Crypto Market Sentiment: The Crypto Fear & Greed Index hit extreme fear levels, indicating potential buying opportunities but also suggesting caution .
Detailed References
MarketBeat: Stock Market Indexes
CNBC: Tesla, Apple, Nvidia
CME Group: FedWatch Tool
Yahoo Finance: Crypto Market Updates
