In today’s Market Mornings report, we provide a comprehensive overview of recent developments across various asset classes, including equities, commodities, bonds, and economic events. This summary highlights the key movements and data releases that have influenced market sentiment and pricing as of June 13, 2024.
Table of Contents
Summary
- Equities: The S&P 500 and Nasdaq rose by 0.3% and 0.6%, respectively, while the Dow Jones fell by 120 points.
- Commodities: WTI crude futures rose above $78.5 per barrel, gold dropped to around $2,310 per ounce, and silver fell to $29 per ounce.
- Bonds: The yield on the US 10-year Treasury note decreased to below 4.27%.
- Currencies: The Euro rose past $1.08, and the British pound remained above $1.28.
- Economic Events: Inflationary pressures eased, and unemployment claims increased.
Economic Events
Recent economic data indicated easing inflationary pressures, which has rekindled the possibility of multiple rate cuts this year. The Federal Reserve kept interest rates unchanged and lowered its rate cut expectations for 2024 from three to one. Producer Price Index (PPI) data showed a decline, reinforcing the argument for rate cuts to support economic growth.
Equities
The S&P 500 and Nasdaq experienced gains, rising by 0.3% and 0.6%, respectively, as investors processed recent data and the Federal Reserve’s statement. However, the Dow Jones fell by approximately 120 points. In corporate news, Broadcom’s shares surged by 13% due to optimistic revenue forecasts for AI chips and a stock split announcement. Nvidia’s shares also increased by 2.1%. Tesla’s shares rose by 5.8% following shareholder approval of Elon Musk’s pay package and plans to relocate to Texas. Conversely, Virgin Galactic’s shares dropped by 12% after announcing a reverse stock split.
Commodities
WTI Crude Oil
WTI crude futures climbed above $78.5 per barrel, building on a 0.8% gain from the previous day. The expectation of interest rate cuts this year bolstered prices, despite a rise in US crude stockpiles. The EIA reported a 3.73 million barrel increase in inventories, contrary to the expected decrease.
Gold
Gold prices declined to around $2,310 per ounce as investors assessed the Federal Reserve’s updated interest rate projections. The Fed indicated only one rate cut this year, despite soft inflation data.
Silver
Silver prices fell to $29 per ounce, hitting a one-month low. The decline was driven by the Federal Reserve’s hawkish stance, despite weaker-than-expected inflation data and recent dovish moves from other major central banks.
Bond
US10Y
The yield on the US 10-year Treasury note fell below 4.27%, reaching the lowest level since April 1st. This decline followed data showing eased inflationary pressures, supporting the case for potential rate cuts.
Currency Markets
Euro
The Euro surged past $1.08, benefiting from a weakened US dollar after inflation figures came in below forecasts. The Federal Reserve’s steady interest rate policy and limited rate cut expectations also influenced the currency’s rise.
British Pound
The British pound remained above $1.28, despite paring some gains. The currency capitalized on the dollar’s significant fall due to slower-than-expected US inflation. The Bank of England is expected to keep rates unchanged, with potential rate cuts anticipated later this year.
Disclaimer: The views and opinions expressed in the blog posts on this website are those of the respective authors and do not necessarily reflect the official policy or position of Meta Trading Club Inc. The content provided in these blog posts is for informational purposes only and should not be considered as financial advice. Readers are encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions. Meta Trading Club Inc shall not be held liable for any losses or damages arising from the use of information presented in the blog posts.
