Economy
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Markets are settling into holiday mode, with stock futures slightly down on the last full trading day before Christmas. Here’s where things stand today: * Nasdaq-100: +0.37% * S&P 500: +0.04% (flat) * Dow Jones: -0.22% On Friday, the S&P 500 rose 1.1%, recovering
Quantum computing stocks are taking off in 2024. Is this the start of something big? Let’s take a closer look Google’s Chip Changes the Game Google’s new Willow chip, a 105-qubit processor, hit a big milestone: * Fixed Errors: It solved a 30-year problem by cutting down error
Government surveys that track the economy are failing. Budgets are shrinking, people are skipping surveys, and economic data we rely on is becoming less trustworthy. This is a big deal—because when the numbers are wrong, decisions that affect markets, businesses, and everyday life go wrong, too. Here’s what’
The S&P 500 Value Index just dropped 3.7%, marking its longest losing streak on record. Meanwhile, Bitcoin smashed past the $100,000 mark, and the Nasdaq climbed to 20,000. To me, it seems that value stocks have been left in the dust, and investors chasing bigger
Almost $10 billion has poured into Bitcoin ETFs since the US election, pushing Bitcoin past the $100,000 mark for the first time. The momentum is crazy, with Bitcoin posting its best winning streak since 2021. With investors pouring in, knowing the risks are more important than ever. Bitcoin’s
Well, if anyone was hoping for an inflation miracle in May, keep dreaming. The Fed’s favorite inflation gauge hit 2.6% in May, right on target. It’s a step down from April’s 2.8%, hinting at possible rate cuts sooner, but let’s not get too excited just yet.
Fed Chair Jerome Powell isn’t throwing in the towel on inflation just yet. He’s clear that core inflation might not hit that sweet 2% spot until 2025. That means more rate hikes could be on the menu. Historically, the Fed juggles rate changes and forward guidance to keep things in check.
Treasury Yields Dropped. Treasury yields took a hit after the inflation data dropped, reacting to the Fed’s potential moves. The market’s already factoring in prolonged high rates, which could mean some volatility ahead.
But there’s also a glimmer of hope. If the Fed pauses rate hikes, we might see a rally in equities, similar to earlier this year. So, keep an eye on those interest rate decisions—they’re crucial.
Impacts from Inflation. Inflation hits sectors differently. In the US, housing has been a big one. Rent costs have been a headache for the Fed, but there’s a silver lining.
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Zillow’s Observed Rent Index (ZORI), that measures rent growth, slowed last month, suggesting housing inflation could ease, helping broader disinflation.
Consumer Spending Shifts. High inflation also affects consumer spending. People tighten their belts and focus on essentials instead of luxuries. This hits different sectors in several ways: luxury goods and non-essential services usually take the biggest hit. Specifically, the consumer-discretionary industry feels the burn; which includes retailers, airlines, and entertainment.
Retail sales data also tells us an interesting story. In May 2024, U.S. retail and food services sales were up slightly by 0.1% from the previous month, totaling $703.1 billion. However, sales in discretionary categories have seen slower growth.
It isn't a temporary trend; it's a larger shift as consumers adapt to higher prices and uncertainty.