Afloat
The S&P 500 and Nasdaq have shown resilience, rising by 1.45% and 1.4% respectively over the past week. This uptick is supported by the recent bullish sentiment following Powell's dovish pivot, which has buoyed investor confidence. The S&P 500's 3.21% monthly gain and 6.98% three-month gain underscore a robust recovery, despite mixed economic signals and the anticipation of the Fed's symposium in Jackson Hole. The Nasdaq's 3% monthly and 5.66% three-month gains reflect strong performance in the tech sector, bolstered by significant market moves such as Nvidia's $765 billion market cap increase over eight trading days.
Currency Movements: The USD/JPY pair experienced a notable decline of 3.25% over the past week, continuing its downward trend with a 6.07% drop over the month and 8.4% over three months. This depreciation aligns with the broader market sentiment as the Federal Reserve's dovish stance, highlighted by Jerome Powell's recent comments on impending rate cuts, has weakened the dollar. Conversely, the EUR/USD and GBP/USD pairs have appreciated by 1.74% and 2.43% respectively over the week, reflecting the relative strength of the Euro and Pound amidst a mixed economic outlook in the Eurozone and the UK.
Developed and Emerging Markets: Developed markets have risen by 3.01% over the week, with a 4.16% monthly and 6.04% three-month gain, indicating steady growth. Emerging markets, however, have shown more modest gains of 0.76% over the week and 0.39% over the month, reflecting cautious investor sentiment amidst geopolitical tensions and economic uncertainties, particularly in China.
Commodities: Gold has remained relatively stable, with a slight 0.01% increase over the week and a 5.16% monthly gain, driven by its safe-haven appeal amidst economic uncertainties and record-high prices of $2,500 an ounce. Silver has seen a more significant 2.91% weekly gain and a 6.75% monthly gain, reflecting increased investor interest. In contrast, oil prices have declined, with WTI and Brent down by 1.01% and 1.2% respectively over the week, influenced by China's reduced oil demand growth due to its shift towards electric vehicles and natural gas.
Cryptocurrencies: Cryptocurrencies have shown remarkable performance, with Bitcoin surging by 8.83% and Ethereum by 6.59% over the week. Ripple and Solana have also posted significant gains of 9.2% and 10.29% respectively. This surge is partly driven by a rebound from the recent bouts of volatility.
Bonds and Spreads: Global bonds have seen a modest 0.44% increase over the week, with a 2.27% monthly gain, reflecting steady demand for fixed-income securities. US 10Y T-bond yields have remained relatively flat, with a slight 0.03% decline over the week, indicating stable investor demand amidst low mortgage rates and a cooling labor market.
"Time is your friend; impulse is your enemy."-Jack Bogle