Market overview
Equity
On April 4th (Thursday), the American market underwent a shift from optimism to pessimism. The three major indices opened with gains, but by 2 pm Eastern Time, all of them began to fall. At the close, the S&P index stood at 5,147.21 (a decrease of 1.2%), the Dow 30 index was at 38,596.98 (a decrease of 1.4%), and the Nasdaq index was at 16,049.08 (a decrease of 1.4%). The sudden drop was attributed to comments from the Federal Reserve suggesting that an interest rate cut might not occur this year if inflation progress stalls. Additionally, the March nonfarm payrolls count, which is expected to show job growth of 200,000 according to Dow Jones consensus (a decrease from February’s growth of 275,000), will be released on April 5th (Friday). This data is one of the factors that the Fed will consider when deciding on the interest rate.
Tesla (Nasdaq: TSLA) released its Q1 2024 production and deliveries report on April 2nd (Tuesday). During Q1 2024, Tesla produced a total of 433,371 vehicles (slightly higher than Wall Street’s consensus delivery data of 431,000) and delivered 386,810 vehicles, showing an 8.5% year-over-year decline. The current closing price of Tesla stock is $171.11, reflecting a $6.30 decrease over the past 5 days. Other equities that saw significant movement include Intel, which closed at $39.73 (a fall of 9.29% over the past 5 days).
Commodity
Over the past 60 years, the price of gold has seen a significant rise. As of April 5th, 2024, at 02:37 am CET, the price of gold reached an all-time high of $2284.8 per ounce. This surge is likely due to comments from Powell, who dampened expectations of a potential interest rate cut in 2024. The price of gold has risen from $1800 per ounce in November. However, according to Singaporean Bank OCBC, there is still room for growth due to geopolitical risks and demand from Asia.
As of April 5th, 2024, at 02:47 am CET, the price of WTI crude oil is $86.96, up from $83.10 on Monday. This increase is attributed to escalating geopolitical tensions, particularly in the Middle East, and speculation about a decline in Mexican oil supply. Another contributing factor is the optimistic PMI index from the U.S and China, indicating increasing demand for oil in the manufacturing and industrial sectors.
Crypto
The price of Bitcoin has been fluctuating over the past few weeks. As of April 5th, 2024, at 02:55 am CET, Bitcoin is priced at $68,400, marking a 5% decrease over the past week and a significant decrease over the past 5 years. On April 2nd (Tuesday), the price of Bitcoin fell by 4.76%, contrasting with the rise in treasury yield, as did Coinbase (NASDAQ: COIN). However, these losses were recouped on April 4th, ironically following a subdued comment from the Fed. As of April 5th, 2024, at 03:03 am CET, the price of Ethereum (ETH) stands at $3,330.91. The most significant upcoming event for crypto investors is the Bitcoin halving, scheduled for April 19, 2024. This event will result in a reduction in the reward given to miners for each block. Historically, such halvings have led to a boost in the price of Bitcoin.
Flow Traders Investment Competition
We have got a new leader in the Flow Traders Investment Competition! After weeks Floryn Traders lost the first position to Negotium Novum, who had a great week although the markets were sloping downwards. Furthermore, Zilvervloot Investeerders is back in the competitions' top 10 after a week where their total return rose to 6.36% highlighting their extremely low volatility! However, it wasn't all smooth sailing for everyone. Primus faced a significant setback, plummeting 21 places due to a notable decline in return. What will happen this week?
