Stronger than expected manufacturing and services PMI figures out of the United States dealt a heavy blow to rate cut optimism last week, which in turn put pressure on stock markets. Dismal financial prospects for Boeing (BA) also weighed on the Dow Jones Industrial Average, culminating in a 2.33% loss on the week. The strong performance in tech stocks was enough to allow the S&P 500 to earn itself a near flat weekly close and the Nasdaq Composite to finish 1.41% higher. As usual, the main driver behind the move in tech stocks was Nvidia (NVDA), which gained over 15% on the week thanks to a blockbuster quarterly report. The chipmaker’s share price is now up 115% since the start of the year.
In the end, the prospect of higher rates for longer did not notably embolden the Dollar, the DXY gaining just a quarter of a percent over the week. The shift in monetary expectations did crush precious metal prices however, with gold falling 3.34% over the week despite setting a new record high on Monday.
Some interesting developments in crypto recently as the U.S. Securities and Exchange Commission approved not one but eight Ethereum ETFs last Thursday. The announcement came as a surprise and has prompted more than a few analysts to suggest that the decision was politically motivated. The announcement overshadowed another significant development last week: the Financial Conduct Authority in the UK approved the listing of Bitcoin and Ethereum ETPs on the London Stock Exchange, effective tomorrow. ETHUSD finished the week 25% higher on the news.
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