In September 2024, the U.S. economy saw a significant increase in job additions, substantially surpassing expectations and contributing to a robust employment landscape as the unemployment rate declined, according to the U.S. Labor Department’s report issues Friday 4th October 2024. U.S. Non-farm payroll numbers rose by 254,000 in September 2024,Read More →
Chinese firms are reportedly intensifying their efforts to develop a competitive alternative to Nvidia’s AI chips, as part of Beijing’s ongoing initiative to reduce its reliance on U.S. technology. China faces several challenges that are impeding its technological progress, including U.S. export restrictions that limit domestic semiconductor production. The lackRead More →
In August 2024, U.S. inflation edged closer to the Federal Reserve’s target, potentially paving the way for future reductions in interest rates, according to a report from the U.S. Commerce Department released Friday 27th September 2024 The personal consumption expenditures price index (PCE), which is the Fed’s preferred gauge forRead More →
In September 2024, consumer sentiment plummeted, marking the most significant drop in over three years, driven by escalating concerns over employment and business conditions, according to a report by the Conference Board released on Tuesday 24th September 2024. The consumer confidence index reportedly fell to 98.7 from 105.6 in AugustRead More →
The Federal Open Market Committee (FOMC) has voted to reduce the interest rate by 0.50% after having maintained its benchmark rate within the range of 5.25% to 5.50% since July 2023 The previous rate was the highest seen for 23 years and remained unchanged even though the Fed’s favoured inflationRead More →
In August 2024, wholesale prices saw an increase that was roughly in line with expectations, marking the final inflation data point before the Federal Reserve’s anticipated interest rate cut due on 18th September 2024 The Bureau of Labor Statistics announced on Thursday 12th September 2024 that the producer price indexRead More →
Artificial Intelligence (AI) has become a pivotal battleground in the technological race between China and the United States. “AI is expected to become a crucial component of economic and military power in the near future,” Stanford University’s Artificial Intelligence Index Report 2023 stated. Both countries are significantly investing in AIRead More →
As anticipated in the U.S., prices rose in August 2024, while the annual inflation rate fell to its lowest point since February 2021, according to a Labor Department report on Wednesday 11th September 2024. This development likely now paves the way for a Federal Reserve interest rate reduction next weekRead More →
The U.S. government is targeting the heart of Google’s vast wealth – its highly profitable monopolising advertising technology business A trial scheduled to begin on Monday 9th September 2024 will scrutinise the Department of Justice’s (DoJ) claims that Alphabet, the parent company of Google, is unlawfully sustaining a monopoly inRead More →
The stock market is often seen as a barometer of economic health, but its relationship with the broader U.S. economy is more nuanced than it might appear. Although there are links between the two, they do not always correlate. The intricacies of this relationship and its implications for investors andRead More →
The Biden administration is reportedly implementing new export controls on essential technologies, such as quantum computing and semiconductor materials, in response to China’s progress in the global chip market These controls encompass quantum computers and their components, sophisticated chipmaking tools, semiconductor technologies, certain metal and metal alloy components and software,Read More →
Is the U.S. economy already weaker than the headline data suggests and should the U.S. Federal Reserve already be easing? In the U.S. recent data (Friday 30th August 2024) showed the personal consumption expenditures (PCE) price index, the Federal Reserve’s favored measure of inflation, ticked up 0.2% last month, asRead More →
On Thursday 29th August 2024, the U.S. AI Safety Institute announced a testing and evaluation agreement with OpenAI and Anthropic This agreement reportedly grants the institute access to significant new AI models from each company before and after their public release. Recently, several AI developers and researchers have voiced concernsRead More →
High Price-to-Earnings (P/E) ratio The P/E ratio of the market is a common measure of valuation. Currently, the P/E ratio is significantly higher than historical averages, indicating that stocks are priced much higher relative to their earnings. Rapid price increases without corresponding earnings growth When stock prices rise rapidly withoutRead More →
The Dow Jones Industrial Average (DJIA) reached a new record high on Monday 26th August 2024, closing at 41240. Investors have responded positively to the Federal Reserve’s recent indications that interest rate cuts are highly probable to commence in September 2024. Market dynamics and sentiment The rise of the DJIARead More →
Job growth in the US last year was weaker than previously believed, according to a statement from the Labor Department on Wednesday 21st August 2024. This revelation has intensified the ongoing debate regarding the health of the U.S. economy. The department’s updated figures indicate that there were approximately 818,000 fewerRead More →
No surprise here then as the Fed have been signalling a cut for some time now The Fed summary stated: “The vast majority” of participants at the July 30-31 meeting “observed that, if the data continued to come in about as expected, it would likely be appropriate to ease policyRead More →
Highs and lows of one volatile week in the U.S. stock market U.S. stocks climbed on Monday 19th August 2024, continuing the market’s rebound as investors prepared for the highly anticipated Federal Reserve symposium at Jackson Hole later in the week. The S&P 500 ended the day at 5608 TheRead More →
The U.S. and China recently signed an agreement to cooperate on financial stability. This agreement was part of a meeting of the U.S. – China Financial Working Group held in Shanghai. The discussions were reportedly described as professional, pragmatic, candid, and constructive. The agreement includes measures for both countries toRead More →
U.S. stocks surged on Thursday, buoyed by investor confidence bolstered by positive consumer and labour data, which alleviated fears of a recession. The Dow Jones Industrial Average soared 554 points to close at 40563 – one year chart The S&P 500 ended up 1.61% at 5,543.22, marking its sixth consecutiveRead More →
In July 2024, U.S. consumer spending exceeded expectations, and inflation pressures continued to ease, as reported by the U.S. Department of Commerce on Thursday 15th August 2024. Retail sales in the U.S. rose by 1% for the month, with advanced figures adjusted for seasonality but not for inflation. This surpassedRead More →
U.S. consumer prices (CPI) increased at the slowest rate in over three years last month, further supporting the argument for the Fed to begin reducing interest rates. According to the U.S. Labor Department, prices climbed 2.9% in the 12 months leading up to July 2024, marking the smallest yearly riseRead More →
Falling commodity prices can be a signal of economic trouble ahead When commodity prices drop, it often reflects a decrease in demand for raw materials, which can be a sign of slowing economic activity. For instance, the recent decline in copper prices is seen as a potential indicator of economic slowdown.Read More →
In July 2024, a principal indicator of U.S. wholesale inflation climbed less than anticipated, potentially paving the way for the Federal Reserve to begin reducing interest rates. The Producer Price Index (PPI), which is a gauge of wholesale inflation, saw a modest increase of 0.1% for the month of July,Read More →
The stock markets mix of toil and trouble is in the cauldron ready for a bear market in 2025, if not before. Why? These concerns are now all combining, and it will likely add-up to a bear market of around 25% in 2025 (this is my best guess). Remember –Read More →
Stocks rose on Thursday 8th August 2024 as the latest U.S. employment data bolstered investor confidence in the economy, following a significant market downturn earlier in the week. The S&P 500 increased by 2.3%, closing at 5319.31, marking its best day since November 2022. The Dow Jones Industrial Average jumpedRead More →