US Capital Markets Review 5/11/18
The US capital markets had a strong week, with each of the major indicies (S&P 500, Nasdaq and Dow) each up around 2.5%. The Nasdaq is now up over 7% YTD, while the Dow has lagged at up 0.5%.
In general, commodities were mostly flat, but Oil was up another 1.2% for the week, putting the gain for the year over 17%. The jump was attributed to the US pulling out of the Iran nuclear deal and oil closed at $70.59 a barrel:
The dollar index was slightly down for the week after a strong last few weeks. As well.
In economic news, inflation numbers came out for the consumer price index, which showed lower than expected inflation at just over 2%. Consumer staples and consumer discretionary industry stocks lagged during the week accordingly, posting weekly numbers of -0.5% and +0.8%, respectively. Technology was an out performer again this week, and the industry stocks are up almost 11% for the year.
The big political news this week was the announcement and decision by President Trump to pull out of the Iran nuclear deal, which was a joint effort to reduce and restrict Iran's nuclear capabilities with a number of other countries. While the full effects are yet to be determined, instability between Iran and Israel was immediately noted as rockets were starting shortly thereafter and Iran has already been talking of restarting its nuclear facilities, despite threats coming from President Trump.
Cryptocurrencies had a tough week, with Bitcoin falling from the near 10,000 mark to the low 8,000s. The main news attributing to the weakness was the Upbit exchange fraud allegations and a raid by South Korean authorities. It should also be noted that Upbit was one of the largest Steem volume locations as well, which is likely why Steem retreated significantly after the news.
Overall, I remain cautiously optimistic about the outlook on the US capital markets and remain fully invested.
Good luck,
Brian
Thank you sir for the best review :)
This comment has received a 0.78 % upvote from @booster thanks to: @rajon420.
Cryptocurrencies had a tough week, with Bitcoin falling from the near 10,000 mark to the low 8,000s.
One potential reason for the drop may be Mt. Gox, the now-defunct crypto exchange, which is in the process of paying off its creditors. Some have speculated that its trustee sold a large chunk of the bitcoin it had in its coffers, according to Bloomberg.
Yeah, I have heard that the trustee was selling on the open market before as well instead of finding a private buyer and not flooding the market all at once on the ask, so that wouldn’t surprise me. Seems quite reckless to do that.
Great to see Equities still performing strongly and rallying following their dip caused by all the Trump uncertainty (trade war, Syrian war etc).
Hopefully we see continued growth in the coming months.
Developments were really impressive on the market , It is likely that there will be more waste from being affected by the tense file between the United States and Iran . Thank's for sharin For this news . I wish you success sir @brian
The US equity markets continue to tread water, but watch out for the large-cap indexes, more than 40% of the components of the Dow and the S&P 500 are in a downtrend, and the indexes themselves are also in a downtrend. In the past 20 years, there have been four times when more than 40% of the components of an equity index in the US are trending down and the index is trending down, and the returns over the next 18 months have been around -15%. Caution is advised in the large caps, though this situation is reversed in small and mid-caps, and the Nasdaq has 45% of the components trending down, but the index itself is trending up due to a few components like Amazon and Microsoft leading the way. Pretty unhealthy market in the making, I'm not sure I would be fully invested at this point.
Thanks for the market recap. The rise in oil per barrel is indeed based on the US pulling out of the Iranian deal. The oil price has rose steadily through the year
Oh man....did I noticed the decline in the crypto market.
As for the other markets, I am still buying stocks on the low end.
I had heard that Upbit got raided. Someone said they were just running a Ponzi scheme. Don't know if that's true. I haven't looked into it much. That definitely could be a factor in the Steem price drop. It has hurt a bit to see the value of the votes drop, but overall, once it stabilizes, it doesn't make a difference. The votes are smaller at lower levels, but the SP gained is more as a result. It averages out... I think. :D
great information..There is no doubt the United States has led the world for many decades ... These American capital markets have for over a century been the envy of the ... The Trump administration is now undertaking a thorough review..
thanks for sharing,,
@follow you and #upvoted too..
thank you for the review @brian.rrr x