In today’s daily market update, we bring you promising news about the US economy, a focus on manufacturing activity, home prices, and the performance of major benchmark equity indices. Additionally, we explore the recent movement of the Dollar and digital assets like Bitcoin and Ethereum. Let’s dive into the details and gain valuable insights into the current financial landscape.
US Benchmark Equity Indices Rise on Optimistic Economic Forecast
The US benchmark equity indices experienced a boost as Treasury Secretary Janet Yellen expressed confidence in the economy, stating that a recession is unlikely. With a strong labor market and encouraging price data, the US is on a positive trajectory to combat inflation. Notably, the Nasdaq Composite advanced 0.9% to 14,245, the S&P 500 gained 0.4% to 4,522.8, and the Dow Jones Industrial Average closed 0.2% higher at 34,585.4.
Manufacturing Activity Holds Steady in New York
Amidst economic news, the Federal Reserve Bank of New York reported that manufacturing activity in New York remained in positive territory in July. The new orders measure stayed steady, with the Empire State Manufacturing Survey’s general business index slipping to 1.1 from June’s reading of 6.6, outperforming expectations for a negative print of -3.
Housing Market and Record-Low Inventory
In June, home prices saw a sequential growth of 1.9%, but inventory hit a record low due to elevated mortgage rates. The median home sale price in the US reached $426,056, slightly below the May 2022 record high of $432,397. The housing market continues to be a critical factor in the economic landscape.
Dollar Movement and Upcoming Federal Reserve Meeting
The Dollar experienced a slight decline on Monday, following its largest weekly decline this year as Treasury yields dipped but remained above the one-year lows reached on Friday. Traders are eagerly awaiting the upcoming Federal Reserve meeting, where a 25 basis points rate hike is expected. The Dollar Index was last down 0.12%, while USD/JPY dipped 0.07%, GBP/USD fell 0.06%, and EUR/USD gained 0.14%.
Digital Assets and Bitcoin’s Resilience
In the realm of digital assets, Bitcoin (BTC) has been showing resilience despite recent challenges. The cryptocurrency briefly slid below the $30,000 level but rebounded back above it. Ethereum (ETH) also faced a decline, sliding 2.2% to $1,887 before recovering to $1,912. Traders are closely monitoring these assets amid their trading ranges.