INFLATION PLUMMETED

The latest Personal Consumption Expenditures (PCE) index report has revealed that May’s inflation slowed to its lowest annual rate in more than three years. The core PCE price index, which excludes food and energy, showed a modest seasonally adjusted increase of 0.1% for the month and a 2.6% rise from a year ago. This annual increase is a 0.2 percentage point drop from April, as detailed in the Commerce Department’s report. Both figures met the Dow Jones estimates, and May marked the lowest annual inflation rate since March 2021, the first time in this economic cycle that inflation exceeded the Federal Reserve’s 2% target. Including food and energy, headline inflation remained flat for the month but was also up 2.6% on an annual basis, aligning with expectations. Moreover, beyond inflation, the Bureau of Economic Analysis reported a 0.5% increase in personal income for the month, slightly above the 0.4% estimate. However, it is important to remark that consumer spending only rose by 0.2%, falling short of the 0.3% forecast. Thus, this data offers a nuanced view of the economy: while inflation is easing, consumer spending is not as strong as anticipated.

SHINING BRIGHT

Gold prices has experienced an uptick, positioning them for a third consecutive quarterly increase. Spot gold saw a 0.4% rise, settling at $2,336.57 per ounce, while U.S. gold futures climbed 0.5% to $2,348.6 per ounce. Over the quarter, prices have appreciated by approximately 4%. Commodity experts at Saxo Bank, noted that gold has managed to remain resilient. The consolidation phase has been shallow enough that hedge funds, which bought into the rally in February and March, have not yet faced significant challenges. This enduring strength is largely attributed to a mix of economic and geopolitical factors. In May, the bullion market hit an all-time high driven by a combination of anticipated interest rate cuts, China’s economic stimulus measures, and rising geopolitical tensions. These factors have collectively spurred increased investor demand for gold as a safe-haven asset.

SOLANA ETF FILED

Asset manager VanEck has filed to launch the first Solana (SOL) exchange-traded fund (ETF) in the U.S., following a similar move by 3iQ in Canada. This filing with the Securities and Exchange Commission (SEC) boosted SOL’s market performance, leading to a nearly 8% gain in just 24 hours. VanEck’s head of digital assets research, Matthew Sigel, emphasized that SOL functions like a digital commodity used for transaction fees and computing services on its blockchain. He highlighted Solana’s competitive edge over Ethereum due to its scalability, speed, and low costs. Moreover, the hopes for a Solana ETF are optimistic taking into account the the SEC has already approved Bitcoin ETFs and that is on the process of approving Ether ETFs, however, it is worth nothing that experts believe that meaningful discussions might only begin in 2025, depending on changes in the U.S. administration.

SELLING COSTS

Selling a home is increasingly costly, as laid out in a June 17 report by Clever Real Estate, which found it typically costs $54,616 to sell a house in 2024. According to the report, 42% of home sellers were surprised by higher-than-expected expenses, which include real estate agent commissions, home repairs, closing costs, buyer concessions, moving, marketing, and staging. The most significant portion of this cost, approximately $21,603, goes towards real estate agent commissions. However, a forthcoming policy change could alleviate some of these expenses. A landmark antitrust lawsuit resulted in a $418 million settlement and will alter how agent commissions are handled starting August 17, 2024. Sellers will no longer be required to pay the buyer’s agent commission, potentially saving them around $10,000. Nevetherless, it is worth noting that even with reduced commission fees, many buyers may struggle with additional expenses such as closing costs and down payments, and experts suggest that sellers should still aim to maximize sale efficiency and negotiate fees wherever possible.

DEBATE DRIVEN SURGE

Trump Media’s stock price soared over 11% this morning after Donald Trump, the majority shareholder, benefited from President Joe Biden’s poor performance during their first presidential debate. On Thursday afternoon, the stock had closed down 6.42% at $36.73 per share, but it surged to over $40 per share early this morning with more than 3 million shares changing hands, despite later giving back some of its early gains. Trump owns nearly 65% of Trump Media, which trades under the ticker DJT and has a market capitalization of approximately $6.5 billion, despite having modest revenue. The market reaction came after Biden, aged 81, was seen by many political observers and Democratic donors as performing poorly in the debate, held at CNN’s studios in Atlanta. And a a result of this debate’s fallout, it seem like it has boosted confidence in Trump and, consequently, in Trump Media’s stock.