REMARKABLE INFLOWS
According to CoinShares, cryptocurrency investment products have recently experienced a substantial surge in inflows, accumulating close to $2 billion last week and contributing to a cumulative total surpassing $4.3 billion over a five-week period. Among the various cryptocurrencies, Bitcoin emerged as the frontrunner in investment activity with over $1.97 billion in inflows, while Ether witnessed a notable uptick in investments at nearly $70 million, marking its strongest performance since March. This surge in interest comes after a period of stagnation in April, particularly in the realm of spot bitcoin exchange-traded funds (ETFs) in the U.S., which has seen a resurgence in investor participation since mid-May. Moreover, the recent approval by the U.S. Securities and Exchange Commission (SEC) of regulatory filings for Ether ETFs also signifies a very pivotal moment for the cryptocurrency market, further fueling optimism and expectations for continued capital inflows and potential market growth in the short to medium term.
RATE CUT EXPECTATIONS DAMPENED
The unexpectedly strong job growth and wage rise in May have shifted market expectations regarding potential interest rate cuts by the Federal Reserve. The healthy labor market has led to a conviction that the Fed may opt to keep interest rates steady through the summer and potentially beyond, and while some had anticipated rate cuts, the current economic indicators, including rising inflation rates and robust job market conditions, have dampened the prospects of immediate monetary policy adjustments. As a result, futures traders have responded by reducing their bets on imminent rate cuts, with only a modest chance of a reduction at the upcoming Federal Open Market Committee meeting due on Wednesday. Moreover, it is worth noting that market sentiments acknowledge the need for further data, particularly on inflation trends, to ascertain the timing and extent of future rate adjustments.
SHARES MORE ACCESSIBLE
Nvidia has implemented its 10-for-1 stock split, reducing the share price from $1,208.88 to $120.88. This has made Nvidia’s stock more accessible to a wider range of investors. Let’s remember that the split was a response to the company’s surging market valuation and success in generative AI technology. Nvidia’s revenue growth has been particularly strong in Nvidia’s Data Center segment, accounting for a significant portion of its total revenue. In addition, it is expected that after the recent stock slit, Nvidia is expected to deliver strong performance in the coming months. Moreover, it is worth noting that although Nvidia still faces competition from rivals like AMD and Intel, the company aims to continue on the lead as it is planning to launch new hardware platforms in the near future. As a result, the AI leader is still attracting customers from diverse sectors beyond just tech, such as government organizations and research institutions.
INTERNATIONAL NEWS
President Emmanuel Macron of France faces political uncertainty after a significant defeat in the European Parliament election. He has called for a snap legislative election, setting up a showdown with far-right leader Marine Le Pen. While Macron’s presidency is secure, the outcome of this vote will impact his ability to pass laws, choose a prime minister, and maintain credibility. This risky move is seen as Macron’s attempt to thwart Le Pen’s growing popularity, as she aims for the 2027 presidential election. The financial markets immediately reacted, with the euro falling by 0.5% to $1.0748 and French bond yields widening against Germany by more than 52 basis points. France’s CAC 40 stock index also dropped by 2.2% in early trading on Monday in Paris. These shifts indicate concerns about potential political instability in France and the impact it could have on the country’s economy.
KEY EVENTS HAPPENING THIS WEEK
Tuesday: NFIB optimism index report for May.
Wednesday: Consumer price index and monthly U.S. federal budget report for May, FOMC interest-rate decision, and speech from Fed Chair Jerome Powell.
Thursday: Initial jobless claims report for week ending on June 8, and producer price index report for May.
Friday: Import price index report for May, and preliminary consumer sentiment report for June.
