FACING VOLATILITY
Bitcoin has started off the week facing selling pressure, with its price dropping nearly 3% and breaching a key support level. This decline is thought to be a correction from recent highs due to overbought conditions, and experts suggest a possible pullback in the next few days. Furthermore, it is important to remark that the upcoming U.S. ISM Manufacturing data report could further impact Bitcoin’s price, with a reading below 48.0 potentially causing another drop, while a higher number might spark a rally. However, despite this uncertainty, the outlook for the fourth quarter remains positive, driven by expectations of a rate cut from the Federal Reserve and China’s stimulus announcement. Moreover, investors are eagerly awaiting Fed Chair Powell’s speech today to gain insights into the economic outlook, which could also affect Bitcoin’s performance.
TRILLION MILESTONE
Exchange-traded funds in the U.S. have recently surpassed a significant milestone, with total assets reaching $10 trillion for the first time. This achievement is fueled by a total of $691 billion flowing into ETFs this year, driving market gains and pushing total assets to the historic mark. Also, it is worth noting that the rapid growth of the ETF industry in recent years is evident, considering that it took just 14 years to go from $1 trillion to $10 trillion in assets, and this is likely because due to their liquidity and tax efficiency, they have become very appealing to a wide range of investors. Furthermore, with thousands of ETFs available, Vanguard Group Inc. leads the way for a third consecutive year as it has attracted 32% of all flows. Moreover, let’s remark that with a constant stream of new funds being introduced and innovations aimed at attracting market share, ETFs are considered to be proving the preferred investment choice for many individuals, marking a shift towards more tailored and outcome-oriented investment strategies.
ACCESSIBLE SHARES
Today, Super Micro Computer is undergoing a significant change as it will carry out the planned stock split it announced last week. After the market close, Supermicro will split its stock at a 10-for-1 ratio, making shares more affordable and appealing to a broader range of investors. As for existing shareholders, they will receive additional shares to adjust the value per share. Supermicro’s decision follows a trend among tech companies like Nvidia and Broadcom who have recently made similar moves to boost accessibility and attract new shareholders. Moreover, it is worth noting that Supermicro’s stock has surged in recent years due to the increasing demand for its AI-related products, such as servers and workstations tailored for data centers, and the strategic adjustment is expected to increase its liquidity and market participation, setting the stage for potential growth and expansion in the coming days.
INTERNATIONAL NEWS
The Chinese stock market is currently experiencing a surge fueled by recent government stimulus measures aimed at boosting economic growth. This has led to a frenzy among investors, with the benchmark index CSI 300 recording its largest gain since 2008 and entering a bull market as it closed at 4,017.85, up 314.17 points or 8.48%. In addition, trading turnover has soared to record levels, leading to a surge in requests for trading accounts and overwhelming broker applications, and although there are concerns about past market volatility, the market sentiment remains largely positive, as indicated by the Fear and Greed Indicator reaching its highest level since 2015. Nevertheless, amidst the excitement, it is important to remark that experts have pointed to a cautious outlook, with some warning of a potential market bubble and urging investors to approach the surge with prudence to avoid potential risks.
KEY EVENTS HAPPENING THIS WEEK
Monday: Chicago Business Barometer (PMI) report for September, and speeches from Federal Reserve Chair Jerome Powell and Governor Michelle Bowman.
Tuesday: Construction spending and job openings reports for August, S&P final U.S. manufacturing PMI, ISM manufacturing and auto sales reports for September, and speeches from Fed Governor Lisa Cook, Richmond Fed President Tom Barkin, Atlanta Fed President Raphael Bostic and Boston Fed President Susan Collins.
Wednesday: ADP employment for September and speeches from Fed Governor Michelle Bowman, Cleveland Fed President Beth Hammack, St. Louis Fed President Alberto Musalem, and Richmond Fed President Tom Barkin.
Thursday: Factory orders report for August, initial jobless claims for week ending on September 28, and speeches from Minneapolis Fed President Neel Kashkari and Atlanta Fed President Raphael Bostic.
Friday: U.S. nonfarm payroll, unemployment rate and hourly wages reports for September, and speech from New York Fed President John Williams.
