NAGA Weekly Recap May 13 - 2024 – May 17 - 2024

Over the past week, financial markets were buzzing with significant milestones and movements. The Dow Jones made headlines by crossing the 40,000 mark for the first time. Meanwhile, GameStop's stock experienced dramatic volatility and the Australian Dollar faced pressure amid mixed Chinese data and a stronger US Dollar.

Read on to get the full scoop!

Dow Jones Industrial Average tops 40,000 for the first time

The Dow Jones crossed 40,000 for the first time, a milestone that seemed implausible just over two years ago when the Federal Reserve began raising interest rates to cool an overheated economy.

Back then, predictions of economic hardship were rampant. The era of ultralow rates, which had persisted since the global financial crisis, came to an end, leading many economists to foresee a painful adjustment period. Remarkably, this milestone comes less than two decades after the Dow plummeted below 7,000 during the Great Recession in March 2009.

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GameStop plummets after soaring 200%

Shares of GameStop have suffered their worst two-day stretch since 2021 after ending Thursday’s session down 30%.

The stock is down 43.2% over the past two trading sessions, marking its biggest two-day decline since it fell almost 41% over the sessions ending Feb. 4, 2021. This sharp decline comes after an unprecedented surge, with GameStop shares skyrocketing over 1000% in just one day earlier this month, showcasing extreme volatility and leading to the current market correction.

Shares of fellow meme-stock AMC have followed a similar trajectory to GameStop this week. After skyrocketing on Monday and Tuesday, AMC shares fell 20% on Wednesday and ended Thursday’s session down 15.3%.

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Oil prices rise on US rate cut hopes

Crude prices edged up after data showed a stabilizing US job market, raising expectations that the Federal Reserve might cut interest rates in autumn, which could boost the economy and oil demand.

Brent Crude futures rose to $83 a barrel, while U.S. West Texas Intermediate (WTI) went up to $79.

"Even though jobless claims were low, the report was weak enough to allow the Fed to consider rate cuts," said John Kilduff of Again Capital. “Strong employment trends suggest strong gasoline demand.”

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Australian Dollar falls amid mixed Chinese data, stronger US Dollar

The Australian Dollar continues to decline for the second consecutive session, influenced by mixed economic data from China. Despite China’s Retail Sales increasing for the 15th month in a row, the gain was the smallest in the sequence, adding uncertainty. Additionally, Australia’s 10-year bond yield has dropped to a monthly low of 4.2%, further weakening the AUD.

Australia's recent employment figures showed slowing wage growth, leading markets to doubt any interest rate hikes by the Reserve Bank of Australia (RBA). Meanwhile, the US Dollar has strengthened as the Federal Reserve remains cautious about inflation and potential rate cuts in 2024, adding to the pressure on the Australian Dollar.

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This concludes our weekly recap. Have a great weekend and see you next week! 👋