Reflecting on this eventful week, we observed considerable shifts in the entertainment and tech arenas. Amazon's strategic changes to its Prime Video platform show a larger trend among streaming behemoths. Coupled with stock market fluctuations, these events hint at intriguing developments for the future.
Dive in to understand these market-defining moments in detail ⬇️
10-year US Treasury Yield rises to long-term average
US stocks ended positively, buoyed by a decline in bond yields from their highest levels in several years. Michael Reinking of the NYSE noted the market's struggle in a negative pattern, with various sectors nearing extreme shifts, hinting at a potential counteraction based on overbought/oversold conditions. In other economic news, the Labor Department reported that initial jobless claims were 204,000 for the week ending September 23, coming in lower than the projected 214,000, while continuing claims slightly increased to 1.67 million.
As the market concluded, the S&P 500 was up by 0.59% at 4,299.71, the Dow Jones rose by 0.35% to 33,666.34, and the Nasdaq Composite gained 0.83% to settle at 13,201.28.
Trading involves significant risk of loss.
Amazon's Prime video to introduce advertisements in 2024
Amazon ($AMZN) is gearing up to introduce advertisements to its Prime Video platform in 2024. This change will affect users in major markets including the UK, US, Germany, and Canada.
Those keen on an ad-free experience can avail of a special subscription at an extra fee. This decision echoes those made by competitors like Disney+ and Netflix, indicating a trend in streaming services seeking additional revenue streams.
Recall that the company's stock price has 📉 fallen nearly $15 since Sept. 14. Therefore, the decision to look for new sources of income seems timely.
Trading involves significant risk of loss.
Gold ($XAUUSD) plunged to its lowest level since March 10, 2023
Gold prices dipped to their lowest since early March at $1,857.66 per troy ounce this week. This decline came despite the weakening US bond yields, which generally support the metal. The recent drop in gold's value coincides with a strengthening US Dollar against major currencies but not against gold itself.
Positive economic data from the US, including a confirmed Q2 GDP growth of 2.1% and better-than-expected Initial Jobless Claims, contributed to an uplifted market sentiment, further pressuring gold prices. Investors are now eyeing the US PCE Price Index for insights on the Federal Reserve's potential rate adjustments.
Trading involves significant risk of loss.
The US Dollar eases from 10-month high but on track for weekly gain
The US Dollar index retreated slightly from its 10-month peak but is set to record a weekly rise. Despite this dip, the US currency remains robust due to anticipation that the American economy will handle higher interest rates better than other nations. This belief was reinforced after recent indications from the Federal Reserve about potential further rate hikes.
Concurrently, as the yen hovers near its 11-month low against the dollar, there are rising concerns about possible intervention. The dollar's strength is attributed to the dual effects of increasing yields and a shaky risk sentiment, especially with the US economy outshining its global counterparts.
Trading involves significant risk of loss.
This concludes our weekly recap. Have a great weekend and see you next week! 👋
