It was a busy week for economic events, from signals of more Fed rate hikes to a drop in the value of Gold. Read more in our weekly recap!
Another interest rate hike is still on the table
The newly-released minutes from the Federal Open Market Committee’s July 25-26 meeting show that members continue to view inflation as a threat and are willing to hike rates further to address it.
As a reminder, the Fed in July raised its short-term benchmark fed funds rate by a quarter percentage point to a target range of 5.25% to 5.50%, the highest level in 22 years, following a rate hike pause in June.
Following these statements, markets reacted mixed. For example, the Nasdaq, Dow Jones, and SPX500 indices continue to decline for the second day in a row.
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Cisco earnings top estimates on top & bottoms lines
Cisco Systems, Inc. ($CSCO) announced its fourth quarter and fiscal year 2023 financial results, reporting record revenue and earnings per share. The company achieved nearly $57 billion in revenue, representing an 11% year-over-year growth rate, the highest in over a decade.
Throughout the fiscal year 2023, customer demand remained solid, with over 30% total sequential product order growth in the fourth quarter, the second highest in 20 years.
Looking ahead, Cisco aims to grow its market share in all key areas of its business.
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Spot Gold trades below $1900
Gold ($XAU/USD) trades higher near $1,890 per troy ounce during the Asian session on Friday, showing signs of recovery after experiencing losses for the fourth consecutive week. The retreating US Dollar has contributed to this rebound in the price of Gold. Investors remain cautious as uncertainties persist in the market.
On Thursday, China’s economic growth worries combined with expectations that the US Federal Reserve (Fed) will keep interest rate higher for longer fuelled massive risk-aversion. They bumped up the demand for the safe-haven.
This could be the impetus for gold to recover above $1900.
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Bitcoin price plunges, but there's a silver lining
Bitcoin, the world's premier cryptocurrency, has experienced a significant drop in its value, with prices plummeting to an intraday low of $27,683, marking a 4.4% decrease.
This decline comes amidst a backdrop of broader financial unease, with London's FTSE 100 and FTSE 250 indices both hitting one-month lows, influenced by hawkish meeting minutes from the US Federal Reserve and concerns over China's economic landscape. However, not all market participants are pessimistic. Ali, a notable figure in the crypto trading community, recently expressed his confidence in Bitcoin by purchasing during its dip.
Such sentiments indicate that some investors perceive the dip as a chance to buy, relying on Bitcoin's historical ability to recover and rebound.
Trading involves significant risk of loss.
This concludes our weekly recap. Have a great weekend and see you next week! 👋
