Wall Street Takes a Step Back
- Despite starting the week strong, with the SPX500 turning positive for the year, US markets finished last week lower.
- The DJ30 registered a weekly loss for the first time in four weeks.
- After showing massive gains and lifting Wall Street higher earlier in the week, big tech also took a step back, as Amazon, Apple, Google, Facebook and Microsoft all finished the week lower.
- While the NSDQ100 is positive YTD, led by the tech companies, the finance and energy sectors are behind reflecting a 20% and 35% loss, respectively.
- Despite a 4.9% revenue decline YoY, Tesla reported its fourth consecutive positive quarter. The TSLA stock is up 500% YoY.
US-China Cold War Heats Up
- The ongoing trade war between China and the US escalated last week, posing the threat of an actual cold war.
- On Tuesday, the Chinese consulate in Houston was closed, as Washington accused the Chinese consulate of being “a hub” for Beijing’s espionage and theft of intellectual property in the United States.
- In response, on Thursday, the US consulate in the city of Chengdu, was closed by order of Beijing.
- The ongoing tensions between the two superpowers may impact the positive trends seen in both markets in recent months.
Bitcoin Passes $10K
- Last week, Ethereum announced the launch of its final testnet, shooting the Ether currency up more than 25% last week. Ether crossed $300 for the first time in more than a year and reached a near 2-year high this morning.
- Other cryptocurrencies were also lifted by the Ethereum spike, including Bitcoin, which climbed above $10,000 for the first time since June.
Gold Hits All-Time High
- The uncertainty in markets and the ongoing weakening of the USD has investors turning to safe-haven assets.
- Gold continued to climb throughout last week, rising above the $1,900 mark and reaching a new all-time high over the weekend.
- Gold’s last all-time high was recorded in 2011.
- Silver also climbed, reaching its highest levels since 2013.
The Week Ahead
- Big week for earning: Apple, Amazon, Alphabet and Facebook will be releasing their quarterly earnings report next week.
- FOMC rate decision: The Fed will announce its latest monetary policy and rate decisions on Wednesday.
- Facebook, Amazon, Apple, and Google CEOs will be testifying before the House Judiciary Committee on Wednesday.
Written by a team of experienced financial analysts at eToro.
This content is for information and educational purposes only and should not be considered investment advice or an investment recommendation. Past performance is not an indication of future results.