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Bulls, Bitcoin, & Beyond
Market Moves Yesterday
S&P 500 @ 5,346.99 ( ⬇️ 0.11%)
Nasdaq Composite @ 17,133.12 ( ⬇️ 0.23%)
Bitcoin @ $69,571.20 ( ⬇️ 1.33%)
Hey Scoopers,
Happy Monday! We’ve got an exciting newsletter for you today:
👉 AI and energy consumption
👉 Crude oil prices move lower
👉 Bitcoin ETFs attract investments
So, let’s go 🚀
Market Wrap 📉
The S&P 500 index ended marginally lower on Friday and touched a record-high intraday despite a stronger-than-expected jobs report.
Nonfarm payrolls increased by 272,000 in May, much higher than estimates of 190,000. Average hourly wages increased by 4.1% year over year while the unemployment rate ticked higher to 4%.
Investors have been hoping for weak job figures, which might eventually lead to interest rate cuts in the second half of 2024. Right now, the economy seems to be growing at a steady pace despite elevated interest rates.
Investors will now watch the consumer price index for May, which will be released this Wednesday. Economists expect the CPI to rise by 3.4% year over year, while core CPI, which excludes volatile energy and food prices, is forecast to increase by 3.5% year over year.
Trending Stocks 🔥
GameStop - The meme stock plunged almost 40% after the video game retailer reported an abysmal earnings report. It ended Q1 with net sales of $882 million, down 29% year over year.
Oddity Tech - Shares soared 20% after the beauty and wellness company’s board approved a stock buyback program worth $150 million. It also boosted the earnings outlook for Q2.
Lyft - Shares of the ride-hailing company rose in early-market trading on Friday after multiple analysts upgraded the stock following its investor day last week.
AI Data Centers are Energy Intensive
According to Nextracker CEO Dan Shugar, the surging power of AI (artificial intelligence) and data centers will be met primarily with renewable energy, not fossil fuels.
The low cost and rapid deployment of solar, coupled with the ambitious climate goals of Big Tech, should make clean energy the preferred power choice for data centers.
Energy producers are planning for a spike in demand over the next 10 years as AI platforms such as ChatGPT continue to gain popularity. A Wells Fargo report estimates electricity demand in the U.S. to rise by 20% through 2030 after a decade of flat power growth.
Goldman Sachs forecasts that data center electricity demand will more than double to account for 8% of total U.S. power consumption by 2030. In fact, AI data centers are expected to add 323 terawatt hours of electricity demand in this period, which is 7x greater than New York's annual electricity consumption.
Additionally, the investment bank sees natural gas supplying 60% of the power demand growth from data centers while the rest will be derived from renewables.
Microsoft recently inked a massive renewable energy deal with Brookfield Asset Management. The two companies described the agreement as the largest clean energy deal signed between two corporate partners to date.
These top clean energy stocks are positioned to gain big due to tailwinds surrounding renewable energy.
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Crude Oil Futures Remain Volatile
Crude oil futures posted a third straight weekly loss last Friday on worries that demand may be softening even as OPEC+ plans to raise production.
U.S. crude oil and global benchmark Brent sold off earlier in the week after OPEC+ members announced they would begin phasing out 2.2 million barrels per day in production cuts starting this October.
Poor U.S. manufacturing data and weak private payrolls also weighed on oil prices.
Bitcoin ETFs Attract Investments
According to a Cointelegraph report, spot Bitcoin ETFs (exchange-traded funds) in the U.S. bought 25,729 BTC worth $1.83 billion in the first week of June.
Source: HODL 15 Capital
The amount of Bitcoin acquired last week was almost as much as the entire BTC purchased by ETFs in May, which stood at 29,592. The last week saw the biggest week of buying since mid-March, when the digital asset hit an all-time high of $73,679.
Since launching in January 2024, the 11 spot BTC ETFs saw net inflows of $15.69 billion, with total assets under management of over $61 billion.
Headlines You Can't Miss!
Toyota loses $15 billion in market cap following safety scandal
Gold is getting harder to find, say miners
Europe stocks slide as Macron calls snap election
Norway’s wealth fund to vote against Musk’s $56 billion payout
Crypto adoption is growing, says Binance CEO
Chart of The Day
According to a Visual Capitalist report, jobs in information technology (IT) and finance have the highest share of tasks expected to be impacted by AI.
Within IT, tasks that will be automated include software quality assurance and customer support. In the finance industries, AI could be useful for bookkeeping, accounting, and auditing.
Meme of the Day
DISCLAIMER: None of this is financial advice. The newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.