3 Big Scoops

Hello Folks,

Here’s what’s on the menu for today:

👉 The S&P 500 spike

👉 Interest rate cuts

👉 Bitcoin attracts inflows

Tech Stocks Lead S&P 500 Gains

Stocks experienced a strong rally yesterday as Wall Street cheered new U.S. inflation data, which raised hopes that interest rate hikes might finally come to an end.

The consumer price index or CPI was flat for the month of October, compared to estimates of a 0.1% gain month over month. The core CPI, which excludes food and energy prices, was lower than estimates and rose at the slowest rate in two years.

Following the report,

• The S&P 500 index surged 1.91%

• The Dow Jones Index rallied 1.43% and

• The Nasdaq Composite jumped 2.4%

Moreover, the 10-year Treasury yield, which leaped over 5% in October, tumbled to below 4.5%.

Will Interest Rates Fall In 2024?

UBS expects the Federal Reserve to cut interest rates by 275 basis points in 2024, almost 4x higher than consensus estimates.

The Swiss bank emphasized that while the economy has remained resilient in 2023, several headwinds and risks remain, forcing the Federal Reserve into another period of quantitative easing.

UBS estimates disinflation and higher unemployment will weaken economic output in 2024, leading to interest rate cuts.

As inflation touched multi-year highs, the Fed increased interest rates 11 times between March 2022 and July 2023.

Digital Assets Surpass $1 Billion in Inflows

According to a report from Coinshare, crypto inflows totaled $293 million last week, increasing net inflows to $1 billion in 2023.

Here are a few key metrics from the report:

👉 Inflows have surged for seven consecutive weeks

👉 Bitcoin ETP (exchange-traded product) trading volumes account for 19.5% of Bitcoin trading volume.

👉 Ethereum inflows totaled $49 million last week, the largest week of inflows in 15 months

👉 Solana’s inflows stand at $12.4 million 

Headlines You Can’t Miss!

Is the Great Resignation over?

Inflation breakdown in a single chart

China’s unfinished property projects climb

German housebuilding is collapsing

UK inflation falls to 4.6%

Chart of the Day

The S&P 500 index has surged 520% in the past 20 years, indicating annual returns of 10%. Historically, equities have been an asset class that has helped long-term shareholders derive outsized gains.

But which is the best-performing S&P 500 stock in this period?

Monster Beverage has delivered annual returns of 39%, rising close to 83,000% since 2003. Currently valued at $57 billion by market cap, Monster Beverage stock is down 7% from all-time highs.

The other top-performing S&P 500 stocks include:

👉 Tech giants such as Apple, Nvidia and Netflix

👉 Intuitive Surgical, which is a healthcare heavyweight and

👉 Booking.com, a global travel platform

DISCLAIMER: None of this is financial advice. This 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.