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Bulls, Bitcoin, & Beyond
Market Moves Yesterday
S&P 500 @ 5,509.01 ( ⬆️ 0.62%)
Nasdaq Composite @ 18,028.76 ( ⬆️ 0.84%)
Bitcoin @ $60,852.40 ( ⬇️ 1.92%)
Hey Scoopers,
Happy Wednesday! Are you ready to tackle the midweek hustle?
👉 Tesla beats Q2 delivery estimates
👉 AI to drive data center demand
👉 Bitcoin may soon gain pace
So, let’s go 🚀
Market Wrap 📉
Equity markets rose yesterday after Fed Chair Jerome Powell noted progress on inflation while reiterating that interest rate cuts are still a few months away.
Powell stated, “We’ve made quite a bit of progress in bringing inflation down to our target. We want to be more confident that inflation is moving sustainably down towards 2% before we start the process of……loosening policy.”
According to Citi, the S&P 500 index has more room to run in the second half of 2024, but investors should be prepared for a bumpy ride with interest rate cuts on the horizon.
Trending Stocks 🔥
Paramount Global- Shares popped 6.6% in pre-market after multiple reports stated that Skydance Media has reached a preliminary agreement to buy National Amusements, the media giant’s controlling shareholder.
Polestar - The EV maker tumbled 5.5% after its Q1 loss widened to $274.3 million from $37.7 million in the year-ago period. However, it has increased car deliveries by 80% in the last 12 months.
Apple - Shares of the iPhone maker touched a record high fueled by optimism surrounding plans to introduce AI tech to its devices.
Tesla Stock Surges 10%
Shares of electric vehicle manufacturer Tesla jumped 10% yesterday after it posted Q2 vehicle production and delivery numbers that beat consensus estimates.
Tesla Vehicle Deliveries Comparison
Source: Statista
In the June quarter, Tesla reported total deliveries of 443,956 vs. estimates of 439,000. Further, its total deliveries fell by 4.8% year over year but rose by 14.8% from Q1.
Vehicle deliveries are a close approximation of sales. In April, Tesla reported an 8.5% drop in Q1 deliveries, its first annual decline since 2020. Moreover, lower average selling prices meant its sales fell by 13% in Q1.
Tesla’s sluggish sales in the last two quarters can be attributed to several factors that include:
An alleged arson attack at its factory in Germany
Shipping delays following Red Sea conflicts
An aging vehicle lineup and
Increased competition from Chinese makers
Tesla stock currently trades 44% below all-time highs and has trailed the broader markets in the last year.
Data Center CapEx to Double
According to Wells Fargo, data center construction spending will double in 2025 and remain strong in the foreseeable future.
Data center construction spending in May totaled $27 billion, up from $16 billion in the year-ago period.
The deployment of several AI models will likely be the key driver of data center construction spending in the upcoming decade.
Bitcoin Bull Run to Gain Pace
A research report released by CCData stated that Bitcoin is yet to reach the top of its current appreciation cycle and is likely to end 2024 at fresh record highs.
BTC prices touched an all-time high of $73,700 in March but have since fallen to $61,000 at the time of writing.
Bitcoin traded at record levels in March, primarily driven by the approval and launch of spot BTC ETFs in January. To date, these funds have attracted net inflows of $14.4 billion.
The bitcoin cycle is typically centered around the halving event, which cuts mining rewards in half, essentially reducing the supply of bitcoin.
CCData explained that historical trends have shown the halving event precedes a period of price expansion that can last between 366 days and 548 days.
The last Bitcoin halving occurred on April 19 this year, indicating that these historical timeframes are still a few months away.
Headlines You Can't Miss!
Turkey’s annual inflation dips to 71.6% in June
China owns 80% of the supply chain for Tunsgten
Greece becomes the first EU country to launch a six-day workweek
Byd poised to beat Tesla in EV battery sales
Crypto miner CleanSpark exceeds mid-year hash rate target
Chart of The Day
Millennials have often been referred to as the “broke generation.” However, as seen in the above chart, the wealth of Americans under 40 has hit historic highs after the COVID-19 pandemic.
It suggests millennials have accumulated more wealth by their 40s than previous generations.
The Visual Capitalist chart shows the average wealth of U.S. households under 40 was $259,000 at the end of Q4 of 2023, up from $164,000 in 1989 and $182,000 in 2000.
Average housing wealth, or house value minus mortgage debt, rose by $22,000 between 2019 and 2023. Lastly, younger Americans saw gains in liquid assets such as bank deposits, money market mutual funds, and stocks.
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.