Tuesday’s stronger-than-expected consumer prices data is a step in the wrong direction in the fight against inflation, according to David Russell, global head of market strategy at TradeStation. Silver is the second most https://g-markets.net/ popular precious metal after gold and one of the go-to inflation investments. When I’m looking at everything that has been happening over the last few months, it feels like it’s a good time to talk about silver again.

The broad-based Topix also gained 2.12% to close at 2,612.03, also at a 34-year high. The index surpassed 38,000 points just minutes before its close, but slipped slightly to end the day at 37,963.97 with a 2.89% gain. Hasbro also said to brace for a weak gross margin and drop in full-year revenue tied to consumer products. The small cap-focused Russell 2000 dropped more than 3% in Tuesday’s session.

1. Bond yields have risen significantly since Federal Reserve Chair Jerome Powell tempered rate cut expectations.
2. Depending on when these cool down, I think that silver can go up to $30, even $35 dollars within the next 12 months, but it does make sense that prices will stabilise and decline after that as long as inflation cools down.
3. Yields and prices move in opposite directions, and one basis point equals 0.01%.

Not surprisingly, the technology sector has the highest forward P/E ratio of all at 28.3 followed by the consumer discretionary sector at 24.4. Adding to investor optimism, the Federal Reserve has made tremendous progress on the inflation front in the past two years, which means the Fed could be positioned to finally begin cutting interest rates in the first half of 2024. Shell said it expected global demand for liquefied natural gas to grow beyond 2040, driven by industry in China and economic development in South and Southeast Asia.

Wall Street’s big fear is that higher rates will eventually lead to an economic slowdown or even a recession. Investors are incredibly anxious about inflation, which refuses to go away. The Dow plummeted more than 1,050 points, or 3.3%, in late afternoon trading Tuesday. The S&P 500 and Nasdaq fared even worse, tumbling 3.6% and 4.5% respectively. The forecast is for a year-over-year increase of 8.8% for overall producer prices and 7.1% over the past 12 months for core PPI, which excludes food and energy costs.

January’s strong CPI data sends stock futures down

There is no precise definition for a “crash” but it is usually described in terms of time, suddenness, and/or by severity. Increasingly, Google searches have been focused on the state of the market (and the economy), and for a good reason. Get an email summary of the top stories leading MarketWatch after the U.S. market close. The S&P 500’s current rally bodes well for the month of February and for the rest of 2024. Futures tied to the Dow Jones Industrial Average fell 24 points or 0.06%. S&P 500 futures pulled back 0.1%, while Nasdaq 100 futures ticked down 0.2%.

On the other hand, the total gold supply fell to 4,666 tonnes in 2021 by around 1% as compared to 2020. Even though gold production from mines went up by 2%, recycled gold actually fell by 11% which resulted in the overall drop. Still, we can see that there is definitely more than enough supply to meet demand and, from the looks of it, there is no pressure on gold prices from a supply and demand point. “The housing market is off to a good start this year, as consumers benefit from falling mortgage rates and stable home prices,” said Yun, in the report.

Small-cap benchmark Russell 2000 pops for a 3rd straight day

Divounguy says “getting on the housing ladder” is worthwhile to begin building equity and net worth. In December, foreclosure filings were down 6% from last month and 2% from a year ago, according to Attom. Lenders began the foreclosure process on 270,222 properties in 2023, which was 20% lower than in 2019. The biggest reasons for this, Sharga explains, are the strength of the economy—we’re still seeing low employment and steady wage growth—along with excellent loan quality. Despite foreclosure activity trending up nationally, experts generally don’t expect to see a wave of foreclosures in 2024. “Better that rate reductions happen at a metered pace, incrementally improving buyer opportunities over a stretch of time, rather than all at once,” Gumbinger says.

Will declining mortgage rates cause home prices to rise?

However, Yun noted that a meaningful increase in resale inventory will be pivotal to support the bump in demand that experts anticipate declining mortgage rates will stimulate. The federal funds rate is the benchmark interest rate financial institutions charge each other for overnight loans; it tends to indirectly influence mortgage rates. Though mortgage rates are better now than they were in the fall, and experts are optimistic that rates will drop further in 2024, home affordability challenges aren’t going away anytime soon. For me, the fourth-quarter report was a preview of what investors could expect on an ongoing basis. As artificial intelligence software becomes more prominent in IT budgets, Palantir should be well positioned to benefit from secular tailwinds.

Still, the current gold-to-silver-price ratio is just under 80 which means that silver is relatively cheap compared to gold right now. Over the last 25 years, the ratio has typically stayed around levels of 65 to 70 so silver is looking like a good purchase right now, at least to me and I am not a financial advisor and this is not financial advice. Plus, it is important to remember that assets like silver and gold are long-term investments so you should be prepared to be patient if you are buying in.

On traditional valuation measures, valuations do appear high and it does seem reasonable to expect more moderate stock market returns going forward,” Buchbinder says. Fourth-quarter earnings season kicked off in mid-January, and results have been somewhat disappointing up to this point. S&P 500 companies have reported a 1.4% price action patterns year-over-year decline in earnings per share in the quarter, putting the market on track for its fourth consecutive annual earnings decline in the past five quarters. The company earned an adjusted 49 cents per share, matching an LSEG estimate. Revenue came in at $10.85 billion, beating a forecast of $10.68 billion.

Someone who is older may want to discuss the situation with their financial adviser and a younger investor may be able to hold tight if they are comfortable with their current investment setup, strategists say. Salil Mehta, a statistician and a former director of analytics for the U.S. “[Declines of] zero to 5%, I call noise but the closer we get to 5% the louder the noise,” he said. He said a 5%-10% decline qualifies as a pullback, a drop of at least 10% is a correction for him and a fall of 20% or greater is a bear market. The Nasdaq Composite entered correction last Wednesday, ringing up a fall of at least 10% from its recent Nov. 19 peak, which meets the commonly used Wall Street definition for a correction.

Small-cap stocks took a particularly harsh beating as the market struggled on Tuesday, pulling a closely followed index back into negative territory on the year. The chipmakers, slated to report earnings next week, has rallied nearly 47% year to date and is up 18% this month as Wall Street amps up its bets on artificial intelligence and growth. The stocks are respectively down more than -23% and 13% so far today, followed by Marathon Digital and OneSpan with losses around 8% each. WK Kellogg — The cereal company’s shares surged 11%  after posting a beat on both top and bottom lines in the fourth quarter. Companies whose performance is tied to the price of bitcoin were dragged with it. The crypto exchange Coinbase fell 5%, while bitcoin proxy Microstrategy lost 4%.

Computer graphic software maker Adobe could shed light on consumers’ appetite for AI products with its earnings report on Thursday, which comes after it introduced new AI tools for Photoshop and other products this year. Treasury yields finished little changed on Monday as traders looked ahead to the January consumer-price-index report, due out Tuesday. Wall Street analysts are expecting earnings to rebound in the first half of 2024, projecting a 4.6% increase in S&P 500 earnings in the first quarter and another 9.4% growth in the second quarter. Jerry Klein, managing director at Treasury Partners, says investors are way too optimistic about interest rate cuts in 2024.

Financial markets

Goldman Sachs sees it hitting $2,500 which is much higher than gold’s all-time high price of $2,063 which it hit in August of 2020. They are not the only one to see such high gold prices though and other banks and precious metal traders are also expecting gold prices of up to $2,500 with the average price for 2022 being around $2,000. Typically, we should be skeptical when we see such optimistic price targets, but I personally think this actually makes sense.

Economists expected prices would fall very slightly in August as gas prices have dropped for 91 straight days. Instead, prices rose, giving investors a collective heart attack over the Fed’s plans to curb inflation. The S&P 500 was down more than 3% and just four stocks in the blue chip index were in positive territory. Agriculture company Corteva (CTVA) was the S&P 500 leader, gaining 2% following news of a stock buyback. Fertilizer stocks CF Industries (CF) and Mosaic (MOS) and chemicals company Albemarle (ALB) were higher too. The US government will release figures for the producer price index, which measures prices at the wholesale level…as opposed to today’s consumer price index report.