Weekly Market Recap & Outlook

Last Week Market Recap

Last week, the U.S. stock market faced significant turbulence, driven by a mix of economic data and global events. The S&P 500 closed at 5,344.16, up 0.47% for the week, despite the volatility. Early in the week, disappointing labor market data revealed a slowdown in job growth and a higher-than-expected unemployment rate, sparking fears of a recession and triggering a broad sell-off in risk assets.

The situation worsened with the Bank of Japan’s unexpected decision to raise interest rates, sending shockwaves through global financial markets. This move led to a sharp decline in the NIKKEI and significantly impacted U.S. technology stocks, as investors reacted to the unexpected tightening of monetary policy in Japan. The uncertainty was noticeable, with many market participants concerned about the broader implications of this shift.

However, by the end of the week, remarks from Federal Reserve Chair Jerome Powell offered some relief. While Powell maintained a cautious tone, his comments were seen as a signal that the Fed might consider interest rate cuts if economic conditions continued to deteriorate. This interpretation helped stabilize the S&P 500, allowing it to recover from earlier losses, though overall sentiment remained cautious.

Next Week Market Outlook

The stock market is poised to remain highly responsive to forthcoming economic data and Federal Reserve decisions. Investors will closely monitor key indicators like inflation rates and employment data, as these could heavily influence the Fed's interest rate policies. Signs of economic slowdown or unexpected inflationary pressures could trigger increased market volatility. Additionally, the upcoming Consumer Price Index (CPI) report will be closely watched, as it could provide critical insights into inflation trends and shape expectations for future rate cuts.

Corporate earnings reports will also be pivotal in shaping market sentiment. Robust earnings could bolster equity prices, while disappointing results might deepen market declines. This week, major companies such as Walmart and Target are set to report their earnings, and their performance could significantly impact the broader market. The S&P 500 will be particularly scrutinized as it navigates this period of economic uncertainty.

Geopolitical developments, such as tensions in the Middle East, ongoing trade negotiations, and potential changes in U.S. fiscal policy, are poised to impact market dynamics. Additionally, the market is set to respond to the outcomes of the Jackson Hole Symposium, where Federal Reserve officials will offer crucial insights into the central bank's monetary policy stance. Investors must remain alert and adjust their strategies to navigate the evolving landscape, balancing risk and opportunity in a market environment that may see significant fluctuations in the coming weeks.

Last Week Crypto Market Recap

The cryptocurrency market had a rough week, with the total market cap dropping over 28%, wiping out more than $670 billion. Bitcoin briefly hit $61,000 but settled around $60,000, moving in sync with the positive trends in traditional stock markets.

Ethereum saw a steep drop, falling below $2800 to around $2100. This was largely due to major sell-offs by players like Jump Crypto and ongoing outflows from Grayscale’s Ethereum Trust.

Amid the downturn, Solana stood out, showing strength and even hitting new highs against Ethereum, signaling growing investor confidence. The market's turbulence was further impacted by global liquidity concerns tied to Japan's central bank decisions, adding to the overall volatility.

Next Week Crypto Market Outlook

Next week, expect continued volatility in the cryptocurrency market, driven by multiple factors. All eyes will be on the Federal Reserve's upcoming decisions, especially regarding interest rates, which could greatly influence risk assets like cryptocurrencies. A dovish approach from the Fed might offer a short-term lift to the market, whereas indications of ongoing tightening could exert additional downward pressure.

The performance of Bitcoin is set to be crucial, particularly as it navigates key psychological levels. Traders are keenly observing whether Bitcoin can sustain its momentum above $60,000 or if it will encounter resistance, possibly triggering a pullback. Meanwhile, Ethereum remains under scrutiny due to recent sell-offs and continued outflows from major institutional players such as Grayscale.

On the other hand, Solana's strong performance last week could continue if investor confidence in its fundamentals remains high. Altcoins, in general, may see a mixed performance, with those showing strong use cases and development activity potentially outperforming the broader market.

Investors should be prepared for potential price swings and keep an eye on any major regulatory developments or macroeconomic news that could affect market sentiment. The coming days will likely be crucial in determining the next directional move for the crypto market.

Risk Management

• Focus on long-term investing first; trade for passive income once you're experienced.

• You can't consistently time the market, which is why many traders fail.

• Generate passive income by trading stocks that hit buy zones.

• Start with long-term investing, then move to multi-day trades, and with experience, options and day trading.

• Always practice risk management: never go all in on a single play, and have funds ready to average down or for other opportunities.

• Be cautious with options trading; understand the risks before diving in.

• Dollar-cost averaging is key: buy in small increments rather than all at once.

• Avoid using margin until you have significant experience, as it can be very risky.

Why Subscribe?

Enjoy your free edition of the Wealth Street Waves newsletter every Sunday! For deeper insights, consider subscribing to our premium version, which unlocks the Waves Playbook—your ultimate guide to mastering the markets. With your subscription, you'll gain exclusive access to:

• 4-6 Stock & Crypto Plays Weekly: Stay ahead with curated opportunities.

• Past Week Macroeconomic Recap: Understand what moved the markets last week.

• Week Ahead Market Review: Get prepared for upcoming market trends.

• Long-Term Investing Guidance: Build and refine your long-term strategy.

• Stock Market Insights: Expert analysis tailored to your investment goals.

• Crypto Market Guidance: Navigate the dynamic world of cryptocurrencies.

• Earnings To Watch: Know which earnings reports could impact your portfolio.

• Crypto Coins To Watch: Spot the digital currencies poised for growth.

Upgrade to unlock these powerful tools and elevate your investing game!

Wealth Street Waves Disclaimer

Nature of Content: Wealth Street Waves and Jaas Industries LLC (hereafter referred to as "the publishers") offer financial information that is based on research and opinion. It's important to understand that we are not registered investment advisors, nor do we offer personalized, tailored investment or legal advice. Accuracy and Reliability: The publishers endeavor to ensure the accuracy of the information provided but cannot guarantee its absolute accuracy or reliability. All content, including statements and expressions, reflects the opinion and research of the authors or paid advertisers and should not be interpreted as financial advice or recommendations to buy or sell any securities or financial instruments mentioned. Investment Decisions: The content provided by the publishers is for informational purposes only and should not be the sole basis for any investment decisions. Investors are encouraged to conduct their own due diligence and consult with a professional financial advisor before making any investment. The opinions expressed are subject to change without notice due to the dynamic nature of financial markets. Forward-Looking Statements: Any projections, market outlooks, or estimates are considered forward-looking statements and inherently involve uncertainties and risks. Such predictions are based on assumptions that may not materialize, and actual events or conditions may differ significantly. No Obligation to Update: The information is presented as of the publication date and may not be updated or revised to reflect new information or future changes. Potential Conflicts of Interest:The publishers, their affiliates, and clients may hold positions in the securities mentioned, which may influence the content. These positions can change at any time without notice, and there is no obligation to disclose such changes. Limitation of Liability: Neither the publishers nor any affiliates shall be liable for any direct or consequential loss arising from the use of the information provided. Users assume full responsibility for any investment decisions made based on this content. Consent and Acceptance: By accessing this site or any related social media accounts, you agree to this disclaimer and our terms of use. Unauthorized reproduction of this newsletter or its contents is strictly prohibited and subject to legal action.