Record Money Funds: Wall Street Breathes Caution
Money funds have reached an all-time high of $6.24 trillion in assets, evidencing investor caution in the face of an uncertain economic environment. Despite recommendations to rotate into longer duration bonds due to impending interest rate cuts by the Federal Reserve, many investors and companies are keeping their capital in money market funds for safety, with 60% of this capital coming from corporate treasuries that avoid investing in capex due to uncertainty.
In the US, the market is closely following the release of second quarter GDP, a crucial piece of data that could directly impact the performance of the S&P 500, which has recently shown volatility. Losses on Wall Street continue, with the S&P 500 closing the last session down 0.6%, reflecting the uncertainty dominating the market. The current highs are at 5,672.72 points, while the most recent price closed at 5,581.63 points. The checkpoint is at 5,473.73 points, and the relative strength index (RSI) indicates slight overbought at 56.51%. Today, jobless claims data and statements from FOMC members are expected, which could influence investors' expectations and the future direction of the S&P 500. If the index manages to please investors we could see a further piercing of the current high, if this does not happen it is possible that the price will fall back to the POC zone which coincides with the range that has formed since early June.
Meanwhile, in Europe, the Eurogroup will meet to assess the continent's economic situation, and any statement could alter the perception of economic stability. Meanwhile, cryptocurrencies remain highly volatile, and gold and coffee futures continue to move noticeably. This overall picture keeps investors in a defensive posture, seeking safe havens while closely watching every piece of economic and financial data that could influence global markets. With the previous day's positive closing of the main European markets the CAC40, DAX, IBEX35, FTSE MIB and EUROSTOXX50 except for the FTSE 100 which closed with losses.
Ion Jauregui - ActivTrades Analyst
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
In the US, the market is closely following the release of second quarter GDP, a crucial piece of data that could directly impact the performance of the S&P 500, which has recently shown volatility. Losses on Wall Street continue, with the S&P 500 closing the last session down 0.6%, reflecting the uncertainty dominating the market. The current highs are at 5,672.72 points, while the most recent price closed at 5,581.63 points. The checkpoint is at 5,473.73 points, and the relative strength index (RSI) indicates slight overbought at 56.51%. Today, jobless claims data and statements from FOMC members are expected, which could influence investors' expectations and the future direction of the S&P 500. If the index manages to please investors we could see a further piercing of the current high, if this does not happen it is possible that the price will fall back to the POC zone which coincides with the range that has formed since early June.
Meanwhile, in Europe, the Eurogroup will meet to assess the continent's economic situation, and any statement could alter the perception of economic stability. Meanwhile, cryptocurrencies remain highly volatile, and gold and coffee futures continue to move noticeably. This overall picture keeps investors in a defensive posture, seeking safe havens while closely watching every piece of economic and financial data that could influence global markets. With the previous day's positive closing of the main European markets the CAC40, DAX, IBEX35, FTSE MIB and EUROSTOXX50 except for the FTSE 100 which closed with losses.
Ion Jauregui - ActivTrades Analyst
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.