Weekly Market Update

Author : The BlackSummit Team
Date : March 2, 2024

Global Market News

Global equities were mixed

Global equities were mixed this week. The S&P 500 increased 0.95% on the week while the Dow Jones declined 0.11%. On the other hand, the Nasdaq rose 1.74%, fueled by Nvidia’s surge. Though starting the week above 4.30%, the US 10-year Treasury dropped back down to the 4.18% mark by the end of the week. Meanwhile, the price of a barrel of West Texas Intermediate rose this week, closing Friday at $79.81. Volatility, as measured by the CBOE Volatility Index, ended the week at 13.11.

India reports 8.4% GDP growth in Q4

India reported 8.4% GDP growth for the last quarter of 2023, a sharp increase that exceeded analysts expectations. While the Indian economy is certainly growing at a fast clip, the boost in Q4 was due to a surge in government spending and a drop in government subsidies. Nevertheless, India expects a 7.6% growth rate for 2023 which has given a boost to Prime Minister Narendra Modi ahead of national elections this year. International Monetary Fund (IMF) executive director Krishnamurthy Subramanian said India is “easily” the fastest-growing economy in the world.

International Developments

International outcry and renewed ceasefire concerns in Gaza

Israeli troops fired on a crowd of Palestinians in Gaza City during a stampede for food aid, resulting in more than 100 deaths and over 700 injuries. Arab countries condemned the violence in response, and US President Joe Biden expressed concern over its impact on ceasefire negotiations in the Israel-Hamas war. This event comes as aid groups struggle to deliver supplies due to military coordination difficulties, hostilities, and public order breakdown, with a quarter of Gaza’s 2.3 million facing starvation. Over 30,000 Palestinians have been killed since October, mostly women and children. Additionally, Palestinian Prime Minister Mohammad Shtayyeh recently resigned, highlighting a symbolic shift as President Mahmoud Abbas seeks to maintain leadership amidst calls for Palestinian statehood.

Putin’s nuclear warning to the West

President Vladimir Putin escalated his warnings to the West, warning of nuclear conflict if they intervened more directly in Ukraine. In his state-of-the-nation speech, he emphasized Russia’s upcoming presidential elections, his crackdown on opposition, and a desire for arms control talks with the United States, specifically with conditions favoring Russia. This admonishment coincided with Hungary’s Parliament voting to accept Sweden as a new NATO member, marking a significant shift influenced by the Ukraine war. Prime Minister Viktor Orban, initially hesitant, allowed the vote after a visit by Sweden’s prime minister. Once finalized, Sweden’s NATO membership will strengthen NATO in the Baltic Sea and challenge Russia’s regional dominance.

Ensuring security on Haiti’s path to elections

Haitian Prime Minister Ariel Henry has committed to organizing general elections by mid-2025, with backing from the CARICOM trade bloc, which stressed the importance of cooperation from all involved parties. The US, Canada, and the United Nations will collaborate to evaluate Haiti’s readiness for elections, considering the ongoing security, humanitarian, and political challenges. In response to these issues, a multinational armed force, under Kenya’s leadership, has been established to assist Haiti’s government in combating violent gangs and vigilante violence. The mission’s primary objective is to restore law and order, aligning with effective humanitarian intervention strategies. With leadership from an African state and support from Caribbean nations, the mission aims to avoid accusations of colonial interference.

US Social & Political Developments

Biden and Trump make opposing border visits

President Biden and former President Trump recently made opposing visits to the Texas US-Mexico border, highlighting their differing approaches to border policies and pointing fingers at each other’s parties for the ongoing migrant crisis. President Biden, who supports a bipartisan deal that has been blocked by Republicans, called for action and increased funding for border security. In contrast, Trump labeled the situation a “Joe Biden invasion,” linking migrants to criminal activity. Immigration has emerged as a key concern for voters, prompting Democrats to blame Republicans for the failure of Senate deals. Both candidates are calling for stricter policies, representing a significant departure from Biden’s 2020 position. Meanwhile, legal disputes between Texas and the federal government over border control persist, underscoring the issue’s complexity.

Last minute deal averts shutdown

The Senate, led by Democrats, passed a short-term spending bill to prevent a government shutdown, supported by the Republican-led House. President Biden is expected to sign the bill, setting deadlines for funding government parts by March 8th and 22th. While Biden praised the bill, he emphasized the need for a long-term solution. House Speaker Mike Johnson’s strategic move, relying on Democrats to pass the bill, could strain relationships with conservatives. The bill buys time for Congress to agree on full fiscal year funding and may pave the way for aid to Ukraine, Israel, and Indo-Pacific allies.

Corporate/Sector News

India approves three semiconductor plants with over $15 billion in investments

India is investing heavily in building its own domestic chip manufacturing industry with the approval of three new semiconductor plants, with investments totaling over $15 billion. This project aims to make India a major chip producer as it partners with foreign companies and focuses on mature technologies for automobiles, consumer electronics, and other sectors. The initiative is expected to create tens of thousands of jobs and establish a strong domestic semiconductor ecosystem.

EV developments

In the electric vehicle (EV) world, the US Commerce Department is beginning an investigation into Chinese EV imports which may pose a threat to national security. The Commerce Department says that the probe is due to the amount of information the vehicles collect on driver, passengers, and US infrastructure. In the corporate world, it seems that Apple has canceled their decade-long effort to build an EV. The project, known as “Project Titan,” has been shelved and the employees working on it have reportedly been moved to the company’s artificial intelligence (AI) division.

Bitcoin reaches $60,000

Bitcoin surged to $60,000, its highest level in over two years, and is on track for its best monthly gain since December 2020. The rally has been driven by investment in new Bitcoin ETFs and anticipation of a a process designed to slow the cryptocurrency’s release in April. This rally comes amid expectations of Federal Reserve interest rate cuts, which could increase demand for more volatile assets like Bitcoin. Bitcoin’s value in circulation has surpassed $2 trillion, and the price of the token has doubled in just four months.

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