News
BofA Predicts Market Gains with Focus on Bonds, Gold, and Undervalued Stocks
Bank of America strategists, led by Michael Hartnett, are advising investors to adopt a bullish stance on bonds, gold, and undervalued stocks in anticipation of a Federal Reserve interest rate cut, a potential victory for Donald Trump in the upcoming election, and a soft landing for the U.S. economy. They suggest that proposed tariffs could be deflationary, and the bond market is already pricing in rate cuts amid concerns about inflation and a weakening labor market. Recent data shows significant inflows into gold and bonds, while the S&P 500 and small-cap stocks have also seen gains this year, indicating a positive sentiment in the market.
Silver Market Teeters on Edge as Volatility Drops Prices
The silver market experienced significant volatility and a sharp decline this week, approaching a critical support level at $28.50. This area, previously a strong resistance point, may trigger a bounce. However, a break below $28 could lead to further drops. Silver's price is influenced by factors such as the US dollar, interest rates, and overall risk appetite. The market appears to be at a crucial juncture, with potential for either a rebound towards $30 or a continued decline to $26, depending on how it responds to the current support level.
Global IT Outage Causes Financial Chaos and Delays
A widespread technology outage caused by a malfunction in a routine software update from cybersecurity firm CrowdStrike disrupted airlines, banks, hospitals, and emergency services globally. Thousands of Microsoft users were knocked offline, stranding airport travelers, delaying hospital appointments, and interrupting live news broadcasts. Major airlines such as Delta, United, and American Airlines grounded all flights, and 911 phone lines in states like Alaska and Ohio were down. CrowdStrike confirmed it was not a cyberattack but a software glitch, and a fix has been sent to customers. Mac and Linux users were unaffected.
Global Business Grinds to Halt as CrowdStrike Update Triggers Massive IT Meltdown
A widespread IT outage, potentially the largest in history, disrupted global businesses on Friday, affecting financial services, healthcare, broadcasting, and air travel. The issue stemmed from a defect in CrowdStrike's latest update for Windows systems, which the company is actively addressing. While not a cyberattack, the outage coincided with separate issues in Microsoft's cloud services, causing significant disruptions and impacting CrowdStrike's stock price.
Gold plummets to near $2,400 as profit-booking kicks in, US Dollar advances
Gold prices have fallen to near $2,400, extending a three-day losing streak after hitting all-time highs above $2,480. This decline is attributed to profit-taking, a recovery in the US Dollar, and rising bond yields. Political uncertainty in the US, with speculation about President Biden possibly not running for re-election and an assassination attempt on Donald Trump, has boosted the US Dollar's appeal. Market expectations for the Federal Reserve to reduce interest rates in September remain strong, influenced by recent inflation data and cooling labor market conditions. The US Dollar Index has rebounded to near 104.30, further pressuring gold prices.