The main reason behind this drop is the sharp increase in the forecast for AI and data center spending by 7.4%, hitting $125-145 billion annually.
Investors are expressing concerns that these investments might not pay off, as Meta hasn't laid out a clear plan for monetizing its AI products.
Additionally, today Meta is kicking off a bond issuance ranging from $20 to $25 billion.
The US stock market lost $400 billion at the start of the trading session. It's worth noting that Meta accounts for about 2.4% of the market cap of the S&P 500 index.
💵 The dollar continued to dip, UST yields rose after the GDP and spending data
📊 Quotes at 15:33 MSK
DXY Index: 98.452 (–0.41%)
📉 Futures on indices (partially lost gains): • Dow: +0.64% • S&P 500: +0.48% • Nasdaq 100: +0.67%
📈 10-year UST yield: 4.4037% (was 4.3937% before the data)
📊 US macro stats (today): • Q1 GDP: +2.0% (as expected) • Personal spending in March: +0.9% (matched the forecast)
🌍 Currencies: • EUR/USD: $1.17 (+0.15%). Before the data release, it was up 0.22% (ECB kept rates steady) • USD/JPY: 156.73 (+2.28% against the yen) — could show the highest gain since late 2022
📈 European indices: • STOXX 600: +0.94% • DAX: +0.91% • Yield on 10-year German bonds: 3.061%
The dollar is weakening against neutral data and the Fed/ECB's rate maintenance. The yen is strengthening sharply (possibly a reaction to intervention or a shift in expectations from the Bank of Japan). Oil is correcting, gold is rising on dollar weakness and geopolitical tensions. Markets remain sensitive to any signals regarding Iran and central bank actions.
💵 The dollar continued to dip, UST yields rose after the GDP and spending data
📊 Quotes at 15:33 MSK
DXY Index: 98.452 (–0.41%)
📉 Futures on indices (partially lost gains): • Dow: +0.64% • S&P 500: +0.48% • Nasdaq 100: +0.67%
📈 10-year UST yield: 4.4037% (was 4.3937% before the data)
📊 US macro stats (today): • Q1 GDP: +2.0% (as expected) • Personal spending in March: +0.9% (matched the forecast)
🌍 Currencies: • EUR/USD: $1.17 (+0.15%). Before the data release, it was up 0.22% (ECB kept rates steady) • USD/JPY: 156.73 (+2.28% against the yen) — could show the highest gain since late 2022
📈 European indices: • STOXX 600: +0.94% • DAX: +0.91% • Yield on 10-year German bonds: 3.061%
The dollar is weakening against neutral data and the Fed/ECB's rate maintenance. The yen is strengthening sharply (possibly a reaction to intervention or a shift in expectations from the Bank of Japan). Oil is correcting, gold is rising on dollar weakness and geopolitical tensions. Markets remain sensitive to any signals regarding Iran and central bank actions.
There is a steady trend in the markets. By the end of the month, Bitcoin's price typically corrects, then in the first weeks of the month, it reverses and turns bullish again. This month is no different. For the last few days, there has been a consistent outflow from ETFs — likely because hedge funds were offloading at high rates.
After 8 out of the last 9 FOMC meetings, we've seen a sharp drop in BTC prices. The chances that this time will be different are slim—1 in 9 isn't the kind of odds you want to bet on.
On average, the price drops by 11% within a week following the meeting, which could push us down to around $70K. While the bulls are unlikely to let the structure just collapse, the recent optimism has led to a ton of long positions that are now being liquidated.
Overall, after the meeting, the price typically dips in the first 7 days, and the odds suggest this will happen again.
After 8 out of the last 9 FOMC meetings, we've seen a sharp drop in BTC prices. The odds that this time will be different are extremely slim — 1 in 9 isn't a bet worth placing.
On average, the price drops by 11% within a week following the meeting, which could bring us down to around $70K. While bulls are unlikely to just let the structure collapse, the recent optimism has led to a massive buildup of long positions that are now being liquidated.
Overall, post-meeting, prices typically dip in the first 7 days, and the odds suggest that this will happen again.
Bitcoin 1 hour. We're continuing to move from support, and we need to reach resistance at 77.5k and break through it. If you've noticed, we’ve breached this level twice and almost hit 80k.
$BTC Bitcoin 1h. We're continuing the move from support, we need to reach resistance at 77.5k and break through it. If you noticed, we've breached this level twice and almost hit 80k.