Tuesday's Markets Update (January 14, 2025)

15 Jan 2025 by rate3

On Tuesday, stocks closed mixed, with the S&P and the Dow gaining, while the Nasdaq declined. The PPI report showed slower-than-expected inflation, but investors are awaiting the CPI report for further insights into the Fed's policy path. Small business optimism surged to a 6-year high on Trump's hopes. The dollar remains strong. BTC (97K) and ETH (3.2K) edged up.

Details

Annual core producer inflation remained unchanged at 3.5% in December, below market expectations. This is the highest level since February 2023. 1Y trend: "Up" Annual producer price inflation accelerated to 3.3% in December 2024, the highest level since February 2023. 1Y trend: "Up" (BLS)
The NFIB Small Business Optimism Index surged to 105.1 in December, reaching its highest level in six years. This optimism is driven by improved economic expectations following the election. Small business owners anticipate better economic growth, lower inflation, and favorable business conditions under the new administration. 1Y trend: "Up" (NFIB)

Crypto

BTC's adoption is exceeding the internet and mobile phones, says BlackRock report. The report also underscores BTC’s appeal as a decentralized asset in times of economic uncertainty. BlackRock advocates for its spot BTC ETF, IBIT. (source)

Currencies

The dollar index eased on Tuesday after the PPI report showed weaker-than-expected inflation. The report raised hopes for fewer Fed rate cuts. However, the dollar remains near multi-month highs, supported by expectations of a slower pace of rate cuts this year. The dollar weakened against the pound but strengthened against the yen. 1Y trend: "Up"