The double holiday has ended, and the US stock indices are warming up as the market opens. On Friday, the Nasdaq rose by 1.3%, the S&P 500 increased by 0.9%, and the Dow Jones gained 0.56%.
A key factor in the Federal Reserve's decision to continue shrinking its balance sheet is that the reserves in the US banking system have fallen below $3 trillion to $2.89 trillion. Wall Street strategists believe that the Fed's minimum comfortable reserve level is between $3 trillion and $3.25 trillion. A survey by the New York Fed shows that two-thirds of respondents expect the halt in balance sheet reduction (QT) to end in the first or second quarter of 2025.
I think it's important to understand the reasons for the decline. The Dow has fallen for five consecutive weeks due to the CEO of UnitedHealth being shot, and UnitedHealth is a significant component of the Dow. In fact, it hasn't dropped much, only 5%, just a lever washing.
Tesla's decline is due to a special forces person igniting a Tesla Cybertruck in front of Trump Tower.
Anyway, this world is quite magical.
Bitcoin and Ethereum are steadily rising 📈