Market review from UTEX — week 39

Major U.S. indices closed last week mixed. The SPY lost 0.34%, while the Nasdaq gained 0.92%.

As usual, the technology sector led the gains: CrowdStrike (+14%), Palo Alto Networks (+9%), SanDisk (+9%), Advanced Micro Devices (+8%). Top decliners included Goldman Sachs (-8%), Bank of America (-7%), Netflix (-7%), and IBM (-5%).

The Fed raised interest rates by 25 basis points, and Kevin Warsh's hawkish remarks at the press conference reflected his stance. According to CME FedWatch, the probability of another hike at the October 28 meeting is now 53%.

On Tuesday, the CLARITY Act, a crypto regulation bill, failed to secure the 60 votes needed in the Senate to advance to the next stage. Bitcoin initially dropped on the news to nearly $75,000 but then unexpectedly rebounded easily and settled above $80,000.

Coinbase CEO Brian Armstrong stated that the industry can no longer wait for Congress. He urged the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to use their existing tools to create clear rules. Already on Thursday, the SEC approved an "innovation exemption" for blockchain platforms, allowing them to trade tokenized U.S. stocks without registering as exchanges. The next day, the CFTC sent a draft of new rules for crypto transactions and markets to the White House.

This week, five Fed officials are scheduled to speak, and the market will be looking for hints on whether another hike before year-end is inevitable.

On Wednesday, Mark Zuckerberg will speak at the annual Meta Connect conference, where he may discuss Meta's AI strategy and unveil smart glasses without a camera.

There will be few earnings reports, but notable ones include AutoZone, Cintas, Paychex, General Mills, Costco, Darden Restaurants, TD SYNNEX, Thor Industries, and KB Home.

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