October 3, 2023

TLDR

MARKET RECAP → All three major stock indexes closed lower on Tuesday as strong economic data reignited fears of runaway interest rates (making bonds more attractive relative to stocks). The winning sector of the day? Utilities (XLU) closed in the green despite being one of the biggest losers so far in 2023, down nearly 20% year-to-date.

HOT AUGUST JOB OPENINGS PRESSURE STOCKS → Job openings rose to 9.61 million in August, according to the US Bureau of Labor Statistics (“BLS”) Job Openings and Labor Turnover Summary (“JOLTS”) released Tuesday morning. This data points to a stronger-than-expected labor market, suggesting that the Fed might be pressured to keep rates higher for longer.

BITCOIN-BILLIONARE TO… BANKRUPT → Once touted as the “Jamie Dimon” of crypto, and personally worth north of $25 billion, former FTX CEO Sam Bankman-Fried (“SBF”) now faces seven criminal counts that could land him 100+ years in prison… and the trial started today!

Sean Horgan

Head of Investor Relations @ MoneyLion

$shorgan

Today’s S&P 500 Heatmap

Source: finviz.com

Today’s Top News

HOT AUGUST JOB OPENINGS PUT A DAMPER ON STOCKS

Job openings totaled 9.61 million in August, above the expected 8.8 million and a jump of about 700K from the July number, according to the August JOLTS report released Tuesday morning.

Stocks fell following the report, as the stronger-than-expected jobs number might induce the Federal Reserve to continue to keep interest rates elevated for longer than previously expected (i.e., rate cuts expected to begin in 2024).

This news comes only a few days ahead of the September nonfarm payrolls report on Friday (10/6), which has shown to be similarly impactful to the stock market. Expectations are calling for 170K new jobs added in September on Friday, down from 187K in August.

Source: shutterstock

BITCOIN-BILLIONARE TO… BANKRUPT

Sam Bankman-Fried (“SBF”), the CEO of now-bankrupt crypto exchange FTX headed to court in lower Manhattan on Tuesday to begin his criminal trial for allegedly masterminding one of the biggest financial frauds in U.S. history.

Once lauded as the “Bitcoin Wunderkind” and “The Next Warren Buffet” on the cover of Fortune magazine, SBF now faces seven criminal counts including wire fraud, securities fraud and money laundering … a conviction on all counts could land him 100+ years in prison.

The case, while serious, makes for some captivating revelations (and headlines) in the weeks and months (years?) ahead. So buckle up, and grab your popcorn as you watch crypto history unfold in front of you. Ironically, Bitcoin (BTC) has been on the rise in recent weeks, reaching as much as $28K from the September lows of $25K.