Weekly financial markets roundup: September 30 – October 4, 2024

This week’s market action was shaped by global geopolitical tensions and a stable U.S. labor market. The dollar ($EURUSD) surged to its highest weekly gain since April amid safe-haven demand, while oil prices ($BRNUSD, $WTIUSD) rallied on concerns over potential disruptions in Middle East supply chains.

Meanwhile, Nvidia ($NVDA) saw its stock jump 5% as the company reported “insane” demand for its next-gen chips. In contrast, the Dow ($DJIUSD) led losses on Wall Street as investors braced for the upcoming jobs report. Bitcoin miners also faced a tough month, with revenue hitting a yearly low.

Catch the full rundown of these developments and more in our latest report!

Dollar eyes biggest weekly gain since April amid market jitters 💵

The dollar ($EURUSD) is on track for its largest weekly surge since April, driven by safe-haven demand amid escalating Middle East tensions and a stable U.S. labor market.

Recent data showed a slight uptick in unemployment claims, signaling a steady labor environment. Economists expect the upcoming non-farm payrolls report to show 140,000 new jobs, with the unemployment rate holding at 4.2%. This could further reinforce the Federal Reserve’s position on interest rates.

The dollar index, which measures the greenback against six major currencies, is up 1.5% this week, reaching a six-week high of 102.09, reflecting investor confidence in the U.S. economy despite global uncertainties.

Oil at $100 a barrel? Traders hedge amid Middle East tensions 🛢️

Oil prices ($BRNUSD, $WTIUSD) surged following President Biden's comments on potential Israeli strikes on Iran’s oil facilities, fueling market fears of a supply disruption.

TP ICAP energy analyst Scott Shelton noted increased buying of $100 oil call options, suggesting traders are hedging against a potential price spike. While options activity hit record levels, Shelton emphasized it’s more about managing risks than expecting prices to actually reach $100 per barrel.

Shelton pointed out that there’s ample spare capacity, with Saudi Arabia holding around 3 million barrels and the UAE and Iran each contributing 1.5 million barrels daily, making $100 oil more of a fear-driven possibility rather than an imminent scenario.

Nvidia stock surges as CEO highlights 'Insane' chip demand 💹

Nvidia ($NVDA) shares rose by 5% after CEO Jensen Huang reported "insane" demand for the company’s next-gen Blackwell chips. Despite minor design delays, Huang assured that the chips are now in full production, fueling investor optimism and driving the stock higher.

But investors and analysts alike remain largely confident in the trajectory of the artificial intelligence trade. Nvidia's stock is still up about 170% over the last 12 months and more than 2,700% over the last five years. Year to date, Nvidia has gained around 150%.

Dow leads losses as investors await jobs report 🔻

Stocks slipped as the Dow ($DJIUSD) dropped 0.4%, leading Thursday’s declines ahead of the September jobs report. Concerns over Middle East tensions pushed oil prices higher for the third straight day, while the S&P 500 fell 0.2% and the Nasdaq closed slightly lower. Wall Street is closely watching the upcoming labor data amid signs of a softening job market.

Bitcoin miners’ revenue drops to yearly low in September 📉

In September, Bitcoin miners generated a total revenue of $815.7 million, marking the lowest level since the start of the year, according to data from The Block.

Transaction fees accounted for just $13.86 million, the lowest since the introduction of the BRC-20 standard in March 2023.

On September 11, mining difficulty hit an all-time high of 63.67 T. However, in the subsequent adjustment two weeks later, it dropped by 4.6% to 88.4 T.

Coupled with Bitcoin’s price ($BTCUSD) recovery to around $66,000, this contributed to a rise in hashprice to approximately $48 per PH/s per day, according to Hashrate Index.

Summary 📊

Next week, all eyes will be on the US CPI release and several other events that could drive significant market movements. 

Don’t miss out on these dynamic shifts — trade top assets under favorable conditions with nomo and stay ahead! You can also explore our blog, economic calendar, and educational materials to enhance your trading experience.