✂️ The rate cut

and Tesla's changing

Good morning investors! We’re back after a break and things have changed, let’s have a look.

Today we cover:

  • The rate cut

  • Tesla’s changing

  • Crypto goes down

📊 Economy and News 

Fed isn’t ready to cut rates

Federal Reserve officials at their June meeting indicated that inflation is moving in the right direction but not quickly enough for them to lower interest rates, minutes released Wednesday showed.

The Federal Reserve aims to keep annual inflation at 2%, a goal it has exceeded since early 2021.

During their recent meeting, participants stressed that they wouldn't consider lowering the target range for the federal funds rate until they had more evidence that inflation was steadily moving towards their 2% objective.

Policymakers also shared updates on economic forecasts and monetary policy for the next few years.

The FOMC's "dot plot" now suggests a single quarter percentage point cut by the end of 2024, down from the three cuts anticipated in the previous update from March. Despite this, futures markets are still pricing in two rate cuts starting in September.

The committee largely maintained its economic projections but did lower inflation expectations for this year.

There were some disagreements on how to approach monetary policy. Some members emphasized the need for tighter controls if inflation persists, while others argued for readiness to act if the economy weakens or the job market deteriorates.

The summary also noted that a "vast majority" of members expect economic growth to "gradually cool" and described current policy as "restrictive," a key term as they balance bringing down inflation without causing undue economic harm.

Global hits:

Today’s job report: With indications that the labor market might be slowing down, if not facing more serious issues, the June nonfarm payrolls report has become particularly important.

Scheduled for release on Friday at 8:30 a.m. ET, the report is expected to show job growth of 200,000, a decrease from the 272,000 reported in May.

Although there are few data points suggesting an imminent recession, the trend in unemployment is starting to draw attention.

📈 Stocks

S&P 500 5,537.02 (+0.51%)
DJIA 39,308.00 (-0.061%)
NASDAQ 18,188.30 (+0.88%)
BRENT CRUDE 87.83 (-0.07%)
* Prices as of Jul 5th, 12:20 AM UTC

Tesla’s wild run is making people make and lose money

With shares surging 17% in the two trading days since the deliveries report, short sellers have taken a significant hit, losing an estimated $3.5 billion based on mark-to-market data from S3 Partners.

The past few months have been tough for short sellers as Tesla's shares have skyrocketed 73% since hitting a low for the year in April. After closing at $246.39 in Wednesday’s shortened trading session, the stock is just over $2 away from erasing its losses for the year.

Currently, short interest in Tesla stands at 3.5% of its float, with 97 million shares shorted, amounting to a notional value of $22.4 billion.

On Tuesday, Tesla reported second-quarter deliveries of 443,956, surpassing Wall Street's estimate of 439,000. Although deliveries fell 4.8% from the previous year, this decline was less severe than the 8.5% year-over-year drop in the first quarter.

Also, Tesla Cybertruck might have become the best-selling electric pickup truck in the US.

🔐 Crypto

Bitcoin $54,379 (-4.66%)
Ethereum $2,869 (-6.18%)
Total market cap $1.98 (-6.73%)
* Prices as of Jul 5th, 12:20 AM UTC

Bitcoin slides to five-month low

Bitcoin’s price slumped to around $54,000 apiece Thursday, hitting a five-month low after the U.S. Federal Reserve released minutes from its June meeting.

Altogether, the entire cryptocurrency market has shed more than $170 billion in combined market capitalization in the last 24 hours.

The token stormed to an all-time high of above $70,000 in March this year after the approval of the first U.S. spot bitcoin ETF, however it’s since been trading within a tight range.

Other major currencies like Ether and Ripple were also down after the trustee for the Mt. Gox bankruptcy estate said it had begun making repayments in bitcoin and bitcoin cash to some of the creditors through designated crypto exchanges.

💵 Personal Finance

Make Money Online – Last Part

Finally, it’s the end of one of our highest rates series. If you’ve missed it, then check previous issues for some great ways to make money online.

Here are a few more ideas:

  • Want to know how to earn money from home? Be a day trader and test your luck. It’s very risky and you may end up losing a large portion of your income so be careful.

  • You will never make money if you do not ask for it, hence consider requesting a raise. This is the best way to make more money without working more. Most companies offer raises once or twice a month but if you feel you’re being underpaid then you can request them to reconsider.

  • Use your vehicle to make money by advertising on it. Businesses pay up to $1,000 per month for such services.

  • Take on a part-time job to make money. You can work at a grocery store, nearby restaurant, or institution to earn extra money while keeping your full-time job. It can be hard to manage two jobs, which is why only about 5% of workers today hold multiple jobs, but it can be an effective way to make money.

This is all that you need to know about making money online. While it’s important to earn more, remember that it will not be enough unless you learn to control your expenses.

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💰 Be a Better Investor

“The grand essentials to happiness in this life are something to do, something to love, and something to hope for.”

‘Ikigai

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👩🏽‍⚖️ Legal Stuff
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