Cheap rides and bad loans. The car market is becoming more favourable for buyers as inventory levels rise and incentives increase. New car prices are barely rising with inflation, and used car prices are falling from their 2022 highs. Analysts expect a further price decline for both new and used vehicles in the coming months due to oversupply. However, auto loan delinquencies are also rising, reaching over 7% for new cars, with more expected in the coming month as student loan repayments resume. Buyers are advised to pause car purchases in the near future as prices are expected to be lower. Overall, the car market appears to be shifting to benefit consumers, but buyers still need to watch their budgets when taking out auto loans.
EQUITY
The major U.S. stock indexes ended mixed on Monday, with the Nasdaq and S&P 500 closing higher, led by semiconductor and tech stocks like Nvidia, although Powell's signal of a higher neutral rate ahead of Jackson Hole sent bond yields to 2007 highs as markets braced for a more hawkish Fed policy path.
GOLD
Gold prices rose slightly on Tuesday as the dollar weakened but remain under pressure as Treasury yields surge ahead of a key speech by Fed Chair Powell on Friday, which could signal higher interest rates. The reason to hold any gold in this environment, however, continues to decline as some investors suggest short-term bonds as a "no brainer".
OIL
Oil prices edged lower on Tuesday as the potential resumption of Iraqi exports and weak Chinese economic data dampened the supply tightness and demand outlook. Analysts warned that China's slowing economy and commitment to avoiding stimulus would limit oil prices this year.
CURRENCY
The US dollar backed off a bit from its recent rally as traders held their breath ahead of the Fed's Jackson Hole meeting, which could offer clues about future rate hikes. China's yuan rebounded after state banks stepped in to prop it up, though economic worries still loom large there. Other major currencies like the yen and Aussie dollar also caught a lift but remain stuck near lows as the possibility of more Fed tightening keeps the dollar's appeal strong.