The financial markets witnessed a rollercoaster ride during the week of November 11–15, 2024. A standout development was the exceptional rally in cryptocurrencies, signaling renewed investor confidence in decentralized assets. XRP saw an explosive +58.89% surge, fueled by regulatory clarity in the U.S. and expanded adoption by financial institutions. Similarly, Bitcoin (BTC) climbed by +17.34%, while Litecoin (LTC) gained +15.42%, showcasing growing demand across digital asset classes.
Meanwhile, traditional commodities struggled. Gold, represented by SPDR® Gold Shares (GLD), declined by -4.54%, reflecting a shift in investor sentiment from safe-haven assets to equities and risk-on strategies.
Major stock market indices showed mixed performances but leaned toward volatility. The Invesco QQQ Trust (QQQ) dropped by -3.44%, hurt by losses in the technology sector, while SPY and DIA also experienced turbulence, driven by concerns about Federal Reserve interest rate policies and geopolitical headwinds. Small-cap stocks in the Russell 2000 (IWM) had one of the steepest declines, signaling risk aversion among investors focused on growth.
On the sectoral front, financial stocks showed modest strength, with KBWB gaining +1.65% on the back of robust earnings from major banks. However, the healthcare and technology sectors struggled, with SOXX (Semiconductors) down -8.25% and PSCH (SmallCap Healthcare) plummeting -6.60%. This bifurcation highlights investors’ growing concerns about growth and valuations in high-risk areas of the market.
Global markets displayed sharp contrasts this week. In the U.S., heightened volatility underscored investor concerns about the Fed's potential rate hikes, which could further slow economic growth. The Dow Jones Industrial Average (DIA), SPY, and QQQ all posted losses, reflecting ongoing fragility in sentiment.
In Asia, markets struggled significantly, with the iShares MSCI All Country Asia ex Japan ETF (AAXJ) falling -4.13%, and South Korea’s EWY plunging -5.08%, driven by weak Chinese export data and geopolitical tensions. European equities showed relative resilience but still ended the week in the red. The WisdomTree Europe Hedged Equity ETF (HEDJ) declined -0.99%, weighed down by slowing industrial activity and inflationary pressures.
The most noteworthy global trend was the extraordinary performance of cryptocurrencies. XRP surged on the back of favorable legal rulings in the U.S., marking a win for decentralization advocates. Bitcoin’s rally was buoyed by institutional inflows, while Litecoin benefited from increased utility in peer-to-peer payment systems. These trends underscored the growing integration of digital currencies into mainstream financial ecosystems.
Gold’s performance, represented by GLD (-4.54%), reflected waning demand for traditional safe havens as investor appetite shifted toward higher-risk assets like cryptocurrencies and equities. The decline in gold prices also correlated with a strengthening U.S. dollar and rising Treasury yields, further dampening appeal for the precious metal.
The week was characterized by rising volatility in major U.S. ETFs:
The week ending November 15, 2024, highlighted the growing divergence across asset classes and sectors. Cryptocurrencies stood out as the best-performing asset, with XRP and Bitcoin leading the rally. Traditional equities experienced heightened volatility, with financial stocks showing resilience while technology and healthcare suffered steep declines. Globally, Asian and Latin American markets bore the brunt of the downturn, while European equities managed to hold ground better. Commodities such as gold saw significant losses as investors favored riskier assets.