Global Macro Monitor

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Financial conditions in the United States, as measured by the Chicago Fed’s National Financial Conditions Index (NFCI), have reached their most accommodative levels since November 2021—a period when the Federal Reserve’s policy rate stood at zero and quantitative easing was at its peak (refer to the commodities table). This shift coincides with notable market movements: gold and Bitcoin surged this week, and expectations for future rate cuts are gradually being priced out.

Of particular interest, Tesla posted a 10% rally (see Equity ETF & Magnificent 7 table), fueling what some might characterize as a “Crony Capitalism” trade. These developments underscore the dynamic interplay between easing financial conditions and market sentiment. Further shifts are anticipated—stay tuned for additional analysis.

A key gauge of euro-zone wages jumped by the most since the common currency was introduced in 1999 — complicating the European Central Bank’s plans for interest-rate cuts as inflation eases.

Third-quarter negotiated pay rose 5.4% from a year ago, the ECB said Wednesday. That’s up from 3.5% in the previous three months and was largely driven by Germany. – Bloomberg

MICHAEL BECKLEY is Associate Professor of Political Science at Tufts University, Director of the Asia Program at the Foreign Policy Research Institute, and Nonresident Senior Fellow at the American Enterprise Institute. He is the author of Unrivaled: Why America Will Remain the World’s Sole Superpowerand a co-author, with Hal Brands, of Danger Zone: The Coming Conflict with China. – Foreign Affairs

Must view, folks.

UPS and FedEx have long been some of the biggest names in America’s expansive and ongoing parcel wars, having been founded in 1907 and 1971, respectively. However, they’ve lost some ground in recent years as the industry of getting-stuff-where-it-needs-to-go has become increasingly competitive, thanks primarily to online giant Amazon. That’s forced them to turn to discounts and deals for big and smaller shippers alike. – Sherwood News

In the summer of 1861, as Pony Express riders rode from station to station, they occasionally passed workers building the nation’s longest telegraph line. The telegraph had been around since the 1840s, but it had been used mainly to connect regional cities. The Overland telegraph represented a real changing point in American history by creating the first instantaneous communication between the Atlantic and Pacific coasts. It also meant that there was no longer a need for the Pony Express. When the new transcontinental telegraph wire went live in October 1861, the Pony Express horses stopped running.

Despite operating for less than 19 months, future generations remember the legendary Pony Express as a daring attempt to rethink how Americans communicated. – Wells Fargo