US senators question Meta’s stablecoin plans amid GENIUS Act debate

Key Points

• Cryptocurrency Decline: Major cryptocurrencies, including BTC and ETH, are down due to market uncertainty following an Israeli military attack on Iranian nuclear facilities.**
• Ethereum's Performance: Despite recent volatility, ETH has risen nearly 40% over the past three months, outperforming BTC and the CoinDesk 20 index, signaling potential investor interest in altcoins.**
• Regulatory Moves in Singapore: The Monetary Authority of Singapore (MAS) has mandated licensing for digital token service providers operating overseas from Singapore, leading to closures of exchanges like Bitget and Bybit.**
• Quantum-Safe Wallet Launch: Quranium introduced QSafe Wallet, designed with post-quantum encryption to protect digital assets from future quantum computing threats.**
• Market Movements: BTC dropped 4.7% to $103.3K, ETH fell to $2,694, gold surged 3% to $3,426.95, and Asia-Pacific markets like Nikkei 225 declined amid geopolitical tensions.**

Summary

Asia's markets opened with significant turbulence as major cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH), declined following Israel's airstrikes on Iranian nuclear facilities, heightening geopolitical tensions. BTC fell 4.7% to $103.3K, while ETH dropped to $2,694, despite a 40% gain over the past three months, outpacing BTC and the CoinDesk 20 index. Analysts see ETH's performance as a bellwether for altcoin investment appetite, supported by over $1.25 billion in spot ETH ETF inflows since mid-May. Meanwhile, the Monetary Authority of Singapore (MAS) enforced stricter regulations, requiring licensing for crypto firms operating overseas from the city-state, prompting closures of exchanges like Bitget. On the innovation front, Quranium launched QSafe Wallet, a quantum-secure crypto wallet to counter future quantum computing threats. Market movements also saw gold surge 3% to $3,426.95 amid Middle East tensions, while Asia-Pacific indices like the Nikkei 225 fell over 1%. In contrast, the S&P 500 gained 0.38%, buoyed by tech sector strength. These developments reflect a complex interplay of geopolitical risks, regulatory shifts, and technological advancements shaping global markets.

Key Points

• Initial jobless claims remained at 248,000 for the week ending June 7, unchanged from the prior week and above economists' expectations of 242,000.
• Continuing claims rose to 1.956 million, the highest since November 2021, indicating longer periods of unemployment for those out of work.
• Recent labor market data shows signs of cooling, with May nonfarm payrolls at 139,000, down from April, and private sector job growth at a two-year low.
• The slowing labor market and cooling inflation have increased speculation about potential Federal Reserve interest rate cuts, with a 25% chance by July.
• Analysts warn of potential policy mistakes by the Fed if inflation trends do not align with expectations, given the current economic uncertainty.

Summary

The latest Department of Labor data reveals a cooling US labor market, with initial jobless claims holding steady at 248,000 for the week ending June 7, surpassing economists' forecasts of 242,000. Continuing claims climbed to 1.956 million, the highest since November 2021, suggesting that unemployed individuals are struggling to find new jobs. This data aligns with other indicators of a slowing labor market, including May's nonfarm payrolls of 139,000, a decline from April, and the lowest private sector job growth in over two years at 37,000, per ADP data. Revisions also showed fewer jobs added in prior months than initially reported. Amidst cooling inflation, these labor trends have fueled discussions on Federal Reserve interest rate cuts, with traders now estimating a 25% chance of a cut by July, up from 19% previously. Economists like Neil Dutta from Renaissance Macro highlight rising continuing claims as a sign of increasing unemployment and declining hiring rates, even if layoffs remain stable. Dutta also cautions that the Fed's wait-and-see approach could lead to significant policy errors if inflation does not behave as anticipated, underscoring the high uncertainty in the current economic landscape.

Key Points

• Boeing stock (BA) dropped nearly 8% in premarket trading after an Air India Boeing 787-8 Dreamliner crashed near Ahmedabad airport, carrying 242 people.
• This is the first major crash involving a Boeing 787 Dreamliner since its introduction in 2011, with over 200 bodies recovered from the site.
• Boeing expressed support for Air India and extended thoughts to those affected by the tragedy.
• The crash adds to Boeing's challenges, despite a 20% year-to-date stock rise under new CEO Kelly Ortberg, following a tumultuous 2024 with safety and production issues.
• Shares of Boeing suppliers like GE Aerospace and Spirit AeroSystems also fell in premarket trading, by 4% and 3% respectively.

Summary

Boeing's stock (BA) fell nearly 8% in premarket trading after an Air India Boeing 787-8 Dreamliner crashed shortly after takeoff near Ahmedabad airport, carrying 242 people. The flight, headed to Gatwick Airport in London, marks the first major crash of a Dreamliner since its 2011 debut. Over 200 bodies have been recovered, with survival unclear. Boeing issued a statement supporting Air India and expressing condolences. This incident is a significant setback for Boeing, which has been recovering under new CEO Kelly Ortberg with a 20% year-to-date stock increase, despite a challenging 2024 following a "door plug" incident on an Alaska Airlines flight that led to lawsuits, investigations, and a leadership overhaul. The company also faced scrutiny after fatal 737 Max 8 crashes in 2018 and 2019, exposing software flaws and resulting in a global grounding. The Ahmedabad crash further impacts Boeing's reputation, with shares of suppliers like GE Aerospace and Spirit AeroSystems also declining in premarket trading by 4% and 3%, respectively.