US Stocks Near Records, Weak ISM PMI, and Bitcoin ETF Flows Surge: PALvatar Market Recap, January 06 2025 - Real Vision Daily Briefing Recap
Podcast: Real Vision Daily Briefing
Published: 2026-01-06
Duration: 5 minutes
Summary
US stocks continue to climb with the Dow nearing 50,000, despite weak ISM manufacturing data. Bitcoin ETFs see major inflows, driven by increased competition and strong crypto performance.
What Happened
US stocks experienced a quiet start, following a strong rally that saw the Dow Jones Industrial Average reach a new high, largely driven by energy stocks. The Dow is approaching the 50,000 mark. However, the ISM manufacturing PMI data was disappointing, indicating contraction for the 10th consecutive month with a December reading of 47.9, the lowest in 14 months.
The dollar, which had previously reached a four-week high, lost its gains following the weak ISM data. Market attention is now focused on the upcoming jobs report, which could provide further direction for investors. Despite these challenges, European stocks continued their upward trajectory, with the FTSE 100 hitting an all-time high.
In Europe, the final composite PMI for December was 51.5, down from November's 30-month high but still in expansion territory. This suggests resilient growth in the Eurozone's private sector, despite a slowdown in manufacturing. Inflation in France and Germany was lower than expected, impacting bond yields.
Asian markets remained strong despite indications of potential interest rate hikes in Japan. Commodities saw significant gains, with copper reaching an all-time high. Precious metals such as gold, platinum, and silver also rose in value.
Cryptocurrencies continued their positive start to the year, with Bitcoin reaching $94,700 before pulling back. Bitcoin ETFs had a significant inflow of nearly $700 million, marking their best day since early October. Morgan Stanley's application to launch its own Bitcoin ETF indicates growing competition in this market.
In the altcoin sector, XRP and SUI stood out with double-digit gains. XRP spot ETFs surpassed $1 billion in cumulative inflows within two months of their launch. SUI's growth was bolstered by its developer, Misten Labs, announcing new privacy features.
Key Insights
- The Dow Jones Industrial Average is approaching the 50,000 mark, driven primarily by a strong performance in energy stocks, despite a quiet start to the year.
- The ISM manufacturing PMI for December recorded a contraction at 47.9, marking the 10th consecutive month of decline and the lowest reading in 14 months.
- Bitcoin ETFs experienced a significant inflow of nearly $700 million, marking their best day since early October, as Bitcoin reached $94,700 before pulling back.
- XRP spot ETFs surpassed $1 billion in cumulative inflows within two months of their launch, highlighting strong investor interest in the altcoin sector.