Warren Buffet continues to sell, World War 3 is back, Elon Musk goes Dark Maga
Hello traders, Marcello here, founder of The Day Trading Academy, bringing you the weekly recap of what happened in the markets. We’ve got Warren Buffett selling more stock, a major hurricane in the U.S., and some controversial pandemic-related news. Let’s jump in.
Hurricane Helene and Minimal U.S. Aid
The biggest news of the week comes from Hurricane Helene, which ravaged parts of Western North Carolina and Eastern Tennessee. While the U.S. government recently sent billions overseas for another war, they only offered $750 to those affected by the hurricane. Rumors suggest that government aid has been slow, but I’ll leave you to explore the conspiracy theories online.
Conspiracy Theories and Government Concerns
Speaking of conspiracies, a persecuted FBI specialist is urging Americans to stock up on food and prepare for hardship. He also advises people to arm themselves, noting that dictators in countries like Venezuela, Cuba, and even Nazi Germany disarmed their citizens before gaining control.
Additionally, there are rumors that U.S. lawmakers are preparing for a mass casualty event, with discussions of constitutional amendments to quickly replace members in the event of a national crisis. Earlier this year, congressmen were reportedly given emergency satellite phones—a sign that something big may be on the horizon.
Economic Data: Stocks and Global Markets
Despite the conspiracy talk, U.S. stocks were mostly positive, as were Canada’s markets. European markets, however, were generally lower, with Paris seeing the biggest drop. In Latin America, markets were mixed, with Brazil’s Bovespa down 0.71%. Over in Asia, Hong Kong’s Hang Seng rose over 10%, and China’s Shanghai market was up over 8%.
Crypto and Commodities
Bitcoin and other cryptocurrencies had a rough week, with Bitcoin down 5.68%, closing around $62,124. Meanwhile, global food prices are on the rise again. A personal favorite example: back in 2020, I could get a meal at Five Guys for $20 for two people. Now, that same meal costs $25 for just one person!
Coffee prices are also spiking, with the Arabica bean hitting highs not seen since 2011. U.S. oil prices fell for the third straight month, largely due to rising supplies and China’s economic slowdown. However, the Middle East conflict has caused oil prices to surge in the short term, with U.S. crude up almost 9% to $74.28, and Brent crude up over 8% to $78.05.
Geopolitical Tensions: Middle East and Ukraine
Tensions continue to escalate in the Middle East, with Israel launching a partial land invasion of Lebanon following rocket attacks. Hezbollah, backed by Iran, has responded with missile strikes. On the Ukraine front, Russia captured another city after a two-year standoff, suggesting the war isn’t ending anytime soon.
Gold and Silver Surge
Gold prices surged 6% in September, reaching multiple record highs and marking the best quarter in eight years. Year-to-date, gold is up 29%, while silver has risen by over 34%. For the week, gold dipped slightly by 0.17%, while silver increased by 1.70%.
Corporate News: Buffett Sells More Stock
Berkshire Hathaway continues to sell off Bank of America stock. Warren Buffett sold 8.5 million shares, totaling $338 million, bringing his total sales to over $9 billion. It makes you wonder—why is one of the most successful investors in history selling so much stock in a major U.S. bank?
Other Economic News
Japan’s industrial production dropped 4.9% year-over-year, although retail sales rose by 2.8%. The U.S. jobs report showed 254,000 jobs were added in September, but many of these were government positions, raising concerns about the expanding bureaucracy.
In Europe, manufacturing activity in the Eurozone declined at its fastest pace since September, with Germany, a global manufacturing powerhouse, seeing its sector contract sharply.
Political News: France and Mexico
Marine Le Pen, seen as the frontrunner in France’s 2027 presidential election, is facing criminal charges over allegedly misusing election funds. On the other side of the world, Claudia Sheinbaum became the first female president of Mexico, though her presidency has sparked opposition regarding judicial reforms introduced by the previous president.
Corporate Updates: Chipotle, Apple, and More
In California, Chipotle has started replacing workers with robots to bypass new minimum wage laws. Apple’s latest iPhone 16 has seen weaker demand compared to the iPhone 15, with sales down 13%.
Gilead Sciences recalled its antiviral drug Remdesivir after a 53% mortality rate in African clinical trials. And in tech news, Nvidia stock rose 3% as they reported high demand for their new AI chip, “Blackwall,” which will begin shipping in the fourth quarter.
Final Thoughts
That’s all for this week. If you have any questions, feel free to reach out. Don’t forget to subscribe, and remember—the preppers were right.
