The Strange Story of Transparent Mice
September lived up to its reputation as a volatile month for investors. Last week, major U.S. stock indices declined, bond prices rose, and new economic data created uncertainty around the Federal Reserve’s next move on interest rates.
Since 1928, September has produced the weakest average monthly returns for the S&P 500, historically declining by 1.2% on average, according to Dow Jones Market Data. That pattern seemed to hold again last week.
S&P 500, Dow Jones Global ex-US, Gold, Bloomberg Commodity Index returns exclude reinvested dividends (gold does not pay a dividend) and the three-, five-, and 10-year returns are annualized; and the 10-year Treasury Note is simply the yield at the close of the day on each of the historical time periods.
Sources: Yahoo! Finance; MarketWatch; djindexes.com; U.S. Treasury; London Bullion Market Association.
Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not applicable.
S&P 500, Dow Jones Global ex-US, Gold, Bloomberg Commodity Index returns exclude reinvested dividends (gold does not pay a dividend) and the three-, five-, and 10-year returns are annualized; and the 10-year Treasury Note is simply the yield at the close of the day on each of the historical time periods.
Sources: Yahoo! Finance; MarketWatch; djindexes.com; U.S. Treasury; London Bullion Market Association.
Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not applicable.
Jobs Report Sends Mixed Signals
The August employment report revealed that:
- 142,000 jobs were added
- Average hourly earnings rose 3.8% year over year
- Unemployment edged down to 4.2%
While the numbers looked solid, they fell short of forecasts. Revisions to previous months also pointed to a cooling labor market. As a result, some analysts now believe the Fed may introduce a larger rate cut than previously expected at its next policy meeting.
Federal Reserve Governor Christopher Waller supported the idea of cutting rates and indicated he remains “open-minded about the size and pace of those reductions,” according to Reuters.
Investor Sentiment Shifts Toward Neutral
Recent weeks have seen investors feeling optimistic. The AAII Sentiment Survey showed that more than 50% of respondents expected markets to rise over the next six months—a figure close to the survey’s all-time high.
That changed last week. Bullish sentiment faded. Bearish sentiment declined, too. The majority of participants now expect markets to stay relatively flat in the short term.
Bonds Rally as Yields Decline
The shift in sentiment impacted fixed income markets. Treasury yields dropped across the curve. For the first time since July 2022, the yield on the 10-year Treasury rose above the 2-year Treasury—a development that historically signals receding recession fears.
Volatility often sparks concern. However, long-term investors benefit more from staying the course than from reacting to short-term fluctuations. If you’re unsure how current trends may affect your goals, it may be time to review your strategy.
Transparent Mice: A Research Breakthrough in Biomedical Imaging
While the financial world wrestled with inflation and Fed expectations, a breakthrough from Stanford University researchers quietly made headlines in the scientific community.
Scientists discovered that a common yellow food dye, tartrazine—used in products like M&Ms and sports drinks—can temporarily make mouse skin transparent when applied topically with water.
According to The Economist, this discovery allowed researchers to see blood vessels, abdominal organs, and leg muscles in live mice—without surgery or dissection.
Once the dye was rinsed off, the mice's natural skin opacity returned, indicating a reversible and non-invasive process.
How It Works: The Science Behind Transparent Skin
Ordinary skin blocks light because its key components—fats, proteins, and water—scatter it. However, food dyes like tartrazine are excellent at absorbing light. When combined with water, they create a solution that enables more light to pass through skin, temporarily making it appear transparent.
While the method currently works on mice, adapting it for humans will require further study. Human skin is approximately ten times thicker than mouse skin. Lead researcher Dr. Zihao Ou noted that achieving a similar result would involve longer application periods and further safety research.
Potential Applications in Medicine and Health Care
This breakthrough could change how doctors and scientists study the human body. Possible uses include:
- Non-invasive brain observation
- Early tumor detection
- Improved IV placement and vein access
- More precise cosmetic treatments
Dr. Ou emphasized that while human trials are still distant, the potential is real. The study was published in the journal Science on September 6.
FAQ: Transparent Mice and Market Trends
Why did markets decline in early September?
Historically, September has been a weak month for stocks. Concerns about delayed Fed rate cuts and mixed labor data contributed to the decline.
What did the new employment report show?
The U.S. added 142,000 jobs in August. Wages rose, and unemployment fell, but slower job growth and past revisions raised caution.
What is the significance of transparent mice?
Researchers used food dye to temporarily make mouse skin transparent, revealing internal structures without surgery. It may lead to safer medical imaging methods.
Is this imaging method usable in humans yet?
Not yet. Human skin is much thicker. More research is needed to assess safety and effectiveness before human use.
Should investors worry about short-term volatility?
Short-term fluctuations are normal. Staying invested and aligned with long-term goals is usually more effective than making reactive changes.
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* The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.
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Sources
https://www.bls.gov/news.release/pdf/empsit.pdf
https://www.washingtonpost.com/business/2024/09/06/august-jobs-unemployment-labor-market/ (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2024/09-09-24_The%20Washington%20Post_3.pdf)
https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html
https://www.aaii.com/sentimentsurvey (or go to to https://resources.carsongroup.com/hubfs/WMC-Source/2024/09-09-24_AAII%20Investor%20Sentiment%20Survey_6.pdf)
https://www.aaii.com/latest/article/234628-aaii-sentiment-survey-neutral-sentiment-rises
https://www.barrons.com/market-data?mod=BOL_TOPNAV (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2024/09-09-24_Barrons_Data_8.pdf)
https://www.barrons.com/livecoverage/stock-market-today-090624?mod=article_inline (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2024/09-09-24_Barrons_The%20Yield%20Curve%20Finally%20Closed%20Normal_10.pdf)
https://www.economist.com/science-and-technology/2024/09/05/a-common-food-dye-can-make-skin-transparent (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2024/09-09-24_The%20Economist_A%20Common%20Food%20Dye%20Can%20Make%20Skin%20Transparent_11.pdf)
https://www.washingtonpost.com/science/2024/09/05/see-through-transparent-mice-food-dye/?_pml=1 (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2024/09-09-24_The%20Washington%20Post_Scientists%20Use%20Food%20Dye%20in%20Doritos%20to%20Make%20See-Through%20Mice_12.pdf)
https://www.brainyquote.com/quotes/marcel_proust_107111?src=t_discovery