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- Dow Jones crosses 36,000 points for the first time in history
- S&P500 and Nasdaq Composite also soar to fresh closing records
What’s on Focus in the Markets?
The continued surge among Wall Street stocks took the Dow Jones Industrial Average to its first close above 36,000 points. Not only that, but the broader move higher resulted in another set of all-time highs for all three major indexes.
For a third straight day of record-setting performances, the S&P500, the Nasdaq, and the Dow were lifted by increased optimism. That said, the S&P500 added 0.4%, while the tech-heavy Nasdaq climbed 0.3%. In addition, the 30-stock Dow Jones advanced 0.4% on Tuesday.
The positive momentum has taken all three stock averages at least 6.5% higher for the quarter. The move is largely a result of a stronger-than-expected earnings season despite looming challenges ahead. Still, investors are open to more risk even amid supply chain issues, inflation pressures, and prospects for higher interest rates.
What’s New Around the Markets?
On all that, Federal Reserve Chairman Jerome Powell will speak later today. In more detail, the US central bank concludes its highly important policy meeting with a press conference by the Chairman. In his speech, Mr. Powell is going to address the uncertainties lingering on the US economy.
In particular, his biggest challenge right now is inflation. Higher consumer prices over the past months have cast doubt on Mr. Powell’s remarks that inflation is temporary. Moreover, the Fed Chair had predicted that the sharp rise in prices would come down as the economy fully reopens.
Besides inflation concerns, traders and investors are also weighing the prospects for stimulus withdrawal. On that note, the Fed has been injecting $120 billion per month in the US economy since March last year.
Back then, central bankers decided this approach would help the US rebound from the Covid-19 hit. Now, however, the markets have bounced back and the ultra-loose policy is about to change. In other words, the markets expect Mr. Powell to announce a reduction of the monthly stimulus program.
What’s the Latest News on Bitcoin?
Bitcoin is keeping steady near $63,000 per coin early Wednesday. A day earlier, the biggest coin in the crypto market jumped to levels near $64,300, the highest for the week.
Ether, on the other hand, is currently trading at an all-time high. That said, the Ethereum network’s native token soared to a record high of $4,640 early on Wednesday. Presently, Ether is gravitating towards $4,550 per coin.
Crypto enthusiasts cheered this week’s developments as they increased their exposure to digital assets. In detail, El Salvador announced it will build 20 schools using profits from Bitcoin. Furthermore, El Salvador’s President Nayib Bukele praised the decision to make Bitcoin legal tender in the country.
Also, the Chicago Mercantile Exchange (CME) said it is planning to launch Micro Ether futures with a size of 0.1 ETH. The planned date for the debut is December 6.
What’s Next for Traders and Investors?
Besides the press conference from Fed’s Chair Jerome Powell, market participants will look at how certain individual stocks perform today. Tesla stock, for example, halted its phenomenal rally Tuesday when Elon Musk disrupted the momentum.
The Tesla CEO commented on Twitter regarding the recent gains in Tesla shares following the Hertz order for 100,000 cars. “If any of this is based on Hertz, I’d like to emphasize that no contract has been signed yet.”
Shortly after Mr. Musk’s Twitter post, shares of the carmaker slipped and finished the day lower by about 3%. With this in mind, the stock could be increasingly volatile today.
Today’s Economic Calendar (EST times)
- 08:15 am, US, ADP Nonfarm Employment Change (Oct)
- 02:00 pm, US, FOMC Statement
- 02:00 pm, US, Fed Interest Rate Decision
- 02:30 pm, US, FOMC Press Conference
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