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- Earnings reports by tech giants, Fed statement defines the week
- Bitcoin rallies above $40,000 for the first time in nearly two months
Over the past week, traders and investors experienced a wide range of events and developments that defined the course of stocks, commodities, currencies, and digital assets. From a flurry of corporate earnings by technology giants to a press conference by Fed Chair Jerome Powell, the financial markets were full of substance.
Stocks on both sides of the Atlantic wavered throughout the week, ending with mixed results. Market sentiment was largely positive after investors shrugged off worries the Delta variant could hamper global economic growth. Instead, market participants increased their optimism the accelerating expansion would continue as the corporate earnings kept piling with better-than-expected results.
Several key events narrated this week’s stock market action. Over the week, major US tech companies were slated to deliver their quarterly earnings reports. A whole set of heavyweights revealed they weathered the pandemic and came out of the second quarter with a stellar performance.
Tesla reported its first quarter with a profit of over $1bn, up ten times what it earned over the same quarter a year ago. Tech giants Apple, Microsoft, and Google-owner Alphabet reported combined profits of more than $50bn for the quarter ended June. Facebook on Wednesday said its revenue grew by 56% as profit arrived at $10.39bn. Amazon revealed Thursday it missed sales expectations, leading to the stock’s drop of over 7% in after-hours trading.
Some of the companies reporting financials, including Facebook, Apple, and Amazon, issued warnings that the growth rate could not be sustained over the next half of 2021. As a result, their stocks tumbled after the strong earnings reports.
Bitcoin Rallies Above $40,000
On Wednesday, Fed Chairman Jerome Powell appeared in a press conference to wrap up a two-day policy meeting between Fed officials. In his statement, Chairman Powell said the US central bank has decided to keep interest rates near zero while it continued to purchase bonds worth $120bn a month. The Fed Chair did hint policymakers expected to start tapering discussions relatively soon as there is already some progress toward reaching the Fed’s goals of maximum employment and stable prices.
Over to cryptocurrency, the price of bitcoin over the week reached as high as $40,850 per coin. The leading crypto asset was boosted by improved market mood and renewed growth projections about the fledgling digital asset market.
Gold climbed nearly $30 on Thursday to levels above $1,830 per ounce as the US dollar declined across the board. The EUR/USD pushed toward 1.1900 on the back of weaker-than-expected economic data. US growth during the second quarter came in at 6.5% on an annualized basis, below the 8.5% expected.
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