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- US stock indexes surge to new record highs as optimism prevails over the week
- Bitcoin spikes above $50,000 but later retreats into its two-week-long consolidation
Another week of record highs for the major US stock indexes went down in history as the market maintained its positive outlook for the global economic expansion. The S&P500 and the Nasdaq Composite snatched fresh record closings underpinned by continued optimism that the growth of the US economy remained on an upward trajectory.
Traders and investors felt confident to increase their bets on stocks across the board following assurances from Federal Reserve Chairman Jerome Powell that the US central bank will not move hastily to raise the interest rates.
While Mr. Powell signaled that the Fed is preparing to reduce its monetary support of $120bn in monthly bond purchases, market participants’ fears of higher rates were assuaged by the Fed update that an increase in interest rates is still far away.
Global stocks ended the month of August in positive territory with record highs on both sides of the Atlantic.
Another Volatile Week for Cryptocurrencies
Delta virus woes could not dissuade investors from participating in the rally. A recent surge in daily infections has lifted the daily average above 150,000 new cases, threatening to cast a shadow over the economic rebound.
Meanwhile, inflation in the eurozone spiked to 3% in August, surpassing the European Central Bank target of 2%. Some ECB officials have begun calling for a reduction of the monthly stimulus of €20bn under the €1.85tn pandemic emergency purchase program (PEPP).
Gold traded relatively unchanged for the week. The precious metal hovered between $1,800 and $1,820 per troy ounce, while silver floated near $24.
Cryptocurrencies experienced another volatile week. The price of bitcoin climbed back above $50,000 but the rally was short-lived and the leading coin slipped into its two-week-long consolidation zone in the range between $46,000 and $49,500.
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