Markets Weekly Recap
*OspreyFX would like to state that traders should research extensively before following any information given hereby. Any assumptions made in this article are provided solely for entertainment purposes and not for traders to guide or alter their positions. Please read our Terms & Conditions and Risk Disclosure for more information.
- US stocks reach new records amid rosier economic outlook, a deal on infrastructure
- Bitcoin drops to a January low, recovers slightly to trade near $35,000 per coin
The financial markets this week went through another whirlpool of events that defined the direction of stocks, currencies, commodities, and cryptos. Traders and investors across a wide range of assets strove to position their portfolios in a way that would accommodate a continuing economic recovery underpinned by a steady monetary policy and a new wave of fiscal stimulus provided by the US government.
Stocks traded sharply to the upside this week as market participants renewed their optimism toward shares from a broad area of economic sectors. This week’s stock market performance marked a U-turn from the sell-off that happened during the second half of last week when the Federal Reserve announced it is planning two interest rate increases by 2023.
China Crypto Ban Wrecks Bitcoin
Against the backdrop of a strong greenback, commodities erased weeks of gains. Gold tumbled to a six-week low and ended the session on Thursday with a weekly loss of 5.5%. Crude oil declined by roughly 0.50% and reached $74.12 per barrel.
On Thursday, the Dow Jones Industrial Average extended its Wednesday losses and slid another 210 points, while the S&P500 was modestly lower and the Nasdaq Composite eked out a mild gain. Friday was marked by a relative calmness in the equity markets as investors took time to digest the news.
Major currencies, however, extended their losses against the US dollar as the rally in the greenback shifted gears. The EUR/USD slipped under the 1.2000 mark, while the GBP/USD dropped below the 1.4000 milestones. The USD/CAD and the USD/CHF rallied by over 1% each.
On the cryptocurrency front, the digital currency market depreciated in the wake of the Federal Reserve update. Bitcoin remained subdued below the $40,000 area as crypto traders couldn’t provide enough buying power to push the asset higher.
Subscribe to our newsletter to receive our weekly updates + more straight to your inbox!