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- US stock futures float higher after House of Representatives passes $1.75tn stimulus bill
- Bitcoin’s price remains near the $60,000-mark as traders prepare to enter the week
What’s on Focus in the Markets?
US stock futures hover higher early Monday as traders and investors prepare to enter the trading week. This said market sentiment remains mostly positive after last week’s record highs for the S&P500 and the Nasdaq Composite.
In addition, the House of Representatives finally passed on Friday the $1.75 trillion Build Back Better bill. This was a big leap for Joe Biden’s ambitious social spending package. The fate of the package, however, is not yet decided as it is now headed to the Senate for voting.
Regardless, investors cheered the passage despite the fact that every Republican and one Democrat opposed it in a 220-213 vote.
According to President Joe Biden, the spending bill is a “giant step forward in carrying out my economic plan to create jobs.” Additionally, the stimulus package will “reduce costs, make our country more competitive, and give working people and the middle class a fighting chance”.
Where Are Stocks Headed?
Stocks in the financial markets are currently sitting at records. The seemingly unstoppable rally in the risky assets continued even after the Federal Reserve announced a reduction of monetary support. More specifically, the US central bank will dial down its $120 billion in monthly asset purchases by $15 billion in November.
To this end, the fate of stocks remains uncertain. Further, high-interest rates pose a threat to the high valuations of stocks. In addition, investors fear surging inflation and rising Covid-19 cases. It’s important to note that Covid-19 deaths this year surpassed the total number of reported deaths for the previous year.
These concerns, coupled with supply-chain issues, could present challenges ahead for investors and companies in the holiday quarter.
What’s the Latest News on Bitcoin?
In the meantime, the price of bitcoin recovered significantly during the week. In more detail, the original cryptocurrency pushed higher by about 7% to reach a session high of $60,000 on Sunday. Against this backdrop, crypto traders are confident the rally will continue. Moreover, they view the recent selloff that wiped about 20% from bitcoin’s price as a needed pullback.
It’s worth noting that over its relatively short history, bitcoin has lost over 80% of its price three times. And after every crash, the orange coin has recovered and continued on its upward trajectory. Presently, bitcoin is trading rather unchanged at levels near $57,500 per token.
The broader cryptocurrency market, on the other hand, is currently floating above $2.6 trillion in value. In other words, about 13% away from its record high of $3 trillion set earlier in November.
El Salvador to Create a Bitcoin City and Buy More BTC
Moreover, El Salvador announced Saturday night it is planning to build the world’s first Bitcoin City. President Nayib Bukele broke the news at a Bitcoin Summit in his country.
According to him, the city would be powered entirely by green energy through a volcano. Also, it will have virtually no taxes and will host a giant Bitcoin symbol in its center.
The bitcoin-focused project would be funded by $1 billion in bitcoin bonds. Of them, $500 million would be used to buy new bitcoin. The other half would go to US dollars to pay for expenses.
What’s Next for Traders and Investors?
Looking ahead into the week, traders will watch for the US gross domestic product (GDP) data released Wednesday. Also, US traders will celebrate Thanksgiving Day and stock trading will be closed on Thursday. Additionally, Friday’s market action in the US will be shortened to 1 pm.
In other news, US President Joe Biden is expected to reveal the name of the next Federal Reserve Chairman. In previous comments, Mr. Biden has said he would like the current policies from Jerome Powell to be extended.
However, he could also choose to appoint Lael Brainard as head of the Fed. His decision is likely to be announced by Thanksgiving Day.
Today’s Economic Calendar (EST times)
- 10:00 am, USD, Existing Home Sales (Oct)
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