US Stocks Rally as Tech Takes the Lead, Bitcoin Stable at $50K
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- Stocks on Wall Street finished Tuesday higher, Nasdaq up 3% as tech sector leads the gains
- Bitcoin price stays above $50,000 per coin as cryptos rebound from weekend rout
What’s on Focus in the Markets?
US stocks extended their strong performance for a second straight day on Tuesday after investors piled into equities from every sector. Specifically, the technology sector was among the biggest winners as tech names lagged behind the broader upside move on Monday.
All three benchmarks enjoyed a strong day with the S&P500 and the Nasdaq Composite logging their best single-day gains since March. This said the broad-based S&P500 added 2%, while the tech-heavy Nasdaq advanced 3%. In addition, the Dow Jones Industrial Average ticked up 1.4%.
In detail, green arrows were seen virtually everywhere as traders increased hopes the Omicron strain will have a milder impact. On this note, scientists and health experts are still weighing the severity of the new Covid-19 strain as more data is released regularly.
So far, however, data indicates Omicron is less likely to cause severe illness. Also, existing vaccines may be able to offer some level of protection.
Where Are Stocks Headed?
Back to stocks, the leading benchmark averages in the US already recouped all their losses from Friday’s decline. Last week, financial markets endured a heavy selloff with the Nasdaq losing nearly 2% during Friday’s regular trading.
Over the past two days, however, the technology-driven stock gauge has recovered and even gained above what it had lost last week.
Still, lingering uncertainties threaten to cast a shadow over investor optimism on equities. On that front, the US Federal Reserve is already unwinding the vast monetary support of $120 billion in monthly asset purchases.
That way, the US central bank is aiming to rein in skyrocketing consumer prices. Moreover, Fed officials are planning to speed up the withdrawal as they also plan to raise interest rates sometime in early 2022.
What’s the Latest News on Bitcoin?
In cryptocurrency markets, the price of bitcoin, the world’s largest digital asset, remains pinned near $50,000 to $51,000 early on Wednesday. With this in mind, bitcoin has been moving higher for the past three consecutive days.
To this end, bitcoin still needs about $3,500 to completely recoup its losses from the weekend rout. On Saturday, the leading token dropped by as much as 21% to $42,000 from $54,000 per coin.
Ether, the second-biggest cryptocurrency, slipped modestly yesterday but has already pared all losses from the Saturday selloff. Presently, the Ethereum token is trading near $4,350 as the outlook for crypto remains bright and many traders are now buying the dip.
What’s Next for Traders and Investors?
Traders and investors today will be watching the latest interest rate decision from the central bank of Canada. To this end, the Bank of Canada is gathering today for its last policy meeting of the year. Central bankers will announce the interest rate decision in a press conference.
The news could create increased volatility in the Canadian dollar, presenting trading opportunities for forex traders. The USD/CAD, in particular, could see higher levels of activity.
Today’s Economic Calendar (EST times)
- 10:00 am, USD, JOLTs Jobs Openings (Oct)
- 10:00 am, CAD, BoC Press Conference
- 10:00 am, CAD, BoC Interest Rate Decision
- 10:30 am, USD, Crude Oil Inventories
Check our calendar right here.
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