US Stocks Struggle to Regain Grounds, Bitcoin Jumps 4%
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- Stocks in the US struggle to pare back losses after the heavy selling wave a day earlier
- Bitcoin jumps about 4% to trade near $44,000, Ether spikes more than 5% to over $3,050
US Stocks Struggle to Regain Momentum, Finish Mixed
US stocks experienced choppy trading on Thursday as investors attempted to recoup some of the losses from a day ago. The S&P500 and the Dow Jones rose modestly, while the Nasdaq Composite remained pressured and seeking direction. Meanwhile, the price of bitcoin accelerated in the early hours of Thursday’s session.
The three major indexes hovered between gains and losses throughout the session on Wednesday. As a result, the S&P500 closed mildly higher by 6.83 points, or 0.16%, to 4,359.46. Similarly, the Dow Jones Industrial Average gained 90.73 points, or 0.26%, to end the day at 34,390.72. In contrast, the Nasdaq Composite slipped into the red and lost 34.23 points, or 0.24%, to settle at 14,512.44.
In individual stock action, technology shares traded mixed yesterday. Aiming to stage a relief rally, shares of Apple gained 0.6%, while Google parent Alphabet rose 1.1%. Additionally, Tesla added half a percent, and Netflix popped 2.6%.
Both blue-chip indexes, Dow Jones and S&P500, rebounded slightly from heavy losses on Tuesday when the S&P500 fell 2%.
Futures Point Higher on Thursday
On Thursday, US index futures were higher by more than half a percent, indicating a renewed attempt by investors to scoop up discounted shares.
Broadly, the US stock market has rallied during the year. More precisely, the S&P500 has posted new records 54 times so far in 2021. However, in early September, the upbeat mood was darkened by lingering uncertainties and investors have decreased their appetite for stocks.
Recent Rally has Lost Steam
The recent volatility in stocks has been the result of several major factors weighing on the financial markets. Firstly, the Covid-19 pandemic kept spreading across the globe, threatening to hurt the economic reopening. On that note, consumer spending, labour-market growth, and the return of business activity could weaken.
Secondly, the continued surge in inflation is causing investors to worry that the lofty valuation of stocks may not be justified. In addition, consumers are wary of making big-ticket purchases due to the sharp rise in prices.
And thirdly, the reversal of easy-money policies by central banks has the potential to derail the powerful rally that has relied on monetary stimulus to grind higher. So far, however, investors have stepped in and bought the dip.
Bitcoin Price Spikes 4% Early Thursday
Bitcoin, the largest cryptocurrency in the world, pushed higher early on Thursday. The orange coin gained about 4% and targeted the $44,000 level, reaching just below the threshold.
Bitcoin, similar to stocks, has struggled in September and is poised to finish the month with a loss. Ether, the second-biggest coin in the market, advanced more than 5% to reach a session high of roughly $3,050 per token.
Nevertheless, crypto market enthusiasts remain confident that the crypto industry is still in its early stage of development. With growing support from institutions, corporations and professional investors, analysts say, the fast-emerging crypto space is bound to rocket higher.
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