Wall Street Stocks and Bitcoin Hit Record Highs, Tesla Tumbles
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- Stocks on Wall Street sit at new highs, S&P500 logs its eight-straight record close
- Bitcoin jumps to a new record of $68,500, eclipsing the previous high by about $1,500
Wall Street Stocks Finish at Records, Bitcoin Soars Above $68K
Stock indexes Dow Jones, S&P500, and Nasdaq Composite notched fresh record closings to start the week. More specifically, the S&P500 secured its eight-straight trading session in which the broad-based index finished at an all-time high.
Alongside stocks, however, the fast-developing cryptocurrency market also set several records. Early on Tuesday, the price of bitcoin rallied to a fresh peak of $68,480 per coin. That said, the original cryptocurrency eclipsed its previous record high of $67,000 set in October.
Additionally, the second-largest cryptocurrency, Ether, also blew past its previous all-time high to a new record of $4,840 per coin. The Ethereum network’s native token has gained 12% over the past four days. Previously, Ether held a record high of $4,665 made on Nov. 2.
Against the backdrop of strong performances all across the financial markets, traders and investors cheer the record runs. That said, from institutions to retail traders, market participants expect the bright outlook to continue as the year comes to an end.
Tesla Stock Drops Nearly 5% After Twitter Users Cast Their Vote
Tesla stock, meanwhile, tumbled almost 5% Monday after Elon Musk’s Twitter poll decided he should sell 10% of his shares. In more detail, shares of the electric-vehicle maker slipped about 8% in pre-market trading on Monday. The catalyst: the majority of 3.5 million Twitter voters decided Mr. Musk should sell 10%, or $20bn, of his Tesla stock.
The news quickly jolted Tesla’s stock price. During the regular session, shares of the company recovered a bit and closed the day lower by 4.8%. Presently, in pre-market hours on Tuesday, ahead of the open, Tesla shares have slid about 1% further.
With this in mind, Elon Musk is the chief executive and the largest shareholder of Tesla. He has a personal fortune of over $300 billion, and about $200 billion is in Tesla shares.
What’s the Outlook for the Financial Markets?
Looking ahead, prospects for the broader financial markets remain bright. Several challenges, however, could deepen uncertainty as traders are aiming to finish the year strong.
First, the US Federal Reserve is preparing to completely withdraw its $120bn in monthly asset purchases by June next year. Since March last year, the central bank has been pouring this enormous stimulus as a way to sustain the economy.
Still, the extraordinary monetary support has resulted in accelerating inflation and supply chain disruptions. The Covid-19 spread, on the other hand, continues to be on top of the Fed’s biggest concerns for the economy.
If public health worsens, Fed officials said in the Financial Stability Report on Monday, the economic recovery could get knocked. “Asset prices may be vulnerable to significant declines should risk appetite fall, progress on containing the virus disappoint, or the recovery stall,” the bank said.
What’s Next for Traders and Investors?
Later in the week, markets will be watching for fresh US inflation data. More precisely, the consumer price index report is scheduled for release on Wednesday. The news could create heightened volatility in the forex markets.
Today’s Economic Calendar (EST times)
- 08:00 am, EUR, ECB President Lagarde Speaks
- 08:00 am, USD, PPI (MoM) (Oct)
- 09:00 am, USD, Fed Chair Powell Speaks
- 11:00 am, GBP, BoE Gov Bailey Speaks
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