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18 Oct 2021
2 min read

Wall Street Stocks Rally amid Strong Earnings Season, Futures Up

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Key Takeaways

  • Wall Street equities close their best week in months as strong earnings reports boost sentiment
  • Bitcoin tops $60,000 as the market expects the SEC to grant the first Bitcoin ETF approval today

What’s on Focus in the Markets?

Wall Street stocks rose broadly on Friday while futures remain flat to modestly higher early on Monday. Strong earnings reports managed to turn the market around as near the end of the week, investors reversed earlier losses.

That said, third-quarter financial data from the biggest Wall Street players delivered soaring revenue and profit. Goldman Sachs, for example, reported earnings of $5.38bn in the quarter ended September. The figure was up 60% from the same period a year ago. Other investment banks, including JPMorgan and Morgan Stanley, also surpassed previous numbers and topped analyst expectations.

As a result, US stocks enjoyed their best week in months as the market mood has shifted to strongly positive. In more detail, the S&P500 rose 1.82% over the week, the index’s best weekly performance since July. In addition, the Nasdaq Composite added 2.18%, while the Dow Jones Industrial Average advanced 1.58% Monday through Friday.

What’s the Latest News on Bitcoin

Meanwhile, the price of bitcoin continues to push higher. In the early hours of Monday’s session, the orange coin was already up over 5% on the day. Moreover, it had managed to successfully pare weekend losses as both Saturday and Sunday were down days for bitcoin.

Bitcoin is currently trading around $62,400 per token. In other words, just about 3% from the all-time record of $64,800 set on April 14.

Fueling the upside move is today’s big update anticipated from almost every investor in the financial markets. More precisely, US regulators will decide whether to give the green light to the first-ever Bitcoin ETF in the US.

The Securities and Exchange Commission has reached the final day to review a ProShares application for an exchange-traded fund based on bitcoin futures. If approved, the fund called Bitcoin Strategy ETF, would give millions of US investors access to bitcoin futures. While the Bitcoin ETF would not be trading actual Bitcoin, it will allow institutions to dive into the crypto market.

What’s New Around the Markets?

Oil prices surge for another day on Monday. The international benchmark, Brent crude, topped $86 a barrel. At the same time, US oil peaked at almost $84 a barrel. Against that backdrop, rising inflation has been causing increased jitters among market participants.

High inflation, however, is already showing signs of staying longer than expected. And, on that note, central banks such as the US Federal Reserve, have said the jump in consumer prices might last well into next year.

What’s Next for Traders and Investors?

As the week unfolds, the financial markets will be defined by the continuation of the earnings season. Major US and European companies are slated to reveal how they weathered the third quarter amid heightened uncertainties.

In addition, trading opportunities will be present in the forex market. The British pound and the euro, in particular, are bound for volatility ahead of inflation data coming up this week.

Today’s Economic Calendar (EST times)

  • 09:30 pm, AUD, RBA Meeting Minutes

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