Wall Street Stocks Wobble as Bitcoin Rallies Above $55K
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Key Takeaways
- Wall Street stocks waver as nervousness in October continues to rattle investor confidence
- Bitcoin eclipses $55,000 amid increased optimism the prospects for crypto will be strong
Whatâs on Focus in the Markets?
Wall Street stocks finished Wednesday higher after reversing a selloff earlier in the day. The choppy trading session began with a 460-point loss for the Dow Jones Industrial Average. Later, however, all three major US stock gauges rallied from their session lows to finish the day in the green.
That said, the S&P500 advanced moderately by 0.4%, while the Nasdaq Composite gained almost half a percent. The 30-stock Dow, meanwhile, gained 0.3% led higher by shares of utilities and real estate companies.
In currency markets, the US dollar continued to advance against its peers Wednesday. The EURUSD pair reached a multi-month low at 1.1530 as US dollar strength defined the pairâs price action. In addition, the greenback was also able to chip away some of the sterlingâs gains over the past few days. The GBPUSD slipped to a low of 1.3544 on Wednesday.
Whatâs the Latest News on Bitcoin?
Bitcoin, the first and largest cryptocurrency, rallied yesterday, topping $55,000. Moreover, early on Thursday, the orange coin pushed even higher. It hit a session peak of $55,700, a price level last seen in early May.
The major cause is considered to be expectations that a US regulatory framework will not dent cryptocurrenciesâ stellar performance. That being said, regulatory fears eased this week when three major finance-centered government institutions said they will not ban crypto. Namely, these are the Treasury Department, the Securities and Exchange Commission, and the Federal Reserve.
Whatâs New Around the Markets?
In recent days and even weeks, investors have grappled with the new reality defined by high inflation and slowing growth. Moreover, the bumpy performance of stocks and currencies has been a sign that market participants are increasingly wary of the risks ahead.
In other words, the prospects of persistent inflation cast a shadow over the record run for stocks. Additionally, higher interest rates and reversal of monetary support from the Federal Reserve weigh further on the upbeat outlook.
At the same time, this week has been especially tumultuous because of the debt-ceiling issue. In more detail, US lawmakers are trying to figure out how to make sure the government will avoid a default. Treasury Secretary Janet Yellen said earlier this week that her department will not be able to pay its bills unless the debt limit is raised. To do that, she said, lawmakers must act within two weeks.
Whatâs Next for Traders and Investors?
The market this week is getting closer to the most anticipated monthly report, the nonfarm payrolls for September. In practice, the nonfarm payrolls will show how many new jobs were added to the US labor market for the previous month. In addition, traders will be watching for the latest unemployment number, also due on Friday.
Todayâs Economic Calendar (EST times)
- 08:30, US, Initial Jobless Claims
- 10:00, CAD, Ivey PMI (Sep)
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