Connect with us

Markets

Dow scales record high, Bitcoin breaches $ 50 K level

Published

on

U.S. stock index futures were modestly lower in overnight trading on Tuesday after the Dow closed at a record high.

The major indices looked like they were ready to go after the long holiday weekend, and they did at the open. Unfortunately, many stocks couldn’t sustain that buzz all-day. Stocks jumped into early gains Tuesday as bonds tumbled, commodities soared and stimulus optimism buoyed market sentiment.

On the Nasdaq 100, JD.com (JD) seized the early lead, up 4.7% after a regulatory filing revealed plans to spin off its logistics unit as an independent entity on the Hong Kong Stock Exchange. Zoom Video (ZM) and China-based Trip.com (TCOM) each rallied 4%.

Chipmakers showed strength, with Nvidia rising in a buy range. Bitcoin surged above $50,000, helping to boost PayPal Holdings. Salesforce.com plowed to the head of the Dow Jones today.

Commodities play crowded the top of the S&P 500 as markets reacted to weather-driven power outages in Texas. Oil stocks held six of the S&P 500’s top early gains.

Futures contracts tied to the Dow Jones Industrial Average slid 47 points. S&P futures were plowed down 0.23%, while Nasdaq 100 futures declined 0.33%.

Meanwhile, the 10-year Treasury yield topped 1.30% on Tuesday, a level last seen in February 2020. The 30-year rate also hit its highest level in a year.

On the earnings front, Hilton is set to report quarterly results on Wednesday before the market opens, while Owens Corning, Wingstop, Analog Devices, and Nabors are among the names on the docket after the closing bell.

Bitcoin topped $50,000 for the first time, doubling in value in less than two months. The digital currency traded as high as $50,584.85, before closing at $48,642.45, up 0.95% for the day and 68% for the year, with a total market value in circulation close to $909 billion.

Meanwhile, the weakness in both the dollar and euro is posing a dilemma for investors about which is the best source of funding for emerging-market carry trades. The dollar has been sliding since the second quarter of 2020 as the Federal Reserve cut interest rates to a record low and spiraling coronavirus infections pummeled the U.S. economy.

On balance, the U.S. currency is still the market’s favorite.

 

 

 

 

 

 

 

 

 

 

 

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending