Stock Futures, Bitcoin Jump to Kick Off Trading Week

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The bullish mood was spread across multiple sectors and assets, including growth stocks and cryptocurrencies.

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Bitcoin rose along with other cryptocurrencies, continuing to return recent losses after a grueling weekend. According to data from CoinDesk, bitcoin recently traded around $21,070, up 3% from its price at 5 p.m. ET on Monday, and nearly 20% above its recent low of $17,601.58.

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Investors’ appetite for riskier assets on Tuesday comes after a tumultuous week in markets, driven by the Federal Reserve’s approval of a 0.75-cent-point interest rate hike, the biggest since 1994. This has left investors scrambling to offload the riskier asset amid growing fears. That central bankers would plunge the US economy into recession. The benchmark S&P 500 lost 5.8% in the week, its biggest one-week drop in more than two years.

Government leaders and officials in recent days have tried to reassure an increasingly panicked nation that an economic slowdown is not guaranteed as central bankers work to overcome decades of high inflation. President Biden said on Monday that he spoke with former Treasury Secretary Lawrence Summers, and reiterated that he does not see a recession as inevitable. Federal Reserve Bank of St. Louis President James Bullard also said the economy is on track for further expansion this year.

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Still, some investors are ready to call the sell-off in the markets down, which has dragged the S&P 500 down 23% this year. Many say they view market volatility, as seen in the markets last week, as buying opportunities.

Tuesday’s bullish mood coupled with a sell-off in US government bonds is sending the yield on the 10-year US Treasury note higher. The yield on the benchmark note was trading higher at 3.275% from 3.238% on Friday. Yields and bond prices move in opposite directions.

In premarket trading in New York, gains were spread across multiple sectors, with technology stocks, travel companies and banks trading higher. Cruise Lines Royal Caribbean Group,

Carnival and Norwegian Cruise Line holdings climbed more than 3% each, while American Airlines Group climbed 3.1%, boosting expectations for what was expected to be a busy travel season.

Megacap technology companies climbed even before the opening bell, with Amazon.com adding 2.2% and Netflix adding 2.3%. Tesla jumped 2.9%.

Other safe-haven assets retreated on Tuesday amid improving investor sentiment. The Businesshala dollar index, which measures the greenback against a basket of 16 currencies, slipped 0.3%. Gold fell 0.2% to $1,837 per troy ounce.

Oil prices rose in commodities. International benchmark Brent crude rose 1.3% for the second day at $115.62 a barrel. Last week, oil prices plunged amid concerns that a potential slowdown would hit energy demand.

Overseas, the pan-continental stock Europe 600 gained 1%. Trade in Asia was mixed. Hong Kong’s Hang Seng rose 1.9% and Japan’s Nikkei 225 rose 1.8%, while China’s Shanghai Composite lost 0.3%.

Write to Caitlin McCabe at [email protected]

Credit: www.Businesshala.com /

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