The broad performance of the S&P 500 and the Dow Jones was backed by the boosted savings rate which came in at 14.9% last month, as well as the consumer spendings that etched upwards by 0.5% per the estimates.
Bitcoin has finally managed to break the $40,000 barrier. In the last seven days, it has lost as much as 5.85%. In the last month, it has dipped by 17.2%.
The current gains in the Nasdaq may help the index snap off the 2% loss it has accumulated thus far in May.
Investors and the market are looking closely at the inflation data as Wall Street looks to navigate through these muddy waters. Fears of inflation have also triggered a sell-off in growth stocks recently.
In terms of individual company performance on Wednesday, FAANG stock all closed with losses.
The crypto market reactions are based on renewed interest from retail investors that is fueled by the incorporation of digital currencies in payments.
The US stock sell-off might have been compounded by the comments that the interest rates may need to be raised to prevent excessive load on the economy.
The cryptocurrency indices use Lukka, a crypto data provider, as the data source for digital asset pricing and reference data.
Although the Federal Reserve earlier mentioned continued inflation coupled with a recovering economy, the bank had decided to keep interest rates unchanged.
According to Goldman Sachs, many of the indicated stocks have “dramatically outperformed” the broader stock market.
It is now the season of S&P 500 big tech companies reporting their first-quarter earnings. By now, about 30% of them have reported results. Nearly 88% of reporting companies beat analysts’ expectations. However, only half of them saw their stocks rise after their reports.
Strong earnings from big tech corporations are keeping the market momentum positive. However, the surge in commodity prices have fueled the fears of inflation as the consumer staples sector witnesses downward pressure.
The advisor said that 0.3% of US households that will be affected by the capital gain tax increase represents those who make over $1 million annually.
As Bitcoin (BTC) and Ethereum (ETH) are classified as taxable assets by the US tax authorities, the proposed capital gains tax will also impact crypto investors who have held and earned returns on their digital currencies for a year now.
Credit Suisse on Thursday confirmed the loss of $275 million in Q1 of 2021. The bank further warned it expects losses to spill into Q2 following the Archegos hedge fund saga. However, it has since exited 97% of its trading positions in the hedge fund.