Bitcoin

What’s driving the markets on Friday? (ADJUSTED)

Published

9 months ago

10 May, 2024

Stocks Pause On Dismal Consumer Confidence; Yields, Dollar Rise As Inflation Expectations Kick Higher, Bitcoin Sinks: What's Driving Markets Friday? (CORRECTED)

Stocks pause due to terrible consumer confidence; Yields, Dollar Rises as Inflation Expectations Rise, Bitcoin Sinks: What’s Driving Markets on Friday? (ADJUSTED)

Editor’s note: This story has been updated to correct an error in Charter Communications’ stock price action.

A worse-than-expected May consumer report from the University of Michigan halted stock gains on Friday, prompting concerns about a possible decline in consumer health amid perceived increasing pressures on prices.

The report revealed that short- and long-term inflation expectations exceeded projections this month, causing the broader consumer gauge to hit its lowest levels in six months.

“If spending slows and inflation rises, we will get the opposite of the Goldilocks scenario that many expected, and the Fed will be in an especially difficult position of choosing between accommodating a slowing economy and combating rising inflation expectations,” he said. Chris Zaccarellichief investment officer at Independent Advisor Alliance.

Echoing this vision, Jeffrey Roachchief economist at LPL Financial, sees rising risks of stagflation, a concern that could disrupt markets.

At 12:05 p.m. trading in New York, the S&P 500 fell 0.1%, but rose steadily by 1.6% for the week, poised to secure a third consecutive week of gains, after three of losses.

The Dow Jones Industrial Average rose slightly, struggling to secure an eighth consecutive session of gains, the longest positive streak since December 2023. Technology stocks remained steady. Small caps performed the worst, with the iShares Russell 2000 ETF (NYSE:IWM) fell 0.9%.

Rising perceptions of inflation in consumer research rescued the dollar, which forecast a positive weekly close, after two negative ones.

Treasury yields also rose about 4 basis points across all maturities. The 10-year benchmark reached 4.5%.

Gold rose to US$2,385/oz, with the SPDR Gold Trust (NYSE:GLD) an increase of 0.8%.

Dismal consumer sentiment data weighed heavily on Bitcoin (CRYPTO: Bitcoin) with the largest cryptocurrency falling more than 4% from $63,000 to less than $60,500 following the report.

Chart of the Day: Michigan Dings Bitcoin Consumer Sentiment Data

Friday Performance in Major US Indices and ETFs

Main indices	Price	1-day percentage change
Dow Jones Index	39,411.32	0.1%
Nasdaq 100	18,108.22	0.0%
S&P 500	5,209.09	-0.1%
Russell 2000	204.04	-0.9%

Updated at 1:05 p.m.

O SPDR S&P 500 ETF Fund (NYSE:SPY) remained unchanged at $520.20, the SPDR Dow Jones Industrial Average (NYSE:DAY) rose 0.2% to $394.65 and the high-tech sector Invesco QQQ Trust (NASDAQ:QQQ) rose 0.1% to $441.38, according to Benzinga Pro Data.

Sectorally, the Finance Selected Sector SPDR Fund (NYSE:XLF) had superior performance, up 0.5%. O Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY) was the main laggard, with a drop of 0.6%.

The story continues

Friday Stock Movers

Novavax Inc. (NASDAQ:NVAX) rose by a surprising 122%, after the company announced a Covid-19 vaccine licensing agreement with Sanofi (NASDAQ:SNY). The pharmaceutical company reported a smaller-than-expected loss in the latest quarter, but missed revenue estimates.
MacroGenics Inc. (NASDAQ:MGNX) dropped 77% following an interim update on a mid-stage study of a cancer drug candidate, which reported the unfortunate deaths of several study participants. Furthermore, the quarter’s results fell short of expectations.
Carta Communications Inc. (NASDAQ:CHTR) rose 4.6% after the company initiated a public offering to repurchase senior secured notes due 2025 for up to $1.7 billion in cash.
Modern Inc.. (NASDAQ:mRNA) fell 4% after the company announced that the FDA will not complete its review of the respiratory syncytial virus (RSV) MRNA vaccine by the scheduled action date of May 12 due to administrative restrictions. The FDA said it expects to complete the review by the end of May.
Companies that reacted to profits were Gen Digital Inc.. (NASDAQ:GER) up to 15%, Mettler-Toledo International Inc. (NYSE:MTD) up to 14%, Akamai Technologies Inc. (NYSE:A NETWORK) drop of 10%, Ubiquiti Inc. (NYSE:UI) up to 8%, DigitalOcean Holdings Inc. (NYSE:DOCN) increase of 6.6%, Construction Partners Inc. (NASDAQ:ROAD) increase of 2.6%, Sylvamo Corp. (NYSE:SLVM) drop of 5%, Costamare Inc. (NYSE:CMRE) increase of 1.3%, Marathon Digital Holdings Inc. (NASDAQ:MARA) drop of 8%, Insule Corp. (NASDAQ:PODD) drop of 4%, H&R Block Inc.. (NYSE:HRB) increased by 9.7%, and Genpact Ltda. (NYSE:G) an increase of 5.7%.

Read now: Tesla German Gigafactory Faces Climate Protesters on Friday: ‘Why Aren’t They Arrested’, Asks Musk

Image generated with artificial intelligence via Midjourney.

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This article Stocks pause due to terrible consumer confidence; Yields, Dollar Rises as Inflation Expectations Rise, Bitcoin Sinks: What’s Driving Markets on Friday? (ADJUSTED) originally appeared in Benzinga.com

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Bitcoin

Bitcoin (BTC), Stocks Bleed as China’s Surprise Rate Cut Signals Panic, Treasury Yield Curve Steepens

Published

6 months ago

25 July, 2024

AltcoinUpdates Staff

Bitcoin (BTC), Stocks Bleed as China’s Surprise Rate Cut Signals Panic, Treasury Yield Curve Steepens

Risk assets fell on Thursday as China’s second rate cut in a week raised concerns of instability in the world’s second-largest economy.

Bitcoin (BTC)the leading cryptocurrency by market cap, is down nearly 2% since midnight UTC to around $64,000 and ether (ETH) fell more than 5%, dragging the broader altcoin market lower. The CoinDesk 20 Index (CD20), a measure of the broader cryptocurrency market, lost 4.6% in 24 hours.

In equity markets, Germany’s DAX, France’s CAC and the euro zone’s Euro Stoxx 50 all fell more than 1.5%, and futures linked to the tech-heavy Nasdaq 100 were down slightly after the index’s 3% drop on Wednesday, according to the data source. Investing.com.

On Thursday morning, the People’s Bank of China (PBoC) announced a surprise, cut outside the schedule in its one-year medium-term lending rate to 2.3% from 2.5%, injecting 200 billion yuan ($27.5 billion) of liquidity into the market. That is the biggest reduction since 2020.

The movement, together with similar reductions in other lending rates earlier this week shows the urgency among policymakers to sustain growth after their recent third plenary offered little hope of a boost. Data released earlier this month showed China’s economy expanded 4.7% in the second quarter at an annualized pace, much weaker than the 5.1% estimated and slower than the 5.3% in the first quarter.

“Equity futures are flat after yesterday’s bloody session that shook sentiment across asset classes,” Ilan Solot, senior global strategist at Marex Solutions, said in a note shared with CoinDesk. “The PBoC’s decision to cut rates in a surprise move has only added to the sense of panic.” Marex Solutions, a division of global financial platform Marex, specializes in creating and distributing custom derivatives products and issuing structured products tied to cryptocurrencies.

Solot noted the continued “steepening of the US Treasury yield curve” as a threat to risk assets including cryptocurrencies, echoing CoinDesk Reports since the beginning of this month.

The yield curve steepens when the difference between longer-duration and shorter-duration bond yields widens. This month, the spread between 10-year and two-year Treasury yields widened by 20 basis points to -0.12 basis points (bps), mainly due to stickier 10-year yields.

“For me, the biggest concern is the shape of the US yield curve, which continues to steepen. The 2- and 10-year curve is not only -12 bps inverted, compared to -50 bps last month. The recent moves have been led by the rise in back-end [10y] yields and lower-than-expected decline in yields,” Solot said.

That’s a sign that markets expect the Fed to cut rates but see tighter inflation and expansionary fiscal policy as growing risks, Solot said.

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Bitcoin

How systematic approaches reduce investor risk

Published

6 months ago

25 July, 2024

AltcoinUpdates Staff

How systematic approaches reduce investor risk

Low liquidity, regulatory uncertainty and speculative behavior contribute to inefficiency in crypto markets. But systematic approaches, including momentum indices, can reduce risks for investors, says Gregory Mall, head of investment solutions at AMINA Bank.

July 24, 2024, 5:30 p.m.

Updated July 24, 2024, 5:35 p.m.

(Benjamin Cheng/Unsplash)

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Bitcoin

India to Release Crypto Policy Position by September After Consultations with Stakeholders: Report

Published

6 months ago

25 July, 2024

AltcoinUpdates Staff

“The policy position is how one consults with relevant stakeholders, so it’s to go out in public and say here’s a discussion paper, these are the issues and then stakeholders will give their views,” said Seth, who is the Secretary for Economic Affairs. “A cross-ministerial group is currently looking at a broader policy on cryptocurrencies. We hope to release the discussion paper before September.”

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Bitcoin

Bitcoin (BTC), Ether (ETH) slide as risk aversion spreads to crypto markets

Published

6 months ago

25 July, 2024

AltcoinUpdates Staff

Bitcoin (BTC), Ether (ETH) slide as risk aversion spreads to crypto markets

Ether, the second-largest token, fueled a slide in digital assets after a stock rout spread unease across global markets.

Ether fell about 6%, the most in three weeks, and was trading at $3,188 as of 6:45 a.m. Thursday in London. Market leader Bitcoin fell about 3% to $64,260.

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