2024-03-11 22:20:02
Bitcoin is above $72,000… and US stocks are declining
The S&P 500 and Nasdaq indices declined in trading on Monday, following a wave of rises witnessed in American stocks, which allowed the two indices to record record levels over the past weeks, while the cryptocurrency Bitcoin continued to shine, settling above the level of 72 thousand dollars for the first time in… Its history, in the absence of any signs of losing momentum.
By the end of trading on the first day of the week, the S&P 500 index, the most representative of the sectors of the American economy, was down by 0.11%, following reducing the losses of the first hours, and the Nasdaq index fell by 0.41%, as shares of technology companies faced difficulties, with both indices recording their negative session. The second in a row, while the Dow Jones Industrial Average succeeded in entering the green zone, albeit by a rate that did not exceed one-eighth of a percentage point.
After huge rises, which increased in pace in the last two months of last year, the share prices of Super Microcomputer and NVIDIA fell by 5% and 2%, respectively, following investors began to wonder if there was an opportunity for the price of the two shares to rise further, during… Next period. Super Micro Computer shares have risen by 284%, and NVIDIA shares have risen by 74%, since the beginning of the year.
Shares of “Meta”, which owns the famous social networking site “Facebook”, also suffered, as it lost more than 4% in Monday’s trading, while companies outside the technology sector were not spared from declines, with the pharmaceutical company “ELI Lilly” losing more than 3%. %.
US stocks await inflation data
These losses come as traders look forward to February CPI data, scheduled for release on Tuesday. Economists surveyed by Dow Jones expect the consumer price index to rise by 0.4% between January and February, and 3.1% on an annual basis.
Excluding volatile food and energy prices, the so-called basic basket is expected to rise by 0.3% on a monthly basis, and by 3.7% on an annual basis.
Later in the week, investors’ attention will shift to the producer-focused index. These two releases are among the last major economic reports expected before Federal Reserve officials meet to decide on the interest rate, on Wednesday of next week.
“At the end of the day, markets are probably still very optimistic regarding the Fed’s ability to cut interest rates significantly in 2024,” said Lara Ramey, chief US economist at FS Investments. “I think the February inflation data will serve as another reminder that the Fed needs to act cautiously,” she added.
Bitcoin hits a new record high
Relatedly, Bitcoin recorded a new record high, reaching $72,739 per unit, before falling slightly during Monday’s trading.
The cryptocurrency, the most valuable in the world, received support from cash flows into new Bitcoin funds traded in the spot market, and was also supported by hopes that the Federal Reserve would reduce interest rates soon.
In the energy market, oil prices witnessed a slight change on Monday, with fears of supply disruption due to the war in the Middle East receding, and Chinese data indicating weak demand, while sales were limited by an increase in refining activities in the United States.
Brent crude futures for May delivery rose 13 cents at settlement to $82.21 a barrel. US West Texas Intermediate crude futures for April delivery fell eight cents, bringing the price at settlement to $77.93 per barrel.
Both crude oil prices fell last week, amid Chinese data indicating weak demand in the world’s largest importer of crude oil.
Brent fell 1.8% at the end of last week, despite trading above $80 a barrel for just over a month, and West Texas Intermediate crude fell 2.5%.
Data on Thursday showed that China’s crude oil imports rose in the first two months of the year, compared to the same period in 2023, but were weaker than previous months, continuing the trend of declining purchases.
“It seems that the conflict in the Middle East is not at the top of the list of driving forces for investors, as it has not led to major supply disruptions,” said Tamas Varga of oil brokerage BVM.
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