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US Futures Up After Record High for S&P500, Bitcoin Slides 5%

US futures up a day after the S&P500 posts its 66th record close of the year. Nasdaq also at an all-time high. Bitcoin slips 5%.

SageFX - Nov, 19, 21

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Principal Points

  • Stock futures higher on Friday as the S&P500 sits at an all-time record along with the Nasdaq
  • The price of bitcoin moved farther from recent highs as it fell 5% Thursday to a low of $55,500

What’s Moving in the Markets?

US stock futures were up early on Friday ahead of the regular session and after the S&P500 set a new all-time high. In addition, the Nasdaq Composite also edged up on Thursday and finished trading at a fresh record close.

In pre-market action on Friday, Dow futures were up about 0.3%. Additionally, S&P500 futures and Nasdaq futures gained 0.3%, and 0.5%, respectively.

Thursday’s session, however, was relatively choppy. This said, the broad-based S&P500 had to erase a modest intraday loss to notch its 66th record close of the year. While the tech-heavy Nasdaq and the S&P500 are on pace to log a winning week, the Dow is down 0.6% for the week.

In detail, the Dow Jones Industrial Average was pressured this week amid inflation concerns and supply-chain worries for real-economy companies.

What’s the Big Picture for Traders?

Still, some positive signs of economic recovery emerged yesterday. More specifically, the US jobless claims drifted down to 268,000 for the past week. Claims for unemployment benefits are at their lowest level since the start of the pandemic.

Moreover, in Washington, the House of Representatives is looking to pass President Joe Biden’s $1.75 trillion Build Back Better bill. The spending package will be directed towards education, healthcare and climate priorities.

The news improved the mood over the wider financial markets. It also boosted investor appetite for risky assets such as stocks despite several challenges for US economy. Among other concerns, surging consumer prices could dent the economic rebound. Further, the US Federal Reserve is expected to reduce its monetary support by $15 billion this month.

With this in mind, the US central bank has been injecting $120 billion in monthly asset purchases since March 2020.

What’s Happening in Cryptocurrency Markets?

While traditional investors scramble to digest recent economic updates, cryptocurrency traders are witnessing a selloff. More precisely, the price of bitcoin dropped 5% on Thursday and another 3% early Friday. As a result, the orange coin reached a one-month low of $55,500 per coin.

The drop came less than a couple of weeks after bitcoin set a fresh record high of $69,000. To this end, the token is now trading near $56,500, down 18% from its record. On this note, bitcoin is likely to snap a seven-week winning stretch as its currently lower by 12% for the week.

Other major tokens are also in decline by roughly the same amount. Ether, for example, is now trading near $4,060, down about 11% this week.

Still, despite the decline, cryptocurrency proponents remain confident the rally will gain traction again. They rely on strong institutional support and growing adoption, coupled with the increasing popularity of crypto assets. Against this backdrop, many traders are looking to buy the dip at current discounted prices.

Economic Data Coming Up Today (EST times)

On Friday, market participants will watch for the latest core retail sales report from Canada. The data is expected to arrive at 08:30 am. Later, at 01:00 pm, European Central Bank President Christine Lagarde will hold a speech. The events could increase the volatility in the forex market, presenting trading opportunities during the day.

 

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