US Stock Futures Higher, Bitcoin Jumps on Elon Musk Tweet
Stocks advance on Monday, futures holding to the upside on Tuesday, tech in the lead. Cryptos continue their rebound.
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- Stocks advance on Monday, futures holding to the upside on Tuesday, tech in the lead
- Cryptos continue their rebound, bitcoin reaches slightly below $40,000
US stocks moved higher on Monday after investors decided to renew their optimistic view toward the market even amid rising inflation concerns that have recently hurt the valuations of tech shares. A rebound in growth stocks, such as technology and communications, led the climb yesterday, as market participants seemed to be more comfortable with the prospect of higher inflation.
All three major indexes ended in the green on Monday. The Nasdaq Composite advanced 1.41%, or 190.18 points, to finish at 13,661.17. The S&P500 jumped 0.99%, or 41.19, to 4,197.05. And the Dow Jones Industrial Average gained 0.54%, or 186.14 points, to end the session at 34,393.98.
Technology stocks were among the biggest winners in yesterday’s trading. Shares in Apple, Amazon, and Netflix advanced by a little over 1% each. Facebook, Google’s Alphabet and Microsoft, all jumped by more than 2%. Tesla was among the best-performers, popping 4.4%, or $25.56, to close at $606.44.
While inflation pressures are still a lingering concern for investors, the market this week is pushing higher, fueled by renewed optimism that the American economy will recover swiftly, even if that would bring higher prices. Equity futures on Tuesday are positive for all three stock gauges. Futures contracts tied to the Nasdaq Composite indicate a higher open by roughly 0.50%, while Dow and S&P futures are higher by about 0.25% apiece.
The Federal Reserve has commented several times, including yesterday, that inflation will be “transitory” and that the central bank has the necessary tools to keep it moderately above the 2% target.
Concerns Among Investors
The Fed’s approach to the economy, however, is making some investors nervous. Amid a wider recognition that there will be a short-lived bump in inflation, some market participants fear that the Fed is not responding adequately to the rapid growth of the US economy. The Federal Reserve, during its last meeting, confirmed it will maintain the current pace of monetary stimulus which stands at $120bn of bond purchases per month. Fed policymakers expect the US economy to grow by 6.5% in 2021, the fastest economic growth since 1983.
On the cryptocurrency front, digital assets continued their pace of recovery on Monday, extending the gains throughout the whole day. In the early hours of Monday’s trading, bitcoin pushed higher by around 9%, with ether following behind with an 8% gain. Later, bitcoin advanced further and ended the session up over 15%, while ether shot up nearly 27% to close at $2,630. Bitcoin is now hovering around $38,500, following a session high of $39,900.
The rebound in the crypto market was underpinned by Tesla CEO Elon Musk, a figure that has become one of the most influential crypto market participants. Elon Musk tweeted late on Monday North American Bitcoin miners had committed to publishing data on their use of renewable energy. The step comes as a way to alleviate looming concerns over Bitcoin’s carbon footprint. “Potentially promising,” Elon Musk concluded in his Twitter post.