Despite some strong US economic numbers yesterday, US futures are not showing strong signs of optimism. It seems like traders just aren’t feeling confident about taking some risk, and they are enormously cautious with their approach. The US jobs data has brought some life for the dollar index, which has triggered a sell-off in the gold price. The shiny metal is off from its four and half a month high, with traders starting to book some profit off the table ahead of a long weekend.
In the cryptocurrency space, the crypto king isn’t showing much strength as well, and it is evident that we are likely to see more downward moves for Bitcoin today. The primary reason for this is that the price has rejected the 200-day SMA on the daily frame, and it has failed to stay above the 40K price level.
Stock Market Today: NASDAQ rallies as Big Tech rebounds
The Dow Jones Industrial Average, S&P 500, and Nasdaq all rose yesterday as Big Tech regained its footing. Apple, Microsoft, and Intel drove the Dow up nearly 200 points.
The S&P 500, the NASDAQ composite, and the Dow increased by 1.1%, 1.4%, and 0.5%. The Russell 2000 index, constituting small-cap stocks, also increased by0.7%. NASDAQ and NYSE traded at lower volumes as compared to previous days.
Nasdaq reached its 50-day moving average thanks to the rally in Big Tech. On May 10, the index fell by 2.6%, falling below the line for the first time since March.
Many Big Tech stocks in the Dow index rose by more than 1.5%. Microsoft (MSFT), Salesforce.com (CRM), Systems (CSCO), and Intel (INTC) were among the best performers. Apple (AAPL) increased by 1.3% and closed just below the 10-week moving average.
Microsoft, JP Morgan, Goldman Sachs, Amgen, and UnitedHealth Group
Microsoft reclaimed its 50-day line with a gain of 2.4%. From a flat base support point of 246.23, it’s back in the prospective support range. The support zone rises to 258.54 points.
Goldman Sachs (GS) and JPMorgan (JPM) are two other blue chips in the support range. Goldman Sachs is still in the support range from a 356.95 entry, up 0.6%. At 374.80, the support zone peaks. JPMorgan stays in the 5% support zone after rising 0.5% from a flat base of 161.79 points. The price range for support goes up to 169.88.
However, UnitedHealth Group (UNH) lost 0.2% and is now comfortably extended from a flat base support price of 368.05. Amgen (AMGN) plummeted 1.3%, breaking below its 50-day line. After a failed breakout, it’s back below a 256.70 support point for a cup with handle.
Bitcoins’ Rise In Prices
Federal Reserve Governor, Lael Brainard, promoted the idea of a digital currency backed by the Federal Reserve. She listed simplified cross-border transactions and fraud protection as benefits of embracing blockchain. Bitcoin value has risen dramatically in the last year, indicating the potential market of such a currency.
Grayscale Bitcoin Trust (GBTC) is currently trading near the 200-day moving average and has gained nearly 5%. GBTC’s stock dropped almost 24% last week.
Asian Stock Markets
Asian Pacific markets have also been surging today. The Nikkei 225 in Tokyo increased by 0.6%, and the Shanghai Composite Index increased by nearly 1.54%. Hong Kong’s Hang Seng index increased by 1.19%. The Seoul Kospi increased by 0.70%, while Australia’s ASX 200 advanced 0.65%.
The United States has been successful in controlling the outbreak of cases due to an effective vaccination programme. According to the CDC, as of Tuesday, approximately 39.3%of Americans had been fully vaccinated, with 49.4% having received at least one dose. Since January, the number of new cases reported per day has decreased by nearly 89%, with 19,866 new cases and 325 new deaths reported on May 24.