European and US futures are trading modestly higher while investors are keeping a close eye on the massive rout, which is taking place in the crypto market. The risk sentiment among investors and traders is still very much shaken after the fact that the S&P 500 index closed in negative territory and it has posted two consecutive weeks of losses. The major question is if the buying the dip mentality will continue to prevail and if it will then we are likely to see the US equity markets recovery their losses in no time. On the flip side, if investors have lost their appetite for riskier assets, then we have a long way to go.
The Dow Jones Industrial Average increased on Friday, while the S&P 500 and Nasdaq declined. As the three indices dropped from their session highs, the S&P 500 ended the day nearly breakeven.
The S&P 500 and the NASDAQ composite fell 0.08% and 0.48% respectively while the Dow Jones Industrial Average increased by 0.36%. The Russell 2000 index also increased by 0.34%. NASDAQ traded at lower volumes, on Friday, while NYSE traded at higher volumes.
Many blue chip stocks in the Dow index rose by more than 1%. JP Morgan (JPM), Boeing (BA), and Goldman Sachs (GS) were among the best performers. Apple (AAPL) dropped more than 1% after Tim Cook, Apple’s CEO, appeared in federal court to defend the company against Epic Games’ (the creator of Fortnite) allegations that Apple is running a monopoly through its App store.
The Dow Jones Industrial Average began to fall after President Joe Biden offered Republicans a deal on infrastructure. Republicans proposed reducing the infrastructure and job creation plan to $568 billion. However, the President responded by reducing the plan by a quarter to $1.7 trillion, which is significantly, more than the Republicans said they would support.
Apple, Boeing, JP Morgan, and Goldman Sachs
Tim Cook responded to Epic Games’ claims that the mobile phone giant is impeding other companies’ operations and operating a monopoly. He contended that Apple has its customers’ best interests at heart. He reiterated the importance of monitoring the App Store, which would otherwise become a “mess”. He claims that the company reviews approximately 100,000 applications per week and rejects nearly half of them.
Boeing is considering increasing production of the 737 Max, which has caused its stock to rise by more than 3%. JP Morgan’s stock price increased by nearly 1%, despite the fact that the treasury yield remained constant at 1.63%. Goldman Sachs’ stock price rose by 1.8% as well.
Bitcoin’s Decline In Prices
Bitcoin reached a high of $64,829 on April 16 and was trading at $49,000 on May 16. Yesterday, it fell to $31,179 before rising to $35,000 in the evening. The decline in prices came after the Chinese government declared a crackdown on transactions related to digital currencies. Elon Musk’s infamous tweets continued to influence the price of Bitcoin, with his most recent stating that “the true battle is between fiat & crypto.”
Asian Stock Markets
The Asia pacific markets traded mixed on Monday. The Nikkei 225 in Tokyo increased by 0.4%, while the Shanghai Composite Index slipped by nearly 0.35%. Hong Kong’s Hang Seng index tumbled 0.59%. The Seoul Kospi fell 0.29% while Australia’s ASX 200 advanced 0.08%.
The United States has been successful in controlling the outbreak of cases due to an effective vaccination programme. According to the CDC, as of Wednesday, approximately 39.2% of Americans had been fully vaccinated, with 49.2% have received at least one dose. Since January, the number of new cases reported per day has decreased by nearly 89%, with 13,541 new cases and 228 new deaths reported on May 23.