Stocks rise, Bitcoin up 6%- Market update
- Nasdaq is up more than 3%, while Bitcoin has jumped above $30k after a brutal descent this week.
- Wall Street eyes a strong end to a tough week.
- The market remains apprehensive despite Fed's likelihood of going for a 0.5% and not 0.75% rate hike in June.
US stocks came out of the blocks strongly on Friday, with major gains across all the indexes helping to bolster hope of a better end to a very volatile week.
In early trading, the S&P 500 is up more than 2%, while the Nasdaq Composite has surged more than 3.1%. The Dow Jones Industrial Average had added nearly 400 points, up more than 1.3%.
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While the market is still held in the throes of rising inflation and fears of what an aggressive Fed tightening means, Friday’s relief comes as investors now begin to look at the potential of two rate hikes of 0.5% each in the next Fed meetings. Earlier jitters have been on what a 0.75% rate hike would do to already brutalized markets.
On Thursday, the S&P 500 and Dow closed lower, the benchmark index nearly hitting bear territory. The Dow had posted its sixth-straight losing day.
Global market rebound
European and Asian markets were also higher on Friday, with the pan-European Stoxx 600 index up nearly 1.9%. Uk’s FTSE 100 was up 2.3% while in Asia, Japan’s Nikkei closed 2.64% higher.
Elsewhere in the market, the 10-year Treasury yield continues to hover above 2.9%, with 9 basis point gains on Friday.
Gold has shed 0.6% to $1,813 per ounce while Bitcoin has moved higher alongside stocks to currently trade at around $30,898. The benchmark crypto is nearly 6% higher in the past 24 hours.