Daily Update: U.S. Stocks Swing Higher After Volatile Open as Bitcoin, Ripple Lead Crypto Rally
Wall Street overcame a volatile open to finish higher on Monday, with the Dow rallying more than 300 points following President Trump’s renewed pledge to implement tariffs on key commodity imports.
Stocks Stage Recovery
After a rocky start, U.S. stocks traded higher across the board on Monday. The Dow Jones Industrial Average climbed 336.70 points, or 1.4%, to close at 24,876.76.
The broader S&P 500 Index added 1.1% to finish at 2,720.94, with all 11 sectors contributing to the rally.
Meanwhile, the technology-laden Nasdaq Composite Index rose 1% to 7,330.71.
Utilities, financials and information technology stocks were the biggest advancers on Monday.
A measure of 30-day volatility known as the CBOE VIX fell more than 4% to close at 18.67 on a scale of 1-100, where 20 reflects the historic mean. The volatility gauge surged past 20 last month and for a brief moment touched a high of 50. A VIX reading that high normally signals recession-style volatility in the market.
Trump Not Backing Down
President Donald Trump made it clear Monday he will not retreat from his pledge to impose tariffs on steel and aluminum imports even as Republican lawmakers voiced concerns about the proposed plan.
Republican House Speaker Paul Ryan is concerned that the proposed tariffs could lead to an escalating trade war, spokeswoman AshLee Strong said in a statement.
“We are extremely worried about the consequences of a trade war and are urging the White House to not advance with this plan,” the statement read, as quoted by Bloomberg. “The new tax reform law has boosted the economy and we certainly don’t want to jeopardize those gains.”
President Trump was asked about the statement in a White House press conference on Monday, where he flat-out declared “we’re not backing down.”
On Friday, Trump announced levies of 25% and 10% on steel and aluminum, respectively, but didn’t specify which countries or products would be affected.
Cryptocurrencies See Gradual Recovery
Bitcoin, Ripple and several other leading cryptocurrencies traded higher on Monday, as calm returned to the digital asset class. The market peaked at $474.4 billion, the highest in almost two weeks.
Bitcoin’s share of the total crypto market has risen to around 42% on lower speculative bets for the lesser known altcoins.
While cryptocurrencies continue to trade at a fraction of their all-time highs, capital is slowly returning to the market on regulatory optimism and mainstream business adoption. Efforts are also in place to strengthen the transaction capacity of major coins, which could make them more viable from the perspective of consumer purchases.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.