Dow Deflates on U.S.-China Trade Talks, Possible Government Shutdown; Cryptocurrencies See Large Volume Spike

The U.S. stock market traded mixed on Monday, with the Dow giving up triple-digit gains as investors shifted their focus to U.S.-China trade talks and a looming government shutdown in Washington. Cryptocurrencies enjoyed some early momentum thanks to an upsurge in trading volume.

Dow Gives Up Gains

After a strong start, the Dow Jones Industrial Average quickly deflated on Monday. By the close, it was down 53.22 points, or 0.2%, at 25,053.11. The blue-chip index rose by as much as 190 points during the morning session.

The broader S&P 500 Index gave back most of its gains and eventually settled at 2,709.80, where it was up 0.1%. Seven of 11 primary sectors finished higher, led by industrials and energy.

The tech-focused Nasdaq Composite Index also pared gains to finish up 0.1% at 7,307.90.

Markets Brace for Pivotal Week

With U.S.-China trade talks already underway in Beijing, investors are keeping close tabs on the news for any potential sign of breakthrough. Both countries are racing to get a deal done before a self-imposed deadline of Mar. 1. That’s the day that the 90-day truce between presidents Trump and Xi expires.

Market participants are also monitoring the budget debate in Congress for any information on a deal that would keep government open past the Feb. 15 deadline. Nearly three weeks ago, President Trump and congressional leaders agreed on a stopgap spending bill that would fund government agencies until Friday. At last check, Trump and Democrats were still at odds over border-security funding. More on this story from CCN.

The economic calendar will offer up crucial data points this week, beginning on Wednesday with the latest U.S. consumer inflation report. On Thursday, the U.S. government will report on producer prices and retail sales. The week concludes with the latest industrial production figures.

Cryptocurrencies Mixed in High-Volume Trade

Cryptoassets traded mixed-to-higher on Monday, as volumes picked up briskly following the weekend lull. The combined value of all cryptocurrencies peaked at $123.2 billion, the highest in over three weeks. At the time of writing, the total market was worth $121.3 billion.

The modest uptrend was accompanied by a sizable increase in trading volume. Market turnover rose some 15% to $21.1 billion, according to CoinMarketCap.

After an initial spike toward $3,700, bitcoin’s price consolidated in the mid-$3,600 range. Its share of the overall market slipped to 52.8%.

Ethereum reported a gain of 2.3%, moving up to $121.64. Binance Coin maintained its assertive posture, climbing 3.6% to $9.53. Read more: As Crypto Rally Cools, Binance Coin Remains Buoyant; CEO Changpeng Zhao Offers Encouraging Message to New Traders.

Dash took the reigns as the market’s top performer on Monday. The cryptocurrency rose nearly 10% to $80.92 after Crypto Emporium, an online retailer, announced full integration of Dash payments. Related: DASH Price Analysis: The Bulls Awaken Following News of Further Adoption

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.

Chief Editor to and Contributor to, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi