Dow’s Sudden Rally Fails to Snap Five-Day Losing Skid; Bitcoin Hits $8,000 Again

Wall Street

The Dow and broader U.S. stock market drifted higher on Friday after President Trump offered China a pathway to resolving a Huawei controversy, a move that could prompt Beijing back to the negotiating table. Cryptocurrencies were unfazed by the trade war dilemma, with bitcoin (BTC) making yet another return to the $8,000 level.

Dow Recovers; S&P 500, Nasdaq Follow

All of Wall Street’s major indexes printed gains in the final session of the week, with the Dow Jones Industrial Average gaining as much as 180 points. It would later pare gains to settle up 95.22 points, or 0.4%, at 25,585.69.

Dow Jones Industrial Average

Despite the rally, the Dow couldn’t reverse all of its weekly losses. The blue-chip index has now declined in each of the last five weeks.

The broad S&P 500 Index of large-cap stocks gained 0.1% to close at 2,826.10. Seven of 11 primary sectors contributed to the rally, with financials leading the way higher.

The technology-focused Nasdaq Composite Index edged up 0.1% to finish at 7,637.01.

Trump Offers Lifeline on Huawei

President Trump has made it abundantly clear that he views Huawei, the Chinese telecom giant, as a “very dangerous” threat to the United States. But he is also willing to resolve the matter as part of a comprehensive trade deal with China.

“You look at what they’ve done from a security standpoint, from a military standpoint, it’s very dangerous,” Trump said on Thursday, according to CCN. “If we made a deal, I could imagine Huawei being possibly included in some form or some part of it.”

Huawei and roughly 70 affiliates were black-listed by the U.S. government last week, which would have made doing business with the Chinese telecom virtually impossible. That was before the Commerce Department granted a 90-day license for domestic smartphone companies and internet providers to continue working with the company.

Bitcoin Bounces Back

Bitcoin and its altcoin peers rebounded sharply on Friday, as news of Facebook’s entry into the digital asset space breathed new life into the market.

Crypto markets blew past the $250 billion market cap on Friday, with bitcoin gaining 3% to $8,042.47BTC/USD. Week-on-week, bitcoin has returned more than 10%.

 

All the coins in the top ten registered gains, with Litecoin (LTC) surging 12.3% to $98.93. EOS was up more than 8% to $6.42. Binance Coin (BNB) jumped almost 6% to reach $33.69.

As Hacked reported earlier, Facebook is planning to launch its new ‘GlobalCoin’ cryptocurrency in early 2020, and has identified about a dozen countries for the initial roll out. Read more: Crypto Markets Regain their Luster as Facebook Eyes ‘GlobalCoin’ Launch; Huge Bitcoin Rally Could Be Coming, but Only After Correction.

Very little is known about the new coin, though BBC News did report that testing will begin later this year. Facebook has not only expanded its blockchain unit, it has acquired a smart contract firm and approached major investors to fund the new initiative – all this within the last six months or so.

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. Charts via CoinMarketCap and Stockcharts.com. 

Author:
Chief Editor to Hacked.com and Contributor to CCN.com, 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