Market Update: Stocks Recover Slightly on Upbeat Earnings; Cryptocurrencies Give Back $30 Billion in Gains
U.S. stocks finished mostly higher on Wednesday, with the Dow snapping a five-day losing after Boeing shattered earnings expectations with its first-quarter report.
Meanwhile, cryptocurrencies corrected sharply lower as investors took profits following two weeks of steady gains.
Stocks Mostly Higher
Wall Street recovered from a sharp selloff after the open to trade mostly higher on Wednesday. The Dow Jones Industrial Average posted gains of 59.70 points, or 0.3%, to close at 24,083.83. The index was down 200 points earlier in the day.
Shares of Boeing Co (BA) surged 4.2% after the defense contractor posted much stronger than expected corporate earnings. The company delivered per-share earnings of $3.64 on revenue of $23.38 billion. Analysts in a consensus forecast called for EPS of $2.58 on $22.26 billion in revenue.
The broader S&P 500 Index advanced 0.2% to close at 2,639.40, with eight of 11 primary sectors reporting gains. Energy and telecommunication were the biggest gainers, rising 0.8% apiece.
Meanwhile, the technology-heavy Nasdaq Composite Index was back in negative territory by the close, falling 0.1% to 7,003.74.
The CBOE Volatility Index, commonly known as the VIX, edged down a mere 1% to close at 17.84. The so-called “fear index” touched a session high of 19.84 after the open.
Cryptocurrencies Correct Lower
The cryptocurrency market suffered a brisk selloff on Wednesday, as bitcoin and the altcoins shed as much as $50 billion.
Cryptocurrencies as a whole bottomed near $381 billion before recovering at $403 billion, according to CoinMarketCap. Despite the decline, daily trading volumes eclipsed $40 billion, rounding out one of the most active sessions in months.
Several major altcoins reported double-digit percentage losses, including Ripple’s XRP, which fell 11.7% to $0.83. Litecoin plunged nearly 10% to $148.25. Bitcoin cash, the market’s top performer over the past week , gave back nearly 9% to settle near $1,336.
Stellar, Cardano and IOTA were all down at least 10% on Wednesday.
Meanwhile, bitcoin hovered near $9,100 by the early evening, where it was down 3.6% from the previous close. However, its share of the total crypto market edged up to 38.3%.
Prior to the selloff, crypto assets had risen by a combined $180 billion in less than three weeks.
Coins failed to rally even after the CEO of Nasdaq said the stock exchange would be open to hosting cryptocurrencies in the future. In an interview with CNBC, CEO Adena Friedman said Nasdaq “would consider becoming a crypto exchange over time,” provided that appropriate regulations were in place to safeguard investors.
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.
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