Market Update: U.S. Stocks Gain Amid Tariff Drama; Cryptocurrencies Stabilize After Crash
U.S. stocks advanced slightly on Monday, as markets shrugged off growing trade tensions between Washington and its powerful G7 allies. Meanwhile, cryptocurrency prices stabilized following an epic weekend crash.
Stocks Continue Higher
All of Wall Street’s major indexes finished in positive territory in the first session of the week. The large-cap S&P 500 Index advanced 0.1% to close at 2,782.00. Seven of 11 primary sectors contributed to the gains, with telecommunication services and consumer staples leading the rally.
The technology-focused Nasdaq Composite Index rose 0.2% to close at 7,659.93.
Dow industrials pared gains to finish flat at 25,322.31.
The CBOE Volatility Index, commonly known as the VIX, was little changed on Monday. Wall Street’s “fear index” settled at 12.35 on a scale of 1-100 where 20 represents the historic average.
Trade Tensions Rise
Trade tensions between the United States and its advanced industrialized peers reached a tipping point Sunday after President Trump pulled his country out of a joint G7 communique over “false statements” by Canadian Prime Minister Justin Trudeau.
Trump and his advisers blasted the Canadian leader for statements issued after the G7 summit in Quebec.
“There’s a special place in hell for any foreign leader that engages in bad faith diplomacy with President Donald J. Trump and then tries to stab him in the back on the way out the door,” trade adviser Peter Navarro told Fox News.
President Trump departed the G7 summit early en route to Singapore for a high-stakes meeting with North Korea’s Kim Jong-un. The face-to-face meeting is scheduled to go ahead on Tuesday.
Crypto Markets Absorb Heavy Losses
Digital currency prices shed $47 billion in market cap on Sunday, as investors gauged an ongoing regulatory probe by CFTC officials and a $40 million theft of South Korea’s Coinrail exchange. The decline was the biggest in three months and completely wiped out all gains made during April.
The cryptocurrency market bottomed near $290 billion on Monday and was last seen hovering around $294 billion, according to CoinMarketCap. Total market turnover amounted to just over $18 billion, which is higher than last week’s range.
All major cryptocurrencies were down at the start of the week, with EOS leading the decline. The fifth-ranked cryptocurrency by market cap is down more than 18% over the past 24 hours to trade at $11.11.
Bitcoin stabilized above $6,700 after piercing that key level briefly on Monday. BTC is currently valued at $6,780, where it was little changed.
Ethereum prices were down 2% at $521. Bitcoin cash fell more than 3% to trade at $928.
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.