Market Update: U.S. Stocks Rebound on Glimmer of Trade Optimism; Crypto Cooldown Continues
U.S. stocks shifted into positive territory Tuesday, as the benchmark indexes recovered from an early-week selloff thanks to a glimmer of trade optimism from President Trump. Cryptocurrencies continued trading on the backfoot as market activity cooled following a tumultuous start to the week.
Stocks Pare Steep October Decline
All of Wall Street’s major indexes closed in positive territory, more than offsetting the previous day’s brisk selloff. The Dow Jones Industrial Average added 431.72 points, or 1.8%, to 24,874.64. Chipmaker Intel Corp (INTC) was the best performer, extending last week’s post-earnings rally.
The much broader S&P 500 Index climbed 0.5% to 2,654.20. All 11 primary sectors finished higher, with energy, materials and consumer staples among the biggest gainers. Semiconductors, which trade under information technology, surged 4.6%.
The technology-heavy Nasdaq Composite Index advanced 1.6% to close at 7,161.65.
Despite the gain, stocks remain on track for their worst month since the financial crisis. The Dow and S&P 500 have already given up gains for the year, while the Nasdaq has trimmed its 2018 return to just 3%.
Trump Offers Trade Hope
U.S. President Donald Trump has high expectations for his upcoming meeting with Chinese counterpart Xi Jinping, as the world’s biggest superpowers look to resolve an ongoing trade dispute. In an interview with FOX News, Trump said a “great deal” with China is possible but warned that a new round of tariffs was on the table should both sides fail to reach an agreement.
The Trump administration has already implemented import duties on some $250 billion worth of Chinese goods. The president says duties on a remaining $267 billion in Chinese products would be prepared should talks break down next month.
Trump and Xi are scheduled to meet on the sidelines of the Group of 20 Summit in Buenos Aires, Argentina on Nov. 30.
Tariffs have not only put a damper on global economic growth, they have triggered a slew of disappointing earnings calls from industrials, chipmakers and other factory-driven segments.
Crypto Markets Rangebound
The cryptocurrency arena offered little progress on Tuesday, as bitcoin and the major altcoins hovered within an extremely narrow range. The cryptourrency market capitalization dipped slightly to $202.7 billion, according to latest available data. Daily trade volumes on digital currency exchanges fell nearly 13% to $10.3 billion, according to CoinMarketCap.
Bitcoin traded within a $58 range on Bitfinex, eventually settling at $6,338. Ethereum, the second largest cryptocurrency by market cap, saw a daily trade range of just $3. It was last spotted trading around $197.
ETH received a vote of confidence from J.P. Morgan Chase & Co after the bank announced plans to tokenize gold using a platform built on top of the Ethereum blockchain. “We are big believers in Ethereum,” said Umar Farooq, J.P. Morgan’s head of blockchain initiatives.
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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