U.S. Stocks Extend Relief Rally Ahead of Trump National Address; 51% Attack Rattles Crypto Community
U.S. stocks advanced sharply on Tuesday, as optimism over China trade talks lifted investors’ sentiment ahead of a late-evening address by President Trump. Crypto markets experienced a slight pullback late in the day as investors grappled with the aftermath of a 51% attack on the Ethereum Classic network.
Stocks Rise Again
Wall Street’s major indexes recorded their third consecutive advance on Tuesday. The large-cap S&P 500 Index climbed 1% to 2,574.41, having now gained in eight of the past nine sessions.
Ten of 11 primary sectors finished in positive territory, with communications services and discretionary shares among the biggest gainers. Industrials and utilities also finished sharply higher.
Financials stocks lagged the broader market, with banks and diversified finance each falling at least 0.1%.
The Dow Jones Industrial Average rose 256.10 points, or 1.1%, to close at 23,787.45. Shares of Apple Inc. (AAPL) rose 2%, bringing the company’s total market capitalization to $717 billion.
The Nasdaq Composite Index finished 1.1% higher at 6,897.00.
Trump Goes Prime-Time
President Donald Trump will deliver a prime-time address to the nation later tonight to garner public support for a proposed border wall. The Trump administration is seeking upwards of $5 billion to fund a steel barrier along the Mexican border but Democrats in Congress have refused to grant the appropriations. This has resulted in a prolonged budget impasse that has put several government agencies on hold for more than two weeks.
According to The Wall Street Journal, Trump is unlikely to declare a national emergency at the southern border in his televised address from the oval office, which is scheduled for 9:00 p.m. ET. Instead, the president will make his case for increased border protection by highlighting the movement of illegal drugs across the Mexican border.
Ethereum Classic Experiences 51% Attack
Coinbase has suspended trading in Ethereum Classic (ETC) after the exchange identified at least a dozen attacks targeting the network. At least 12 chain reorganizations affecting 219,500 ETC have been identified so far. The attack allowed the perpetrators to control more than half of the ETC network, which gives them the ability to falsify transactions without repercussion.
The value of ETC fluctuated sharply throughout the day and is currently down 2.1% at $4.95.
The cryptocurrency market as a whole wasn’t directly impacted by the attack, though most major assets were trading off their session highs by late afternoon. Nevertheless, bitcoin (BTC/USD) maintained its position north of $4,000 while Tron (TRX/USD) held on to double-digit gains. The combined value of cryptocurrencies as a whole edged down to $136.5 billion from a high near $139 billion earlier in the day.
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.