Stocks rebound as bitcoin bounces, tech shares gain
Stocks rose on Tuesday, boosted by gains in bitcoin and technology names, as traders tried to recover from a weak start to December Trading.
The Dow Jones Industrial Average gained 137 points, or 0.3%. The S&P 500 climbed 0.3%, while the Nasdaq Composite advanced 0.4%.
Bitcoin rose 3.8% Tuesday, recouping some of its losses from the prior day. Tech players linked to the artificial intelligence trade supported the broader market as well, with names like Oracle reversing course from the previous session’s losses. AI chip darling Nvidia increased nearly 2%.
The major U.S. indexes began the week in the red, ending five-day win streaks on Monday. Risk-off sentiment has pressured the bull market in recent weeks as worries of persistent inflation, elevated valuations and returns on artificial intelligence spending weigh on investors.
The slump in cryptocurrencies intensified during the previous session as bitcoin recorded its worst day since March. Crypto stocks Coinbase and Robinhood each declined. November’s standout “Magnificent Seven” stock, Google parent Alphabet, took back some gains. Other tech heavyweights like Palantir also declined. Gold prices and bond yields rose, meanwhile.
Although November was a downbeat month for tech stocks, and saw both the S&P 500 and 30-stock Dow eke out small gains, investors are watching for catalysts that could lead to a year-end rally.
Traders are currently optimistic that the Federal Reserve will announce an interest rate cut on Dec. 10 at conclusion of its next policy meeting. Markets are pricing a more than 87% chance of a cut during the upcoming meeting, which is much higher than the odds from mid-November, according to the CME FedWatch tool.
Source : Cnbc.com
