US Stocks Rise as Powell Warns of Further Policy Tightening
US stocks climbed on Friday following a drop in the S&P 500, as investors try to look past hawkish words coming from the Federal Reserve Chair Jerome Powell. Powell said Thursday that the central bank may still increase rates and isn’t yet convinced it has completed its objectives.
Holding the line on interest rates and providing comments, Powell said, “If it becomes appropriate to tighten policy further, we will not hesitate to do so.” He additionally cautioned the Fed against being misled by seeming promising inflation figures.
Cryptocurrency markets also surged, following a powerful gain on Thursday in Bitcoin’s price. Bitcoin and ether have both had several double-digit gains this week due to hype around the potential approval for spot ETFs, supply dynamics, and upcoming events such as the 2024 Bitcoin halving.
BlackRock on Thursday applied for a spot ether ETF, following the giant’s application for Bitcoin ETF approval by the SEC. Diogo Mónica, co-founder of Anchorage Digital, remarked in an email, “If act one is a spot Bitcoin ETF, then act two is a spot Ethereum ETF.”
Stock indexes in the US at the 9:30 am opening bell on Friday:
– S&P 500: 4,359.14, up 0.27%
– Dow Jones Industrial Average: 33,976.71, up 0.25% (+82.56 points)
– Nasdaq Composite: 13,574.82, up 0.42%
In other news, the 30-year Treasury yield rebounded on Thursday due to decreased demand in the most recent government bond auction, and Ether spiked 10% to its highest level in six months. David Einhorn also cautioned about the possibility of stocks decreasing and a recession arising if foreign wars increase gas prices.
And in commodities, bonds, and crypto:
– Oil prices climbed, with West Texas Intermediate at $76.68 a barrel, and Brent crude at $80.90 a barrel.
– Gold dipped by 0.98% to $1,950.50 per ounce.
– The 10-year yield moved down four basis points to 4.59%.
– Bitcoin increased by 1.80% to $37,016.
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