Market News by OnEquity

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103

Dollar Gains on Cut in Rate Expectations, Pound Falls on Inflation

The U.S. dollar rose on Wednesday, trading near two-month highs on expectations that the Federal Reserve will slightly cut interest rates this year, while the pound slipped after positive inflation data.

Dollar Benefits from Expectations of a Rate Cut

Recent data indicating a resilient economy, combined with slightly higher-than-expected inflation in September, has led market participants to reduce their bets on a sharp cut in U.S. interest rates.

Adding to these expectations on Tuesday were comments from Atlanta Fed President Raphael Bostic, who stated that he anticipated only one more interest rate cut of 25 basis points this year when he updated his forecast for last month’s Fed meeting.

Most market participants expect two more cuts this year, totaling 50 basis points, and traders are currently betting with a 92% probability on a 25-basis-point cut at the next Fed policy meeting on Nov. 7, with an 8% chance of no change, according to CME Group’s FedWatch tool.

Pound Falls After Inflation Release

In Europe, GBP/USD fell 0.5% to 1.3003 after data revealed that U.K. inflation dipped more than expected in September, setting the stage for a possible rate cut in the coming month.

The U.K. inflation rate dropped to 1.7% year-over-year, down from an estimated 1.9% and from 2.2% the previous month.

This marks the first time it has fallen below the Bank of England’s 2% target since April 2021 and follows earlier data this week showing that U.K. wages grew at the slowest pace in more than two years.

“The data is unambiguously dovish for the Bank of England and paves the way for rate cuts at the remaining two meetings this year (November and December),” ING analysts stated in a note.

“Given Governor Andrew Bailey’s comments earlier this month suggesting that the BoE may accelerate the pace of easing, markets may start to consider the possibility of a 50-basis-point rate cut in November.”

EUR/USD Edges Lower Ahead of ECB Meeting

EUR/USD was down 0.1% to 1.0882 ahead of Thursday’s European Central Bank (ECB) meeting.

The ECB has already cut rates twice this year, and financial markets have almost fully priced in a 3.5% deposit rate cut this week.

“EUR/USD is predominantly driven by external factors. The substantial drop in oil prices has reduced the potential for further downside from market influences, but we continue to believe that positioning ahead of the U.S. election may favor a weaker EUR/USD,” ING mentioned.

Yuan Softens Amid Weekly Losses

USD/CNY fell slightly to 7.1179, with the yuan maintaining its losses for the week as sentiment worsened over China’s plans for more stimulus.

China’s Finance Ministry announced a series of fiscal measures to boost growth, although it did not provide specifics on the timing or scale of the estimated measures, raising uncertainty about their effectiveness.

USD/JPY Nears Resistance Level

USD/JPY rose 0.2% to 149.43, approaching the resistance level of 150.

Consumer inflation data due later in the week is expected to provide more insight into the Bank of Japan’s plans regarding potential further rate hikes.

104

U.S. Stock Markets Steady After Tech Sector Losses, Earnings in Focus

U.S. equity markets stabilized on Wednesday after losses in technology stocks, driven by weak results from leading chipmaker ASML (ASML), pulled Wall Street away from its all-time highs.

Losses in the semiconductor sector hit Wall Street on Tuesday, with the NASDAQ Composite down nearly 1%, while both the S&P 500 and Dow Jones Industrial Average fell 0.8%, pulling back from their record highs.

The weakness followed semiconductor equipment maker ASML’s (ASML) decision to cut its full-year estimates due to weak demand for non-artificial intelligence chips. ASML’s stock dropped 16% on Tuesday and continued to decline in premarket trading on Wednesday.

Chipmakers were also rattled by reports that the U.S. government was considering limiting the sale of artificial intelligence-related chips to certain countries, a scenario that could hurt sales.

Nvidia (NVDA) fell 4.5%, while rivals AMD (AMD) and Intel (INTC) dropped about 5.2% and 3.3%, respectively.

Q3 Earnings Season Continues

Third-quarter earnings season continues this week. More results are expected on Wednesday, with Morgan Stanley (MS) rounding out banking sector earnings, following positive results from Goldman Sachs (GS), Citigroup (C), and Bank of America (BAC).

Abbott Laboratories (ABT) and U.S. Bancorp (USB) will also report their earnings on Wednesday, while Netflix (NFLX) is set to release its figures on Thursday.

Next week, earnings season will ramp up with reports from several key tech companies, including Alphabet (GOOGL) and Tesla (TSLA).

Beyond earnings, investors are also focused on speeches from several Federal Reserve officials, amid increasing speculation that interest rates may fall at a slower-than-expected pace.

Oil Stabilizes After Losses

Oil prices stabilized on Wednesday after recent sharp losses, as traders weighed signs of a potential easing of tensions in the Middle East and concerns about slowing demand growth from major oil exporter China.

Weak economic data from China has also added pressure, and both the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) have revised their demand growth forecasts for the remainder of 2024 downward.

105

Today’s stocks to watch: ASML, Morgan Stanley and Novocure

Key points:

  • Luxury stocks, including LVMH, suffer declines on challenging global markets
  • Morgan Stanley’s earnings beat estimates, outperforming among stocks
  • Novocure wins FDA approval, which boosts its shares considerably

LVMH faces challenges in global markets

LVMH (MC): LVMH, owner of Louis Vuitton, reported disappointing results and said it faces challenges in most markets. The French company’s shares, as well as other European luxury stocks, declined sharply.

Morgan Stanley beats expectations with earnings

Morgan Stanley (MS): The bank reported quarterly results that beat expectations, with outstanding growth in investment banking revenues. Morgan Stanley shares rose nearly 2.5% in pre-market trading, boosting investor confidence in its results.

Equifax, PPG Industries and Alcoa results

Equifax (EFX), PPG Industries (PPG) and Alcoa (AA) are expected to release their results after the markets close in the U.S. Forecasts are focused on their performance, which could shape investors’ perception of the sector as a whole.

Asml and the fall of the semiconductor sector’s stocks

ASML (ASML): The semiconductor equipment builder continues its slide, with its Amsterdam-listed stocks down around 4%. The fall adds to that of other global semiconductor stocks, such as TSMC and Tokyo Electron, which also showed unfavorable performance.

Intel and security concerns in China

Intel (INTC): The Cybersecurity Association of China said Intel products sold in China should undergo a cybersecurity review, saying the U.S. manufacturer poses a threat to national security. This has resulted in a drop of about 1.5% in Intel stocks in the premarket.

Novocure celebrates the approval of its lung cancer treatment

Novocure (NVCR): Novocure shares rose about a third in after-hours trading after the U.S. Food and Drug Administration cleared its Optune Lua portable lung cancer treatment. The clearance is a major step forward for the company and could strengthen its position in the market.

J.B. Hunt surprises with better-than-expected revenues

J.B. Hunt (JBHT): Transportation and logistics company J.B. Hunt announced a drop in quarterly revenue, but less than analysts expected. As a result, the stock rose nearly 7% in the premarket on the back of a solid performance versus market expectations.

106

Elon Musk’s Tesla mobilizes 760 million in Bitcoin, raising fears of a massive liquidation

The cryptocurrency community is abuzz with rumors following Tesla’s transfer of a sizable portion of its Bitcoin (BTC) holdings. More than 11,500 BTC were transferred to wallets linked to the electric car giant to unknown addresses, raising concerns about a possible liquidation.

However, despite these transactions, there are no clear indications that Tesla intends to liquidate its assets. According to Arkham, the target wallets are newly created and not tied to any cryptocurrency exchange, suggesting that these moves could be strategic in nature.

Tesla sold Bitcoin on the OTC market?

The BTC in play, valued at around $760 million, nearly emptied Tesla’s cryptocurrency reserves, leaving only around $8 in its original wallets. This activity comes on top of two years of minimal movements.

Throughout history, Tesla’s engagement with Bitcoin has experienced several ups and downs. Initially, after buying $1.5 billion in Bitcoin in 2020, the electric car company sold approximately 10% in early 2021.

By July 2022, it had moved about 75% of its remaining BTC as market values fell from their peak in November 2021.

Currently, Tesla remains the fourth largest Bitcoin holder among publicly traded U.S. companies. Only MicroStrategy and mining companies Marathon Digital Holdings and Riot Platforms hold more.

The nature of Tesla’s recent trading suggests that they may be preparing for an over-the-counter (OTC) transaction. However, others also see this development as not entirely bearish.

“There is no evidence yet that this is an OTC trade. Even if it was, that means someone else bought it, so it’s not all bearish. Who knows,” says Sir Doge of the Coin.

Tesla’s involvement with Bitcoin goes beyond buying and selling. In 2021, it accepted Bitcoin payments for its vehicles for a short period.

However, it reversed this decision two months later, citing the environmental impact of Bitcoin mining. Its CEO, Elon Musk, has indicated that Tesla could return to accepting Bitcoin if mining becomes more environmentally friendly.

Despite the market’s initial trepidation, the Bitcoin price is holding steady, currently at around $67,000. This resistance is supported by significant inflows into spot Bitcoin ETFs.

On the day Tesla moved its BTC, spot Bitcoin ETFs booked inflows totaling $371 million. BlackRock’s iShares Bitcoin Trust fund alone raised $288.84 million, indicating strong investor appetite.

107

Dollar Gains on Cut in Rate Expectations, Pound Falls on Inflation

The U.S. dollar rose Monday, maintaining its recent strength as the election for U.S. president approaches and polls point to a growing likelihood that former President Donald Trump will be the winner.

Dollar Boosted by Confidence in Trump

The dollar remained near its highest levels in over two months, bolstered by growing confidence that U.S. interest rates will decrease at a slower pace than initially expected. This is further supported by recent data showing that the U.S. economy remains healthy.

According to the CME FedWatch tool, traders are largely expecting a 25 basis point rate cut by the Federal Reserve in November.

The dollar has also been buoyed by increasing expectations that Donald Trump will defeat Kamala Harris in the 2024 presidential election, now less than two weeks away.

It is considered possible that the tariff and tax policies proposed by Republican candidate Donald Trump could keep U.S. interest rates high and apply downward pressure on the currencies of trading partners.

“Currency markets appear to be positioning for a Trump victory in next month’s U.S. presidential election. October seems to have been a good month for Donald Trump in opinion polls, and the dollar is rising across the board,” ING analysts mentioned in a note.

Euro Hit by Weaker PPI in Germany

In Europe, EUR/USD was down about 0.1%, trading at 1.0850, after German producer prices fell more than expected in September, declining by 1.4% year-over-year instead of the estimated 1.0%.

European Central Bank policymakers are likely to cut the policy rate to a neutral level between 2% and 3%, although further cuts may be necessary if inflation continues to fall, ECB policymaker Gediminas Simkus mentioned on Monday.

“If disinflation processes take hold… it is possible that rates will be lower than the neutral level,” Simkus, governor of the Lithuanian central bank, told reporters in Vilnius.

GBP/USD fell 0.2%, reaching 1.3022, after data revealed that British property sales prices rose just 0.3% during October, well below the average monthly increase of 1.3%, according to property website Rightmove (RTMVY).

This, coupled with the unexpected drop in services inflation last week, signals that further rate cuts by the Bank of England are likely in the coming months, as the bank seeks to stimulate the U.K. economy.

Yuan Declines After PBoC Rate Cut

USD/CNY rose 0.2% to 7.1120 after the People’s Bank of China cut its benchmark lending rate by 25 basis points.

Over the past month, China has announced its most aggressive round of stimulus measures, including monetary and fiscal policies aimed at boosting sluggish growth.

USD/JPY rose about 0.3%, reaching 149.91, though it remained below the 150 level after briefly surpassing it the previous week for the first time since early August.

108

U.S. Stock Markets Plummet Amid a Flood of Third-Quarter Results

U.S. equity markets and stock indices were slightly lower on Monday, consolidating near record levels, with attention focused on a series of key results from the technology sector.

Positive results from banks and technology companies in the previous week had driven several of Wall Street’s major indices to record highs, with the S&P 500 and the Dow Jones both posting record highs on Friday. This marked a sixth straight week of gains, the best streak of the year for both indices.

However, momentum appears to be stalling somewhat, as anticipation of both the upcoming Federal Reserve meeting and the tight U.S. presidential election keeps investors cautious. High valuations for U.S. equities have also increased the likelihood of near-term losses.

Key Tech Results of the Week

Tesla (TSLA) will be the most prominent company reporting results this week, with the electric car maker’s earnings under the spotlight following its disappointing robotaxi unveiling earlier this month.

Tesla also missed expectations for third-quarter deliveries, which is expected to weigh on its quarterly earnings when it reports on Wednesday.

Several chipmakers will also release results this week. ASML (ASML) and TSMC (TSM), two key players in the sector, gave mixed signals regarding demand. Texas Instruments (TXN), Western Digital Corporation (WDC), and Lam Research Corp (LRCX) are among the relevant stocks reporting, while in the broader technology sector, IBM (IBM) will also announce its results this week.

Outside the technology sector, this week will feature earnings reports from major defense companies, including RTX Corp (RTX), Lockheed Martin (LMT), L3Harris Technologies (LHX), General Dynamics (GD), and Northrop Grumman (NOC).

Telecommunications giants T-Mobile US (TMUS), Verizon Communications (VZ), and AT&T (T) are also set to report earnings.

Aircraft manufacturer Boeing (NYSE) will report its results on Wednesday, with a particular focus on its cash position as the company faces its first significant strike in over a decade.

A Quiet Week for Economic Data

It will be a relatively quiet week on the U.S. economic calendar, although investors will receive updates on the housing sector with reports on new and existing home sales. Additionally, durable goods orders, consumer confidence, and initial jobless claims will be released.

On Wednesday, the Federal Reserve will release its Beige Book, a report on economic conditions across the central bank’s 12 districts.

Market participants will also hear from several regional Federal Reserve officials throughout the week, including Minneapolis Fed President Neel Kashkari, Kansas City Fed President Jeffrey Schmid, San Francisco Fed President Mary Daly, Philadelphia Fed President Patrick Harker, and Richmond Fed President Thomas Barkin.

Oil Shows Signs of Rebounding

Oil prices rose on Monday, recovering from last week’s steep losses, as energy traders weighed concerns over weak demand from major importer China and the evolving conflict in the Middle East.

Data released on Friday indicated that China’s economy grew in the third quarter at the slowest pace since early 2023, although September consumption and industrial production exceeded forecasts.

Uncertainty remains over how the conflict in the Middle East will develop and whether it will significantly impact oil supply in the region.

109

Market Highlights for the Week: Tesla, IMF, and Oil

Tesla will be the first of the “Magnificent Seven” to report in the corporate earnings season. Global financial leaders will meet in Washington, and oil prices remain volatile. Here’s a look at what’s happening in the markets this week.

Tesla Reports Its Results

As earnings season picks up momentum, Tesla (TSLA) will be one of the first major U.S. tech companies to release its results, which are expected on Wednesday after the close of the trading session.

Tesla’s stock has faced losses this month following the unveiling of its eagerly awaited robotaxis, which left some investors disappointed due to the lack of precise details. So far, Tesla shares have underperformed the S&P 500 Index (SPY), with a loss of approximately 11%, compared to the index’s 22.5% gain.

While investors have become more optimistic about the U.S. economy, thanks to strong jobs reports and the Fed’s 50 basis point cut last month, a weak earnings report from Tesla could reignite concerns about the valuations of tech stocks.

Elevated valuations— the S&P 500 trades at nearly 22 times forward earnings—combined with high corporate earnings forecasts and potential volatility from the upcoming U.S. presidential election could leave stocks vulnerable to a correction.

Gains in Semiconductors

This week, corporate earnings will take center stage, with results from Texas Instruments (TXN) and equipment company Lam Research (LRCX) being closely watched after a volatile week for the semiconductor sector.

Chip stocks fell on Tuesday after Europe’s largest tech company, ASML (ASML), forecasted lower-than-expected sales and bookings for 2025. However, the sector bounced back on Thursday after TSMC (TSM), a key producer of advanced chips used in artificial intelligence, announced a 54% increase in quarterly profit, surpassing expectations.

Semiconductor and related equipment stocks account for 11.5% of the S&P 500’s total weight.

Other companies reporting earnings next week include Coca-Cola (KO), IBM (IBM), General Motors (GM), and Verizon (VZ).

U.S. Economic Data

A relatively quiet week is expected on the U.S. economic calendar. However, investors will get updates on the housing sector through new and existing home sales reports. Additional data releases include durable goods orders, consumer confidence, and initial jobless claims.

On Wednesday, the Federal Reserve will release its Beige Book, a report on economic conditions across the central bank’s 12 districts.

Market participants will also have the opportunity to hear from several Fed officials throughout the week, including Minneapolis Fed President Neel Kashkari, Kansas City Fed President Jeffrey Schmid, San Francisco Fed President Mary Daly, Philadelphia Fed President Patrick Harker, and Richmond Fed President Thomas Barkin.

IMF Meetings

Central bank chiefs and finance ministers from around the world will gather in Washington starting Monday for the annual meetings of the International Monetary Fund (IMF) and the World Bank. They will discuss how countries can navigate an environment of low growth and high indebtedness.

Last week, the IMF warned that global public debt is estimated to exceed $100 trillion by the end of this year, driven by the United States and China.

The IMF noted that high debt levels could provoke adverse market reactions and limit countries’ ability to respond to economic shocks.

Meanwhile, Russian President Vladimir Putin will host a summit of BRICS group leaders starting Tuesday, as the Kremlin seeks support in its confrontation with the West. Russia says that leaders from Brazil, India, China, South Africa, Egypt, the United Arab Emirates, and Saudi Arabia—who collectively account for a third of global economic output—will attend.

Oil Prices

Oil prices remain under pressure after a roughly 7% decline last week, as energy traders assess weak demand from major importer China and the ongoing conflict in the Middle East.

Data released on Friday showed that China’s economy grew at its slowest pace since early 2023 in the third quarter, although September consumption and industrial production beat estimates.

Analysts noted that economic weakness in China, coupled with the shift toward electric vehicles, is dampening demand prospects for oil.

At the same time, uncertainty persists over how the Middle East conflict will evolve. U.S. President Joe Biden said on Friday that there is a possibility of a deal between Israel and Iran that could temporarily end the conflict in the region.

However, the Lebanese militant group Hezbollah stated on Friday that it was entering a new phase of escalation in its fight against Israeli troops, dashing hopes that the death of Hamas leader Yahya Sinwar would lead to an end to the war.

110

Today’s Stocks to Watch: Boeing, Kenvue, and Humana

Key points:

  • Humana stock increased due to rumors of a possible acquisition by Cigna.
  • Starboard Value bought a stake in Kenvue, boosting its stock value.
  • Boeing reached an agreement in principle that could end the strike.

Boeing (BA) Moves Toward Ending the Strike

Boeing has reached a tentative agreement with the machinists’ union, which could end the strike that has paralyzed much of its production. Boeing shares rose more than 3% in pre-market trading, reflecting the positive impact of the agreement on its valuation. This move is crucial for the company, which had experienced significant delays in its production line due to the strike. Investors are closely watching developments in the negotiation, as it could have long-term implications for Boeing’s operational strength.

Kenvue (KVUE) Rallies After Starboard Value’s Stake Purchase

Kenvue saw a gain of more than 5% in pre-market trading after Starboard Value, an activist investment fund, bought a sizable stake in the company. Starboard intends to implement changes to boost Kenvue’s share price. Kenvue, which spun off from Johnson & Johnson last year, has sparked optimism among investors, who hope these proposed changes will improve the company’s near-term profitability. Kenvue remains a key player in the consumer products sector, and this development could mark a turning point in its financial trajectory.

Humana (HUM) Rises on Strong Cigna (CI) Acquisition Rumors

Humana is up more than 4% in pre-market trading, following Bloomberg reports that Cigna Group has revived its efforts to acquire its rival. These rumors have generated strong interest in Humana shares, as a merger with Cigna could solidify its position in the health insurance market. Investors are closely watching for progress in these talks, as a potential buyout could reshape the competitive landscape of the U.S. healthcare sector.

Walmart (WMT) Reaches Opioid Settlement

Walmart has announced a preliminary settlement of three shareholder lawsuits related to opioid distribution. While the immediate effect on the stock was minimal, this settlement is a significant breakthrough in the company’s ongoing legal battles. Resolving these lawsuits could relieve Walmart of substantial legal burdens, allowing the company to focus its resources on growth and expansion.

Upcoming Earnings Reports

SAP (SAP) is one of the companies set to release its results after the market closes. Other companies reporting earnings this week include General Motors (GM) on Tuesday, Tesla (TSLA) and IBM (IBM) on Wednesday, and United Parcel Service (UPS) on Thursday. Investors will be closely watching these reports, as they could provide a clearer picture of these companies’ performance in a challenging economic environment.

111

Dollar Hits Record Highs, Political Concerns Drive Safe-Haven Demand

The dollar reached new highs on Wednesday as uncertainty over U.S. interest rates and the upcoming presidential election continued to support safe-haven demand.

Risks Point to Dollar Bullishness

The dollar has reached its highest level since early August as positive economic data has reduced expectations of aggressive interest rate cuts by the Federal Reserve.

According to CME FedWatch, traders rate the likelihood of a 25 basis point cut in November at 85.9%, while the probability of rates remaining unchanged stands at about 14.1%.

This shift in expectations has led to a rise in U.S. Treasury yields, with the 10-year yield hitting its highest level in three months this week.

Also supporting the dollar are growing expectations that Republican candidate Donald Trump could win the U.S. presidential election early next month, as his protectionist policies are seen as favorable for the dollar.

“Key market factors continue to support the greenback. We could see some momentum fade today, but the balance of risks remains skewed to the upside ahead of the U.S. election,” analysts at ING noted in a report.

More European Central Bank Cuts on the Way

In Europe, EUR/USD was down 0.1% to 1.0785, with the euro weakening amid rising expectations that the European Central Bank will take a more aggressive approach to rate cuts due to the uncertain growth outlook.

The ECB has already cut rates three times this year, and markets expect further monetary easing at each of its upcoming meetings well into next year.

On Tuesday, the International Monetary Fund stated that Germany’s economy, the largest in the eurozone, will stagnate this year, trimming its growth forecast from 0.2% to 0%.

In addition, inflation in Europe is easing and is likely to return to the 2% target faster than expected, according to ECB President Christine Lagarde on Tuesday, further supporting the case for additional rate cuts.

GBP/USD was down 0.1% to 1.2969 ahead of a speech by Bank of England Governor Andrew Bailey, which could offer more clues on the future of monetary policy.

Bailey said in an interview earlier this month that the central bank could move more aggressively to cut interest rates if inflationary pressures continue to weaken.

Since then, the U.K. inflation rate has dropped to 1.7% year-over-year, marking the first time it has fallen below the bank’s 2% target since April 2021.

Yen Falls Ahead of General Election

USD/JPY rose 0.9% to 152.38, breaking above the 152 level for the first time since July 31, as the latest opinion polls indicate that the ruling Liberal Democratic Party could lose its majority to its coalition partner, Komeito, in the upcoming weekend election.

The risk of a minority coalition government has raised concerns about political instability, which could complicate the Bank of Japan’s efforts to reduce reliance on monetary stimulus.

The BOJ meets next week, though it is unlikely to raise rates. Before that, Tokyo consumer inflation data will be released on Friday.

Canadian Dollar and Chinese Yuan News

USD/CNY was up 0.1% to 7.1265, with attention focused on the upcoming meeting of China’s National People’s Congress, where more signals regarding fiscal spending are expected.

USD/CAD was up 0.1% to 1.3824 ahead of the Bank of Canada’s latest meeting.

“Markets are anticipating a 45 basis point easing by the Bank of Canada today. The reasoning is that inflation has slowed below target and weak growth justifies a faster, 50 basis point move to neutral rates,” ING analysts mentioned. “It’s a very tight decision, but we think 25 basis points is still slightly more likely.”

112

U.S. Stock Markets Lower on Rising Yields, Election Fears, Corporate Data

U.S. stocks and indexes declined on Wednesday as investors analyzed corporate earnings amid rising Treasury yields and political uncertainty with less than two weeks to go before the presidential election.

Wall Street indexes are down from their all-time highs this week, pressured by rising Treasury yields. The 10-year rate rose on Tuesday to a nearly three-month high, while political uncertainty surrounding the presidential election and heightened geopolitical tensions in the Middle East added to investor concerns.

Tesla’s Q3 Results in the Spotlight

Quarterly earnings season has entered a frenetic pace, with about one-fifth of the S&P 500 reporting this week.

Tesla (TSLA), the world’s most valuable electric car maker, is set to reveal its third-quarter results later in the session and is the largest U.S. company to report this week.

Tesla’s earnings come after its third-quarter deliveries fell short of expectations, and the much-anticipated unveiling of its robotaxi largely disappointed investors.

In addition to Tesla, other major Wall Street companies, including AT&T (T), IBM (IBM), Coca-Cola (KO), and Bank of America (BAC), will also release their results on Wednesday.

On the other hand, McDonald’s (MCD) shares were down nearly 6% before the market opened after the Centers for Disease Control (CDC) issued an alert regarding an E. coli outbreak linked to the fast food chain’s hamburgers. The outbreak has hospitalized 10 people and caused one death in 10 states, the CDC reported. Chipmaker Texas Instruments (TXN) rose 4% after its third-quarter earnings met estimates, though its forecast for the current quarter proved disappointing.

Starbucks (SBUX) shares fell more than 5% after the coffeehouse chain suspended its estimates for the next fiscal year, highlighting that same-store sales, net income, and profit declined in the fourth quarter, which ended Sept. 29, due to weak demand for its most expensive items in the U.S.

Federal Reserve’s Bowman

Wednesday’s economic data calendar is relatively light, with September’s existing home sales being the most relevant release.

Federal Open Market Committee (FOMC) member Michelle Bowman is also scheduled to speak, offering her views on future monetary policy as expectations shift toward the Fed becoming less aggressive in its easing over the next few months.

Attention is turning to the U.S. presidential election, and investors are increasingly positioning themselves ahead of Election Day on November 5.

Markets appear more confident that GOP candidate Donald Trump will defeat fellow GOP candidate Kamala Harris, although a new joint Reuters/Ipsos poll shows Harris with a marginal 46% to 43% lead over Trump.

This indicates a tight race, and markets could become volatile leading up to Election Day.

Oil Prices Fall as Inventories Rise

Oil prices declined following the release of industry data showing an increase in U.S. crude inventories.

Data from the American Petroleum Institute, released Tuesday, indicated that U.S. oil inventories rose by 1.643 million barrels in the previous week, raising the possibility of cooling U.S. fuel demand.

Official oil inventory data from the U.S. Energy Information Administration will be released on Wednesday.

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Today’s stocks to watch: McDonald’s and Starbucks

Key points:

  • McDonald’s stocks fell 7% because of an E. coli outbreak
  • Starbucks reported substantial quarterly declines in key markets
  • Enphase Energy declined 12% due to decreased demand in Europe

McDonald’s (MCD) faces serious trouble from E. coli outbreak

McDonald’s stocks were down 7% in closing market trading due to a deadly E. coli outbreak associated with Quarter Pounder burgers. This event has raised concerns about food safety, which has impacted investor confidence in the company. At this time, McDonald’s has not released an official statement on the matter, but investors are hoping for a quick response to help reduce the impact.

Starbucks (SBUX) posts significant declines in key markets

Starbucks has suffered a 5% drop in its stocks during pre-market trading following the release of strong quarterly pullbacks in its most prominent markets, such as the U.S. and China. Starbucks’ new CEO has called for a substantial restructuring to address these challenges, seeking to improve global operations and focus on strategies to restore growth. Analysts are closely watching these changes, which could reshape the company’s course in the coming months.

Enphase Energy (ENPH) experiences a decline due to lower demand in Europe

Enphase Energy stocks fell more than 12% before the market opened. The solar energy and battery storage company announced a decline in revenue and earnings, and pointed to lower demand in Europe as one of the main factors impacting its results. The company is confident of a recovery as renewable energy projects in the region stabilize, although investors are concerned about volatility in the European market.

Spirit Airlines (SAVE) rises after possible merger with Frontier

Spirit Airlines stocks rose more than 15% before the market opened following The Wall Street Journal’s report that Frontier Airlines is exploring a new offer to merge with Spirit. Such a deal, which was unsuccessful in the past because of regulatory opposition, could result in a stronger, more competitive airline, which has drawn investor interest.

Qualcomm (QCOM) hit by Arm decision

Qualcomm stocks were down more than 4% before the market opened on a Bloomberg report that Arm (ARM) was canceling a license that authorizes Qualcomm to use its intellectual property to develop chips. The move could hurt Qualcomm’s ability to continue developing some key products in its semiconductor portfolio.

Boeing (BA) and Coca-Cola (KO) ready to report their results

Both Boeing and Coca-Cola release their results before the market opens. Investors are watching Boeing’s results, which could show the effect of recent production problems, while Coca-Cola could highlight its results in international markets. Both reports are expected to influence stock movements throughout the day.

114

Dollar slips ahead of elections; Fed and BOE also in focus

The U.S. dollar retreated on Monday amid political uncertainty ahead of Tuesday’s presidential election and also amid expectations that the Federal Reserve will cut interest rates this week.

The dollar index, which analyzes the greenback against a basket of six other [currencies], fell 0.5% to 103.695, after strong gains in October.

Dollar slips ahead of U.S. elections

At the beginning of this week, attention is focused on the U.S. presidential election scheduled for Tuesday, in which the race between the Republican Party candidate and former president, Donald Trump, and his Democratic rival, Vice President Kamala Harris, is very tight.

However, Harris received a noticeable boost when a respected poll in the generally conservative-leaning state of Iowa found her leading Trump by three percentage points, thanks in large part to support among women.

“Markets are apparently scaling back some Trump trading,” mentioned analysts at ING, in a note, ”and we suspect the next two days may see some abnormal swings in USD crosses due to tighter volatility conditions ahead of a hotly contested and highly binary U.S. election.”

Analysts think Trump’s policies on immigration, tax cuts and tariffs would move inflation, the dollar and bond yields higher.

In addition, markets were also positioning themselves positively for a 25 basis point cut by the Fed at the end of its latest two-day policy meeting next week, following the Fed’s decision to roll out a 50 basis point reduction in September.

Friday’s nonfarm payrolls report revealed a dramatic slowdown in job creation during October, although the release was affected by labor disputes and hurricanes.

“Had it not been for the proximity of the vote, we would have argued that a Fed cut would have been net negative for the dollar, but the FX implications of this Fed decision will only be assessed once election volatility has subsided,” ING added.

Euro rallies on improved eurozone data

In Europe, EUR/USD rose 0.5% to 1.0892, benefiting from a weaker dollar and recent data with a positive tone.

The latest Eurozone manufacturing PMI release saw an increase to 46.0 in October, up from 45.0 last month, according to data released early Monday. Although this data reveals that the sector remains in contractionary territory, it appears that some light may be on the horizon.

“Markets have reduced some pessimistic ECB bets following the latest eurozone growth and inflation figures, but are probably still open to reassessing the possibility of a 50 basis point cut in December if Trump wins this week,” ING added. “The reasoning there is that the ECB will be more inclined to frontload easing given the risk of protectionism under Trump.”

GBP/USD was up 0.3% at 1.2963, bouncing back from the previous week’s losses in the wake of the New Labour government’s budget.

The Bank of England has its meeting scheduled for Thursday and is expected to cut 25 basis points, although this decision has been complicated by a massive sell-off in gilts following the previous week’s budget.

“Markets are likely to be more interested in hearing what the MPC has to say about last week’s budget,” ING mentioned, given that the ”Office for Budget Responsibility views the announced fiscal measures as both pro-growth and inflationary.”

The yen rebounds from three-month lows

USD/JPY was down 0.6% at 152.11 retreating from recent three-month highs on the back of dollar weakness. The yen also benefited from a somewhat hawkish message from the Bank of Japan the previous week.

USD/CNY is down 0.3% to 71.009 and attention is focused on the NFP Standing Committee meeting that starts on Monday.

The NPC is expected to mark plans for more fiscal spending, with recent reports indicating that the body could greenlight $1.4 trillion in additional debt over the next few years.

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Presidential election and Federal Reserve meeting send U.S. stock market in turmoil

U.S. stock index futures rose Monday in cautious trading at the start of a week that brings a tight presidential election and a Federal Reserve meeting.

At the start of trading Monday, [Dow Jones] futures were up nearly 60 points, or about 0.1%, [S&P 500] futures were up 12 points, or about 0.2%, and [Nasdaq 100] futures were also up 12 points, or 0.2%.

Wall Street [indexes] booked losses of about 1% to #% the previous week, following a series of mixed results from large technology stocks.

Although September quarter earnings mostly beat estimates, the bleak outlook for several major stocks such as Microsoft (MSFT) and Apple (AAPL), in addition to estimates of higher capital spending, weighed on the major tech stocks.

Trump and Harris line up for a tight presidential race

Investors were on edge ahead of Tuesday’s scheduled presidential election as recent polls indicated a tight race between candidates Donald Trump and Kamala Harris.

Recent rises in the dollar and Treasury yields revealed that some investors were positioning positively for a Trump victory, which is believed to give room for more inflationary policies.

Analysts point out that the outcome could have a significant impact on market performance, especially in the high-tech sector.

Specifically, according to Wedbush analysts, a likely Trump victory would be generating concern among tech investors globally in the wake of a likely escalation of the U.S.-China tech conflict along with rising tariffs.

“A major shift in tariffs and a tougher stance toward China we believe would significantly impact supply chain, Nvidia (NASDAQ:NVDA) (NASDAQ:NVDA), Beijing’s retaliatory impacts on Apple/Tesla likely, and slow the pace of the AI revolution,” analysts led by Dan Ives state in a note.

Earnings season continues this week, with prints from Palantir Technologies (PLTR), Vertex Pharmaceuticals (VRTX) and Diamondback Energy (FANG) scheduled for Monday.

About one-fifth of the companies in the benchmark S&P 500 index will report their latest quarterly results this week.

Fed poised to cut interest rates

This week, attention will also be focused on the Federal Reserve’s meeting, at which the central bank is expected to cut interest rates by 25 basis points, following the 50 basis point cut in September.

Markets will be awaiting any comments from the Fed on its plans for future rate cuts, especially in light of recent data revealing the resilience of the U.S. economy and the tightness of inflation, which reduces estimates for rate cuts.

Although it is unlikely that Fed Chairman Jerome Powell will commit to any fixed pace of monetary easing, as the Fed has so far maintained a data-driven policy approach.

Still, the meeting comes after Friday’s nonfarm payroll data revealed that job growth slowed sharply in October, with a downward revision to the reading for the past two months, seemingly a sign that the labor market was cooling.

Oil prices soar after OPEC decision

Oil prices rose sharply on Monday after OPEC+, a group of producing countries, delayed by about a month an estimated production increase for December in the wake of recent pressure on prices from weak demand.

The Organization of the Petroleum Exporting Countries along with its allies, known as OPEC+, made the announcement on Sunday that they will again delay by at least a month an estimated production increase of 180,000 barrels per day.

It is the second time a cut of 2.2 million barrels a day has been extended and may suggest producer countries are concerned about demand around the world.

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Today’s stocks to watch: Trump Media, Nvidia and Apple

Key points:

  • Trump Media shares were down more than 20% in the previous week
  • Nvidia will replace Intel in the Dow Jones this week
  • Viking Therapeutics rose more than 20% after encouraging results

Trump Media & Technology (DJT) shows volatility with a 20% drop

Trump Media & Technology: The parent company of Donald Trump’s social media platform has behaved with greatvolatility in recent weeks, trading as a proxy for election expectations. Stocks were down in pre-market trading Monday, having lost more than 20% of their valuation in the past week.

Nvidia (NVDA) replaces Intel (INTC) on the Dow Jones

Nvidia: The chipmaker will join the Dow Jones Industrial Average this week, replacing Intel. Paint maker Sherwin-Williams will take the place of Dow Inc. The new changes will take place before the market opens Friday. Stocks of Nvidia and Sherwin-Williams rallied in premarket trading, while Intel and Dow stocks fell.

Viking Therapeutics (VKTX) rises after promising results

Viking Therapeutics: Stocks rose more than 20% after the biotech company reported promising results from a trial of its experimental anti-obesity pill. If it proves a success, the pill could rival drugs from Novo Nordisk and Eli Lilly, which must be injected. Novo stocks were down in Denmark, while Eli Lilly stocks were down in U.S. premarket trading.

Berkshire Hathaway cuts its stake in Apple (AAPL) and reduces its stake in Bank of America (BAC)

Apple: Warren Buffett-owned Berkshire Hathaway cut its stake in Apple by about 25% last quarter, the conglomerate’s report revealed. However, Berkshire remained the iPhone maker’s largest shareholder, Berkshire also reduced its position in Bank of America the previous quarter and continued to sell it in October. It now owns less than 10%.

Boeing (BA) faces crucial union vote

Boeing: The aircraft builder’s machinists’ union will vote Monday on a labor agreement that, if accepted, would end a debilitating multi-week strike.

Li Auto (LI) and XPeng (XPEV) rise after solid sales

Li Auto and XPeng: The Chinese electric vehicle makers posted solid sales in October, sending their Hong Kong-listed stocks higher.

The New York Times (NYT) prepares for a possible technical strike

The New York Times: The newspaper’s dispute with its technology staff is reaching a critical point, with a likely strike threatening to disrupt election coverage. Quarterly results will be released early Monday.

B. Riley Financial (RILY) falls after bankruptcy of Franchise Group

B. Riley Financial: The investment firm is a major stockholder in Franchise Group, which was filing for bankruptcy on Sunday amid a federal investigation. B. Riley shares were down nearly 18% in premarket trading.

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Market Highlights for the Week: Elections, Fed, and Earnings

This week is set to keep investors on edge, with a closely contested U.S. presidential election and a Federal Reserve meeting that could bring another rate cut. Here’s what to watch for in the markets in the coming days.

U.S. Elections

Tuesday is Election Day, with early voting already underway in a very tight race between Republican Donald Trump and Democrat Kamala Harris. Recent increases in Treasury yields and the dollar reflect anticipation of a Trump victory in some market sectors. However, polls show a very close race, and a possible Harris win could trigger swift market moves.

Some traders are hoping for a clear outcome, fearing that a contested election and prolonged uncertainty could impact the markets. Only seven states are considered truly competitive, and a poll released Saturday showed Harris with a surprising lead in Iowa, a state Trump had won decisively in the last two elections.

Fed Meeting

The Fed is expected to cut rates by 25 basis points at its policy meeting this Thursday, with another reduction anticipated in December, following September’s 50-point cut. Friday’s nonfarm payrolls report, which showed a slowdown in job growth in October due to strikes and weather disruptions, supported expectations for a smaller rate cut.

Investors are looking to the Fed statement and Chairman Jerome Powell’s comments at the subsequent press conference for insight into whether officials believe economic resilience will continue and how that may influence the pace of future rate cuts. However, analysts at Morgan Stanley (MS) note that Powell may avoid detailing the size or frequency of future cuts, as the Fed remains data-dependent.

Earnings Season

The third-quarter earnings season continues this week, although investors may focus more on the election and the Fed meeting.

Palantir (PLTR) and Constellation Energy (CEG) will release their results on Monday, followed by Builders FirstSource Inc. (BLDR), Ferrari (RACE), and Super Micro Computer (SMCI) on Tuesday. SMCI shares were down nearly 45% last week after Ernst & Young resigned as the company’s accountant.

Reports from Qualcomm (QCOM), CVS (CVS), and Arm Holdings (ARM) are expected Wednesday, with investors watching for updates from Arm on its lawsuit against Qualcomm.

On Thursday, Pinterest (PINS), DraftKings (DKNG), Cloudflare (NET), and Affirm (AFRM) will release their results.

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Dollar Remains Strong Ahead of CPI and Fed; Euro Bearish

The U.S. dollar strengthened on Monday, maintaining the momentum generated by Donald Trump’s return to the presidency. Investors are eyeing key inflation data due for release this week, alongside remarks from several Federal Reserve officials. The dollar index, which measures the greenback’s performance against a basket of six other currencies, rose by approximately 0.3% in early trade, building on a 0.6% gain recorded the previous week.

Dollar Continues to Strengthen

The dollar’s rally last week reached a four-month high as Trump’s economic policies, including proposed tariffs and stricter immigration controls, were interpreted as inflationary. This has prompted speculation that the Federal Reserve may cut interest rates more cautiously, both in scope and timing. While the Fed’s recent 25 basis-point rate cut temporarily slowed the dollar’s ascent, it retained much of its previous gains.

Analysts at ING commented, “The thesis for dollar bearishness now is based on the belief that tariffs will take time to implement and that the Fed’s gradual shift to less restrictive monetary policy, combined with seasonal dollar patterns later in the year, could lead to a softer dollar. However, we believe this clear election outcome could bolster U.S. consumer and business confidence while denting sentiment in other parts of the world.”

With U.S. bond markets closed for a holiday, trading volumes were expected to remain light on Monday. Attention now shifts to Wednesday’s release of October’s Consumer Price Index (CPI) report, which could influence market expectations about the Fed’s future rate trajectory.

This week, Federal Reserve officials will also provide insights following last week’s rate cut, which brought the federal funds rate to a range of 4.50%-4.75%. Their comments will be closely watched for indications of whether the Fed anticipates further easing or intends to pause rate adjustments.

Euro Struggles Amid Dollar Strength and Political Turmoil

The EUR/USD pair dropped by nearly 0.3% to 1.0688 as Trump’s proposed tariffs and political instability in Germany weighed on the euro. German Chancellor Olaf Scholz dismissed his finance minister last week, setting the stage for early elections after ongoing disputes within his three-party coalition. Reports suggest that a no-confidence motion could occur in December, with elections potentially as early as February. This uncertainty has added to the euro’s struggles.

Additionally, ING analysts noted that the eurozone economy remains vulnerable to the ripple effects of Trump’s policies. They anticipate that the European Central Bank (ECB) will cut rates by 50 basis points in December to support the region’s growth.

Pound Declines After BoE Rate Cut

The GBP/USD pair fell by 0.2% to 1.2900 following the Bank of England’s decision to reduce interest rates by 25 basis points, bringing the benchmark rate to 4.75%. This marked the BoE’s second rate cut since 2020. Traders are looking ahead to a speech by Governor Andrew Bailey on Thursday for clarity on monetary policy, particularly in light of the expansionary fiscal measures introduced in the recent Labour budget. ING analysts suggested that Bailey might downplay the possibility of accelerated rate cuts given the robust performance of the U.K. economy and the potential inflationary impact of Trump’s policies.

Yuan Weakens Amid Disappointment Over Debt Package

The USD/CNY pair rose by 0.2% to 7.1934, nearing three-month highs after China’s National People’s Congress approved a $1.4 trillion debt package to ease local government borrowing. However, the lack of specific fiscal measures left investors disappointed, contributing to yuan weakness.

The USD/JPY pair climbed by 0.8% to 153.83 as uncertainty over Japan’s political landscape and monetary policy weighed on the yen. The Bank of Japan’s October meeting revealed divisions among policymakers regarding future interest rate hikes, casting doubt on the timeline for additional tightening. Political instability following the ruling Liberal Democratic Party’s loss of its parliamentary majority has further pressured the yen.

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U.S. Stocks Rise; Inflation and Fed in the Spotlight

U.S. stock markets and index futures rose on Monday, extending their recent rally, as investors focused on upcoming inflation data and insights from Federal Reserve officials set to speak this week.

In early trading, Dow Jones futures were up about 175 points, up 0.4%,futures were up about 21 points, up something close to 0.4%, while [Nasdaq 100]) futures were up 55 points, up 0.3%.

Wall Street’s major indexes surged during the second half of the previous week following former President Donald Trump’s declared victory in the 2024 presidential election. With the Republican Party poised to control both houses of Congress, markets anticipate a smoother path for significant policy changes.

The Dow Jones Industrial Average and the S&P 500 each gained nearly 4% last week, marking their best performance since November 2023, while the Nasdaq Composite surged over 5%. All three benchmarks closed Friday’s session at record highs. Trading volumes on Monday are expected to be light due to the Veterans Day holiday.

CPI Data and Fed Speakers

Investor attention this week is on the October consumer price index (CPI) data, seeking further confirmation of inflationary trends. This release follows the Federal Reserve’s recent 25 basis point rate cut and its data-driven approach to future monetary policy decisions. CPI results are expected to influence rate expectations, with markets currently pricing a 65.9% chance of another 25 basis point cut in December.

Despite some easing earlier this year, inflation has shown resilience in recent months due to sustained economic and labor market strength. In addition to the CPI, speeches by multiple Federal Reserve officials this week will shed light on the central bank’s approach to future rate adjustments.

“Animal Spirits” and Market Optimism

Monday lacks significant economic data releases, but the quarterly earnings season continues with results from companies like Live Nation Entertainment (LYV) and Aramark (ARMK). Analysts at Evercore ISI predict continued market growth, projecting the S&P 500 to reach 6,600 by mid-2025, driven by “animal spirits” ignited by Trump’s election victory. This optimism reflects a longer-term trend rather than a mere post-election bounce.

Trump’s victory provided the stock market with its most robust post-election day rally in over a century, signaling potential for broader market momentum in the months ahead.

Oil Prices Retreat on Chinese Disappointment

Oil prices declined as traders weighed China’s newly approved 10 trillion yuan ($1.4 trillion) fiscal stimulus package and the reduced supply concerns following Hurricane Rafael’s downgrade. Despite China’s measures to address public debt levels, the absence of targeted private consumption initiatives left investors underwhelmed. Weekend data highlighting ongoing deflation in China further dampened sentiment.

In the U.S., fears of significant production disruptions eased as Hurricane Rafael weakened to a tropical storm upon reaching Cuba.

This combination of global economic data, evolving fiscal policies, and corporate earnings results will continue to shape market dynamics throughout the week.

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Today’s Stocks to Watch: Tesla, Coinbase, and Trump Media

Key Points To Watch Out For:

  • Coinbase, Tesla and other crypto-linked stocks show big rally after Trump victory
  • Trump Media and its affiliates push the so-called “Trump trade”
  • Ernst & Young’s exit has a negative impact on Super Micro Computer

Coinbase (COIN), MicroStrategy (MSTR) and Robinhood (HOOD) Lead Gains Amid Bitcoin Surge

Stocks linked to cryptocurrencies rallied in pre-market trading, driven by Bitcoin’s surge past $80,000. The cryptocurrency market has entered a frenzied state following Donald Trump’s election victory, with investors speculating on a more favorable regulatory environment for digital assets under the new administration. Coinbase rose sharply, along with MicroStrategy, known for its significant Bitcoin holdings, and Robinhood, which benefits from retail cryptocurrency trading.

Trump Media Surges Following Election Victory

The parent company of the president-elect’s social network surged in pre-market trading, continuing the trend known as the “Trump trade.” This phenomenon sees specific sectors and companies aligned with Donald Trump’s political and economic agendas experiencing growth during his periods of political prominence. Investors anticipate that Trump’s policies will provide advantages to businesses tied to his administration’s interests. Analysts suggest that this bullish momentum for Trump Media could persist, particularly if the incoming administration announces new economic policies favorable to the tech and media industries.

Tesla Rises on Speculation of Pro-Business Policies

Tesla saw a pre-market rise of approximately 6%, driven by expectations of supportive policies under the new administration. Elon Musk, an outspoken ally of Trump, is anticipated to leverage this political landscape to further expand Tesla’s presence in tech and energy sectors. Analysts predict that potential tax incentives or infrastructure investments could significantly benefit Tesla’s operations in renewable energy and electric vehicles.

Super Micro Computer Faces Decline Amid Auditor Concerns

In contrast, Super Micro Computer faced a drop in after-hours trading. The decline followed Ernst & Young’s resignation as the company’s auditor last month, raising concerns about market confidence. Super Micro Computer, a key player in artificial intelligence server manufacturing, is now under scrutiny. Analysts caution that without the swift appointment of a new auditor, investor sentiment may continue to deteriorate, exacerbating the stock’s downward trend.

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Bitcoin Overtakes Silver to Become the World’s Eighth Largest Asset by Market Capitalization

Bitcoin has achieved another remarkable milestone, surpassing silver in market capitalization to rank as the eighth largest asset globally, with a valuation of $1.736 trillion, as reported by the Companies Market Cap website. This accomplishment came after Bitcoin’s price surged past $88,000, gaining 10% in a single day. Conversely, silver’s market value declined by 2%, allowing Bitcoin to overtake its position in the global ranking.

Following this surge, Bitcoin now trails only gold, Nvidia, Apple, Microsoft, Google, Amazon, and Saudi Aramco among the largest global assets. This solidifies Bitcoin’s position as a major player in the asset landscape, blending traditional and digital financial markets.

Analysts Highlight Bitcoin’s Potential

The Kobessi Letter, known for its detailed financial market analysis, emphasized Bitcoin’s remarkable achievement, stating, “The fact that gold is still 10 times bigger than Bitcoin is astounding. This not only demonstrates the size of gold but also the growth potential of Bitcoin.” While Bitcoin has seen an over 100% increase year-to-date, it would need a tenfold increase from its current value to match gold’s market capitalization, underscoring its potential for further growth.

Institutional Interest and Bitcoin ETFs Drive Momentum

Bitcoin’s recent rally has been significantly fueled by increased institutional demand and the popularity of Bitcoin ETFs. Eric Balchunas, a senior ETF analyst at Bloomberg, pointed out that BlackRock’s iShares Bitcoin Trust (IBIT) recorded a trading volume of $4.5 billion in a single day. Additionally, the broader “Bitcoin industrial complex,” encompassing MicroStrategy and Coinbase Bitcoin ETFs, achieved an all-time high trading volume of $38 billion, showcasing rising interest in digital asset investments.

Trump’s Pro-Crypto Stance Bolsters Market Optimism

Bitcoin’s surge followed Donald Trump’s election victory, which has reinvigorated optimism about potential regulatory support for cryptocurrencies. Trump’s pro-cryptocurrency stance has raised expectations for a favorable regulatory environment, fueling speculation that Bitcoin could reach the $100,000 milestone by the end of 2024. With Bitcoin already at its recent high of $88,000, the cryptocurrency is just 14% away from hitting six figures, reflecting its robust momentum in the market.

This series of events demonstrates Bitcoin’s rapid growth and its increasing acceptance as a mainstream asset. Analysts suggest that continued institutional adoption and regulatory clarity could further solidify Bitcoin’s position among the world’s top financial assets.