Market wraps higher as traders get over the initial shock from Fed's statement
Market session on Tuesday ended with all benchmark equities ending higher, due to the fact that initial concerns and shock from the Fed's new outlook for the monetary policy being shaken off.
Investors showed a renewed interest in tech stocks after the Fed's statement, while stocks that were "reopened", such as cruise lines and airlines in the travel industry, ended slumping because of the concerns over higher price giving a negative impact on economic recovery. And due to the fact that the new outlook of the Feds on inflation reflects a faster pace, the traders who were originally interested in cyclical trade's long term benefits are having second thoughts, while others immediately shied away.
On the other hand, the cryptocurrency market deflated with China's improvement and tightening of regulatory actions raising concerns for traders. Bitcoin (BTC) erased any year-to-date gains as prices fell below the $30,000 mark at their intraday session. Same goes for majority of the cryptocurrencies in the market.
There's also the fact that the Q2 earnings season is coming up in a few weeks from now, traders are anticipating another great performance, or a repeat of what happened in Q1. This is due to the fact that the consumers now have less restrictions because of the vaccines and that they have their savings to back them up.
A quick summary to the market session's movements:
NASDAQ and S&P are also on a 2-day winning streak with S&P inching closer to record levels while NASDAQ got a new intraday and ending record high.
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