Friends
Falling crypto currency prices seemed to spill over to the stock market today, sending the market averages lower from the open of trading. Bitcoin was down more than 6% overnight and as I have mentioned, I really don’t have any conviction on cryptocurrencies per se, but when they lose value, it certainly has an effect on how wealthy people who dabble in such things feel. A lessening wealth effect will likely affect spending and thus the economy, so yes, it matters when cryptocurrencies stumble.
As for today, by the close the Dow Jones Industrial Average was down 427 points to finish the day at 47,289. The S&P 500 was down 36 points to close at 6,812. The Nasdaq Composite Index was down 89 points to close at 23,275. Gold was up $19 to trade at $4,274 per ounce, while oil was up $1 to trade at $59.55 per barrel WTI.
It will be interesting to see if the bulls can hold things together if the AI trade has stalled for the moment. Last week we did see other sectors help lift the market averages, but I wonder how long that can last. We will see.
Have a nice evening everyone.
