BTC hovers around 88k, Treasury yields up
Market awaits U.S. tariffs. Dow up 0.33%, S&P 500 down 0.34%, Nasdaq down 1.5%. Tech stocks slide, oil rises 1.5%, Bitcoin falls 1.3%
U.S. Stock Market Performance
The U.S. stock market saw mixed results on Wednesday as investors reacted to economic uncertainty and upcoming tariff decisions. The Dow Jones Industrial Average rose 0.33% to 42,728.80, while the S&P 500 fell 0.34% to 5,757.73. The Nasdaq Composite experienced a sharper decline of 1.5% to 18,092.63, largely due to losses in technology stocks. Tesla fell 3.2%, Nvidia declined 3.5%, and Alphabet lost 1.5%. Barclays adjusted its 2025 target for the S&P 500 down to 5,900 from 6,600, citing trade concerns. Meanwhile, an equal-weight index of the S&P 500 edged up 0.3%, indicating that the broader market was more stable compared to the declines in major tech stocks.
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Corporate Developments and Sector Movements
Several corporate announcements influenced stock movements. Dollar Tree gained 3.8% following news that it is finalizing the sale of Family Dollar for approximately $1 billion. GameStop surged 9.8% after announcing plans to hold bitcoin as a treasury asset and reporting stronger-than-expected Q4 profits. In contrast, the “Magnificent Seven” tech stocks saw declines, contributing to market weakness. Despite this, seven out of eleven S&P 500 sectors posted gains, with energy leading the way, rising 1.3% as crude oil prices strengthened due to geopolitical concerns.
Economic Indicators and Treasury Yields
Key economic data added to market volatility. Orders for durable goods unexpectedly rose, defying forecasts of a contraction, but business investment metrics showed signs of slowing. The Federal Reserve’s preferred inflation measure, the Personal Consumption Expenditures (PCE) price index, is expected on Friday, with investors closely watching for signals on future interest rate policy. The yield on the 10-year Treasury note climbed to 4.35% from 4.31%, reflecting concerns about inflation and potential Federal Reserve actions. The Chicago Fed President Austan Goolsbee hinted that rate cuts could be delayed due to economic uncertainty.
Global Market and Currency Trends
International markets were mixed. The FTSE 100 gained 0.3% after U.K. inflation data showed a slight improvement. The Stoxx Europe 600 fell 0.4%, weighed down by weakness in technology stocks. The MSCI World Index declined 0.3%. In currency markets, the U.S. dollar strengthened, with the Bloomberg Dollar Spot Index rising 0.1%. The British pound fell 0.4% to $1.2896, while the Japanese yen weakened 0.5% to 150.70 per dollar.
Cryptocurrency and Commodities Performance
Cryptocurrency prices saw declines, with bitcoin dropping 1.3% to $86,757.43 and ether losing 2.6% to $2,012.55. Meanwhile, commodities showed mixed results. West Texas Intermediate (WTI) crude oil rose 1.5% to $70.05 per barrel, driven by concerns over potential supply disruptions linked to U.S. tariffs on Venezuelan oil buyers. Gold remained steady, reflecting investor uncertainty and a preference for safe-haven assets amid geopolitical tensions and trade policy ambiguity.
Trade Policy Uncertainty and Market Liquidity
Market participants are closely monitoring the April 2 deadline for new U.S. tariffs, which could significantly impact global trade. The Congressional Budget Office warned that the U.S. Treasury might face a payment default as soon as August, adding to investor unease. Liquidity in S&P 500 futures is at a two-year low, according to Deutsche Bank data, exacerbating market volatility. Analysts suggest that tariff concerns and weakening business investment may continue to pressure U.S. equities throughout 2025.
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