US Stocks Rise to New Closing High, Ethereum Jumps to Fresh Record

04 Nov 2021 · 3rd Party Analysis

US Stocks Rise to New Closing High, Ethereum Jumps to Fresh Record


In Summary:

  • US stocks rise to a new high after the Fed says it would start dialing down monetary stimulus
  • Ethereum’s native coin, Ether, jumps nearly 5% to log a fresh record of $4,665

What’s Trading in the Markets?

Wall Street stocks and cryptocurrency markets are pushing to new all-time highs. Recently, both asset classes have been boosted to record valuations amid increasing hopes for a brighter future. That said, a new all-time high arrived for all three major stock averages in the US on Wednesday.

In more detail, after a statement from the US Federal Reserve, stocks erased intraday losses and logged new records. With this in mind, Federal Reserve Chairman Jerome Powell assuaged investor fears by saying the US economy has progressed substantially.

Against this backdrop, Mr. Powell announced Fed officials are reversing the stimulus of $120bn a month in bond buying. Starting this month, the asset purchases will be reduced by $15bn a month. With that pace, the Fed expects to have completed the tapering process by June 2022.

As a result, traders and investors celebrated the positive comments and upbeat outlook provided by Chairman Powell.

What’s the Latest on Cryptocurrency?

Meanwhile, the cryptocurrency market surpassed a record-high valuation of $2.9tn. In particular, the Ethereum token jumped to a fresh high of $4,665 apiece. On this note, Ether has been outperforming bitcoin this year by a wide margin. More precisely, the annual gain of Ether stands at over 500%. Bitcoin, on the other hand, boasts a return of about $115% since January.

Still, crypto market enthusiasts have their hopes high that the broader move to the upside will continue. First, bitcoin, as the original cryptocurrency, is expected to reach new highs in the remaining two months of 2021.

This is also supported by November’s edition of Bloomberg’s Crypto Outlook. In the report, Bloomberg strategist Mike McGlone says the orange coin could reach $100,000 by December 31.

Ether, on the other hand, is projected to hit $5,000 by year-end.

What to Expect in the Markets?

On Friday, traders and investors in stocks and currency pairs will be looking for the crucial monthly jobs data. In more detail, the nonfarm payrolls report for October will be published by the US Labor Department. Along with the jobs number, the unemployment rate will also be delivered. Both reports will highlight the speed of the economic recovery in the US.

Furthermore, they will present increased opportunities for forex traders to take advantage of the elevated volatility. Currency pairs such as the EUR/USD are generally highly volatile during such news releases.

Economic News Today (EST time)

On Thursday, the markets will watch for the interest rate decision from the UK’s central bank. The announcement is slated for 08:00 am. Additionally, the initial jobless claims in the US arrive at 08:30 am. Later, at 09:00 am, ECB President Christine Lagarde speaks on the European economy.

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