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U.S. Markets Hold Steady as Bitcoin Surges
NEW YORK — U.S. stocks are maintaining their positions near record levels as the market anticipates a significant jobs report set to be released on Friday. The cryptocurrency sector, however, is experiencing heightened volatility, with Bitcoin achieving a remarkable milestone, surpassing $103,000. The S&P 500 index showed little movement early Thursday after reaching an all-time high for the 56th time this year on the previous day. The Dow Jones Industrial Average decreased by 34 points, while the Nasdaq composite edged up by 0.1%. This surge in Bitcoin prices followed President-elect Donald Trump’s decision to nominate Paul Atkins, a staunch advocate for cryptocurrencies, as head of the Securities and Exchange Commission. Since Election Day, the value of Bitcoin has soared significantly.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
U.S. markets were relatively quiet early Thursday after another significant rally on Wall Street. Notably, Bitcoin climbed above $100,000 for the very first time.
Before the market opened, futures for both the S&P 500 and the Dow Jones Industrial Average were down by less than 0.1%.
Bitcoin surged past $100,000 late Wednesday night, following the announcement of Trump’s SEC nominee. The cryptocurrency’s price has seen a substantial increase from $69,374 as of November 5, which coincided with Election Day.
By early Thursday, Bitcoin was trading at $102,826, as reported by CoinDesk.
In stock trading, discount retailer Five Below witnessed a significant rise, increasing by more than 14% after the Philadelphia-based company exceeded Wall Street’s expectations for its third-quarter sales and profits. This strong performance marks a considerable recovery from July, when Five Below lowered its forecasts and announced the departure of its CEO, Joel Anderson, due to declining sales.
Dollar General also benefited from favorable market conditions, gaining nearly 2% in premarket trading after exceeding sales estimates, although it fell short of Wall Street’s earnings per share targets.
Conversely, American Eagle, a fashion retailer, experienced a decline of 13.7% despite beating profit expectations. The company issued a lackluster guidance report, raising concerns about potential sluggish sales during off-peak periods without any major holidays.
Turning to Europe, France’s CAC 40 saw a marginal increase of 0.1% in early trading. This slight uptick came after a coalition of far-right and left-wing lawmakers successfully passed a no-confidence motion against Prime Minister Michel Barnier over ongoing budget disagreements, resulting in the resignation of him and his Cabinet.
The German DAX index rose by 0.3%, while Britain’s FTSE 100 index remained unchanged.
In Asia, South Korea’s Kospi decreased by 0.9% to 2,441.85, continuing a decline of 1.4% from the previous day. This downturn occurs amidst political turmoil, as President Yoon Suk Yeol faces possible impeachment following his controversial decision to declare martial law on Tuesday night, which he revoked merely six hours later.
On Thursday, President Yoon accepted the resignation of his defense minister as opposition parties initiated moves to impeach both leaders. The Democratic Party and other smaller opposition groups submitted a joint motion to impeach Yoon on Wednesday in response to the martial law declaration.
In other markets, Japan’s benchmark Nikkei 225 advanced by 0.3% to close at 39,395.60, while Australia’s S&P/ASX 200 saw a modest gain of 0.2%, ending at 8,474.90. Conversely, Hong Kong’s Hang Seng index fell by 0.9% to 19,560.44, and the Shanghai Composite increased slightly by 0.1%, finishing at 3,368.86.
Taiwan’s Taiex experienced a minor increase of nearly 0.1%, while India’s Sensex rose by 0.9%.
Looking ahead, Wall Street’s attention will be focused on the upcoming jobs report from the U.S. government, which is expected to provide insights into employment trends for the previous month.
Market participants are speculating that the Federal Reserve may opt to lower its primary interest rate further during its next meeting in two weeks. The Fed commenced rate cuts from a two-decade high in September, with the intentions of fostering job growth.
While the central bank appeared poised to continue reducing rates into the foreseeable future, Donald Trump’s election introduces uncertainties that have shifted market expectations. The president’s inclination toward increased tariffs and diverse policies may contribute to rising inflation rates, subsequently impacting the Fed’s strategy.
In energy markets, benchmark U.S. crude oil prices increased by 24 cents, reaching $68.78 per barrel, while Brent crude, the international benchmark, also rose by 24 cents to $72.55.
The OPEC+ alliance, comprising oil-exporting nations, is set to make decisions today regarding whether to alter production levels, as they face challenges from sluggish demand and competing output from non-member countries. Such factors are likely to keep oil prices relatively stable moving into 2024.
U.S. motorists may find relief from falling gasoline prices, which have dipped to their lowest levels in over two and a half years, approaching $3 per gallon.
In currency markets, the U.S. dollar slightly weakened against the Japanese yen, decreasing to 150.43 yen from 150.62. The euro appreciated marginally to $1.0534, compared to $1.0510 earlier.
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