According to the US inflation report: Wall Street is weakening – Bitcoin is extremely strong

According to US inflation report
Wall Street is weakening – Bitcoin is extremely strong

Listen to article

This audio version was artificially generated. More info | Send feedback

The unexpected increase in inflation in the USA is having an impact on Wall Street, with the most important indices stalling or weakening. Things look much better with Bitcoin. Its soaring seems to have no end – crypto stocks are profiting.

Expecting further stimulus after Tuesday’s disappointing US inflation report, US stock markets are unable to find common direction. The Dow JonesIndex of standard values ​​was 0.3 percent higher at 39,116 points. The broader one S&P 500Index more or less stood still at 5175 points. The technology stock market index Nasdaq fell 0.3 percent to 16,219 jobs.

“After yesterday’s US inflation data, investors are neither excited nor desperate,” said Thierry Wizman, strategist at investment bank Macquarie. Investors hit the brakes ahead of producer prices expected on Thursday, which are expected to provide more insight into U.S. inflation.

S&P 500 Index, India
S&P 500 Index, India 5,170.23

Surprisingly higher consumer prices did not upset the stock markets the day before, but they somewhat dampened expectations of the US Federal Reserve’s first interest rate cut in the middle of the year. On the futures markets, the probability of monetary policy easing at the Fed meetings in June and July is currently estimated at 65 and a good 80 percent. Falling interest rates in the event of further interest rate decisions are considered more or less a foregone conclusion.

Meanwhile, Ukrainian attacks on refineries in Russia drove up oil prices. The North Sea variety Brent and the light US variety WTI rose in price by almost 2.5 percent each to 83.82 and 79.44 dollars per barrel (159 liters). According to an insider, the Ukrainian domestic secret service SBU attacked three Russian oil refineries in Ryazan, Kstovo and Kirishi during the night. This is part of the strategy to reduce Russia’s economic potential. “This sudden but understandable increase in oil prices was clearly triggered by the attacks,” commented analyst Tamas Varga from oil broker PVM.

Bitcoin keeps climbing

That was also in demand Bitcoin. The cryptocurrency with the highest turnover climbed by up to 3.7 percent to $73,678, making it more expensive than ever. The background is the ongoing hope that interest rates will fall in the long term, said Timo Emden from the analysis house Emden Research: “Interest-free values ​​such as Bitcoin can become more attractive again in a potential low interest rate environment.” Stocks from the crypto sector such as MicroStrategy, Bit Digital, Riot Platforms and Marathon Digital rose by up to a good ten percent.

Bitcoin Bitcoin
Bitcoin 73,164.42

At other companies it worked for Dollar Tree steeply downhill. Shares fell almost 14 percent. The discounter posted a net loss in the last quarter and plans to close almost 1,000 branches. Dollar Tree stores are struggling with declining consumer spending and face tough competition from rivals like Walmart and Chinese e-commerce platform Temu.

They also flew out of the depots MC Donalds. According to a pessimistic forecast, the shares of the fast-food chain fell by around 3.5 percent. The group’s sales are likely to decline slightly in the current quarter due to the conflict in the Middle East and weak demand in China, said CFO Ian Borden. The chip manufacturer’s papers lost just as much Intel. According to a media report, the US Department of Defense has canceled a plan to spend up to $2.5 billion in subsidies for the company.

source site-32