Crypto Markets Surging on Back of Rising US Tech Stocks?
A recent rally of technology companies’ shares led to an overall increase in US stock prices, which are hitting new records. Could this bullish activity be the cause of today’s crypto recovery?
US and China willing to continue with the talks
The US/China trade war still rages on, but recent events have had some positive impacts on the prices of stocks around the world. The recent increase comes directly after China’s officials announced speeding up of penalties and punitive action for patent infringement and copyrights.
Meanwhile, the US declared that it is willing to continue negotiating, provided that China can assure the US that it will stay true to its commitments. Clearly, China’s response indicates that the country is willing to continue talks with the US, which is considered to be a good sign for assets such as stocks.
Stocks are known to be risky assets, and this was confirmed throughout the year, as the uncertainty regarding the two powers’ negotiations prolonged. Confirmation that the negotiations will continue in good faith has had a major impact on the shares of many companies, including the Dow Jones Industrial Average, which rose by 0.7% (190.85 points). Nasdaq Composite grew by 1.3% (112.60 points), while S&P 500 went up by 0.8% (23.35 points).
Moving forward, stock market participants do not expect any sudden moves, unless some unexpected news ends up having a major impact. Further, due to the holidays approaching, the bond and stock markets will be closed Thursday and shut early on Friday.
Stock and Crypto Markets Bounce
When it comes to the tech firms in the US, the country has had quite a few significant gainers, including Advanced Micro Devices, whose shares rose by 1.6%, as well as Nvidia, which saw a 4.9% surge.
While the US/China situation did have a significant impact on the stock prices, it is worth noting that the recent growth in deal-making also had a major influence on the positivity surrounding stock prices.
Probably the best-known example includes the LVMH Moët Hennessy Louis Vuitton’s purchase of Tiffany, whose shares surged by 6.2% following the announcement. Another example is the surge of Charles Schwab shares, which rose by 2.3% following the agreement to buy a rivaling firm, TD Ameritrade Holding. The rivaling company itself saw a share surge of 7.6%.
Other major gainers include eBay (2.1%), but also the GBP, which increased by 0.6% against USD, and the FTSE 100 index, which grew by 0.9%.
The improving stock market could be a contributing catalyst for the relief rally we’re witnessing take place across the crypto markets today. Right now, the leading cryptocurrency has recovered 5% of its losses from the week, and returned to the psychological support at $7,200. According to Coinmarketcap figures, the global market cap has added $16 Billion in the last 24 hours, arousing hope that the crypto market bottom is finally in.
What do you think about the new stock price rally? Do you expect that the share prices will continue growing throughout the holidays? Let us know in the comments below.
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