US stocks are down for the first time since the US election. But Bitcoin knocks on US$90,000 and Nvidia pushes up to record highs ahead of earnings
From YouTube
Trump traders take profits off the table US stocks fell for the first time since the election, with investors naturally taking some profits off the table ahead of US inflation data, in case it rises more than expected and spooks the market.
The S&P 500 $S&P 500 Index (.SPX.US)$ lost 0.2%, with Trump-trade stocks among the most notable losers. Tesla shares fell 6% on Tuesday, though they’ve risen 31% since the election, gaining $198 billion in value. Trump Media shares also fell, dropping 9% on Tuesday. Meanwhile, Nvidia $NVIDIA (NVDA.US)$ rose back to record levels as traders are positioning for a potential rally next week, anticipating that Nvidia may report far better than expected quarterly profits.
Sophisticated traders are increasing their holdings of the US dollar with many expecting that Trump’s policies will drive up inflation, potentially leading to prolonged higher interest rates in the US. This sentiment was echoed by Fed speaker Neel Kashkari overnight, who indicated it could take a year or two to bring US inflation back toward the 2% target. The takeaway here is that we might see the US dollar and bond yields continue to rise, with the USD already reaching highs not seen since April. This also suggests that selling pressure on gold could increase. Gold today is down 0.5% and has lost 6% over the last 13 days.
Keep an eye on Bitcoin.
There’s speculation it could push through US$100,000, with Trump expected to make BTC a US government strategic reserve asset, similar to gold. We could witness history today if Bitcoin rises above US$90,000.
Locally listed Block $Block (SQ.US)$ $Block Inc (SQ2.AU)$ is also worth watching, as its US counterpart rose 4.5% overnight. Block is a top company on the ASX.
Broadly, the Aussie share market is under pressure with the higher US dollar pressuring commodity prices and stocks. Today all eyes are on CBA...
which is due to release a quarterly update. Commonwealth Bank $CommBank (CBA.AU)$ this week became the first company in Australia to reach a record $250 billion valuation. While its results will likely reflect tough conditions for Aussies, with overall lending in decline, CBA shares could still climb. We must remember that there’s $4 trillion in superannuation assets in Australia, and there are only so many companies superannuation funds can invest in.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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