It’s been a challenging year for the markets, but the policies adopted so far allowed them to reach new highs
US Indices and the US 10-year Bond
Markets started to recover from the pandemic-era lows. As the COVID-19-related restrictions began to relax, the economy started to reopen, with prices jumping as demand recovers. Also, more than half of the States adult population has been vaccinated, allowing a broader economic re-engagement. The weekly jobless report from the Department of Labor showed that the number of people who filed for unemployment continued to drop in the past six weeks, reaching 376,000.
The markets didn’t fail to show the progress made. Since the beginning of the year, Nasdaq gained 9.16%, while USA30 added 12.65%. USA500 gained the most – 13.08%. Moreover, the TNote10 reached 1.453%, marking a 53.4 bps (basis points) as investors seem to be relaxed about inflation concerns, which spooked rates in late March.
However, the US stocks are hovering near record levels, boosted by a mix of rebounding economic activity and corporate profits, as well as the ongoing monetary policy. The duration of this policy will come into focus this week, with the Federal Reserve’s decision and press conference on Wednesday. Market participants will monitor whether and when the central bank might start rolling back its crisis-era policies.
Bitcoin and Ethereum
So far, this year has been a rollercoaster for Bitcoin, and by extension, for the other cryptos. After being accepted and later refused as a payment method by Tesla, the coin took another hit. China and the US asked for tighter regulation and tax compliance to protect the financial system.
Now, things seem to have taken another turn for cryptocurrencies. Elon Musk announced that his company would accept Bitcoin again if crypto miners use more clean energy to tackle climate change. Since the beginning of the year, the world’s most famous cryptocurrency gained 34.15%, currently trading at more than $39,320. At the same time, Ethereum, the second-largest cryptocurrency globally, gained 241.49%, trading $2,487 at the moment of writing.
Sources: morningbrew.com, coindesk.com, finance.yahoo.com