While global markets are intimidated by Covid and the Hawk Fed, stocks and crypto are recovering after Musk buys Twitter – Finance Bitcoin News

While global markets are intimidated by Covid and the Hawk Fed, stocks and crypto are recovering after Musk buys Twitter – Finance Bitcoin News

Wall Street suffered damage Monday morning as major U.S. stock indexes fell further, building on losses collected last week. Reports show that investors are worried about the upcoming increase in the Federal Reserve rate and the recent outbreak of the Covid-19 virus in China. As stocks fell on Monday, the crypto-economy fell below the $ 2 trillion mark, and gold prices fell 1.6% against the U.S. dollar in the last 24 hours. However, after Elon Musk revealed that he bought Twitter at 2:50 p.m. (ET), both the stock and crypto markets recovered significantly after the announcement.

Global markets are shaken by fears of Covid-19 supply chain problems and the possibility of aggressive rate increases

Four days ago, Jerome Powell, the current president of the U.S. Federal Reserve, explained at the International Monetary Fund (IMF) panel discussion on April 21, that the US Federal Reserve may have to move “faster” when it comes to raising interest rates. Powell further noted that the US Federal Reserve could apply a rate increase of 50 basis points at the next Fed meeting. Hawk’s Powell comments scared investors, and U.S. stock indexes recorded losses before the weekend began last week.

While global markets are intimidated by Covid and the Hawk Fed, stocks and crypto are recovering after Musk buys Twitter – Finance Bitcoin News
“Global stock markets were mostly lower overnight, led by the biggest drop in Chinese stocks in two years. U.S. stock indexes are moving toward lower openings when the daily session in New York begins. Jim Wyckoff of Kitco.com wrote Monday morning.

On Monday, Wall Street continued to suffer as the Dow Jones Industrial Average, NYSE Composite and S&P 500 reported losses. at 10 a.m. (ET), The Dow lost 415.23 points and by the afternoon it had recovered just over half of its losses. It’s her fault right now set on impending Federal Reserve interest rate hikes and China’s closure due to Covid-19. Chief Capital Strategist at MAI Capital Management, Christopher Grisanti, said Reuters reports that current restrictions in China have raised fears of possible supply chain problems.

“Quarantine in China is getting worse. This is slowing overall economic growth and also creating problems in the supply chain that will continue to make inflation worse and lower wage growth in the United States, ”Grisanti said. “I do not think we have seen the bottom yet. We haven’t had so many sales yet where we have huge quantities “, added the strategist.

Gold and cryptocurrency markets suffer, portfolio manager says “markets are struggling”

Gold and cryptocurrencies have also been on a downward trend lately. The crypto-economy has lost billions over the past week, slipping back below the $ 2 trillion mark. The number of the ten largest digital assets has recorded losses between 2 and 10% over the last seven days. Moreover, the price of one ounce of pure gold has experienced a certain percentage loss in the last 24 hours.

One ounce of pure gold has lost 1.6% in value over the past day, and one ounce of pure silver has lost 2.04%. Gold prices have also stagnated in the last 30 days, and one-month statistics show that an ounce of gold in USD rose by a slight 0.39%. Silver, on the other hand, has fallen more than 3% in the last 30 days. The decline in the value of precious metals is also present blamed on the Chinese Covid-19 epidemic and current U.S. Treasury yields it could attract investors to gold.

While global markets are intimidated by Covid and the Hawk Fed, stocks and crypto are recovering after Musk buys Twitter – Finance Bitcoin News
Traffic price of gold on April 25, 2022, according to goldprice.org.

Steven Violin, portfolio manager at FLPutnam Investment Management Co., told Marketwatch interview April 23 to invest investors in “very strong forces”. Violin noted that it is very likely that no one can predict what will happen to the economy. “The huge economic momentum since the recovery from the pandemic is seeing a very rapid change in monetary policy,” Violin said. “Markets are struggling, like all of us, to figure out how this is going to play out. I’m not sure anyone really knows the answer. “

U.S. stocks and cryptocurrencies are erasing daily losses after Musk bought Twitter

Despite the downturn in the stock market and the recent losses of the crypto economy, both stocks and cryptocurrency prices bounced after Twitter announced that Tesla’s Elon Musk bought Twitter. The entire crypto economy jumped from $ 1.93 trillion to $ 1.96 trillion after the announcement. After falling below the $ 40,000 mark, BTC once again jumped back above the $ 40,000 region.

Major U.S. stock indexes recovered from morning losses, as the NYSE, Dow, S&P 500 and Nasdaq erased most of their daily losses. As Wall Street trading day drew to a close, major indexes flashed from red to green. After Musk bought the company, current Twitter CEO Parag Agrawal said: “Twitter has a purpose and relevance that affects the whole world. Deeply proud of our teams and inspired by work that has never been more important. ” Stock investors and crypto market participants seem to like the fact that Musk bought the company for social networks.

Labels in this story

Increase the rate by 50 basis points, Central Bank, Christopher Grisanti, COVID-19, Crypto, crypto economy, DOW, dow jones, Elon Musk, stocks, FLPutnam Investment Management, Fed, finance, gold, Gold Down, Investors, jerome powell, May Capital Management, Market capitalization, NYSE, Precious Metals, rate increases, S&P 500, silver, Steven Violin, stock exchange indices, stocks, Twitter, Under $ 2 trillion, Wall Street

What do you think about today’s global markets? Do you expect markets to continue to slide or do you think there is a recovery in the near future? Tell us what you think about this topic and the economy in the comments section below.

While global markets are intimidated by Covid and the Hawk Fed, stocks and crypto are recovering after Musk buys Twitter – Finance Bitcoin News

Jamie Redman

Jamie Redman is a news anchor on Bitcoin.com News and a financial technology journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about disruptive protocols appearing today.




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