Nasdaq Faces Uncertainty with Economic Indicators and Fed Speeches
Futures for the S&P 500 and Nasdaq 100 each fell by around 0.3%, although the Dow and S&P 500 will end the month up 6.9% and 8.5% respectively, while the Nasdaq, which focuses on technology stocks, rose 10.8% in November. During Cyber Monday, investor attention turned to e-commerce stocks, with Affirm, a "buy now, pay later" company, up nearly 12%, Shopify up nearly 5% and Amazon up 0.7%. On Tuesday, traders await economic data on housing prices and consumer confidence, as well as earnings from CrowdStrike. In addition, Federal Reserve officials, including Chicago Fed President Austan Goolsbee and Fed Governors Christopher Waller and Michelle Bowman, will deliver speeches later in the day, keeping investors alert.
The Nasdaq, like other major US indices, is currently in a state of uncertainty, awaiting crucial data, including this week's PCE data and other economic indicators, to determine its future direction. Prices have entered the overbought territory, as evidenced by the RSI indicator. Investors are carefully monitoring these factors before making decisions on market direction.
Bitcoin Retreats from Recent Highs, Yet Bullish Sentiment Persists
Bitcoin and other cryptocurrencies experienced a slight decline, pulling back from recent highs, yet the overall sentiment among crypto traders remains bullish. Bitcoin's moving away from the 18-month high above $38,000 achieved last week, marking a 30% surge since early October. This rise in Bitcoin's value is primarily attributed to optimism surrounding the potential approval of the first spot Bitcoin exchange-traded fund (ETF) by U.S. regulators, which is expected to attract more investors to the crypto market.
In addition to the ETFs' outlook, Bitcoin has been supported by an improving macroeconomic environment, driven by the assumption that the Federal Reserve has completed its interest rate hikes and could lower borrowing costs early next year. Such a move would favor risk-sensitive assets such as cryptocurrencies and tech stocks. From a technical perspective, the analysts note that despite the recent pause in price action, Bitcoin remains solid and is holding above key support points. Overall, both fundamental and technical factors are contributing to the prevailing positive sentiment in the cryptocurrency market.
Bitcoin is retracting from the $38,000 level and is currently seeking further direction in an environment marked by continuing uncertainty, forming a price range between $38,000 and 35,500.