Wall Street gained more than $400,000 from the midterm elections and a weaker-than-expected CPI report.
November’s second and third weeks saw an improvement in its Wall Street gains, posting four days of gains out of five. On Wednesday, Wall Street declined after the two-year low in BTC prices. For the first time since 2020, BTC fell to $16,000 due to increased tech stock volatility.
It was layoff week, or the mega-cap, and Twitter had laid off a large number of its staff.
Meta will join the league too and start laying off its workers after seeing a continuous falling trend in its stock prices.
Snapchat’s CEO announced that the company had cut off 20.000 of its workforce this month; Neta will lay off thousands, and Appel and Amazon will freeze hiring for the moment. The news caused a sell-off in tech stocks, increasing the risk in the cryptocurrency industry. Reports and data show that the losses were catastrophic among investors, and the crypto market is crashing. Another factor is the Binance deal—rather than being a scandal, it is a hero and the platform’s founder. On Friday’s opening hours, BTC prices jumped by 4.6% to $17,440, followed by increases in most crypto assets, including ETH and BNB.
On Thursday’s trading day, the S&P 500 featured its best high-performing day for the first time since 2020. The feature rose by 5.5% in a single day, and today it’s up by 0.5%. The Nasdaq feature posted a 1.1% climb today, and the Dow is going for a 1% increase by the end of today’s session.
According to Bloomberg data, the stock market added roughly $400,000 billion on Thursday, and the number just increased on Friday.
Over the past 11 months, the FED has implemented high and aggressive interest rate hikes in its attempt to shrink inflation. The previous data showed that the FE will not start easing its monetary policy until there is evidence that inflation is shrinking.
The October CPI report delivered outstanding results and true evidence that are more likely to help ease the ultra-aggressive interest hikes.
The food and service prices posted a 7.7% year-over-year increase, down by 0.2% from Bloomberg’s estimation. Food prices remain high, with a 6.3% year-over-year increase and a 0.3% month-over-month increase. As for grocery store prices, the October CPI copy shows a 12.4% year-over-year increase.
For now, inflation is still hot, yet the data indicate the FED might consider raising interest rates by at least 50 basis points in the next meeting.
Globally speaking, many companies are reconsidering avoiding using cryptocurrencies in their transactions, the reason being the increase in their volatility.
Other features and indexes enjoyed the good news on Thursday and Friday. Furthermore, crude oil has recovered and is now trading at $88,6 per barrel. The 10-year treasury yield in the United States fell to 3,829, adding points for an easing interest hike.
For now, the market is enjoying its short-term gains. But the data also supports the probability of a recession if the FED fails to bring inflation to the targeted rate of 2-3%