Wall Street rallies after a better-than-expected earnings report from Walmart and Netflix.
The crypto market just ate up an estimation of $126 billion when FTX announced its bankruptcy this week. The vast majority of cryptocurrencies declined massively. Wall Street also took a significant hit on this week’s opening day.
In today’s mid-day trading hours, Wall Street’s main features posted higher gains compared to Friday’s and Monday’s earnings. The crypto market collapse came days after the U.S. administration showed its intuition by supporting the U.S dollar with BTC.
In the last couple of days, FTX officials conducted a mandatory meeting with the U.S authorities after feeling bankrupt enough to seek protection from the court.
Till now, the reports show that there are more than 1 million creditors in the new bankruptcy filing. On the other hand, we have Charlie Munger’s Berkshire Hathaway vice chairman, who commented that cryptocurrencies are merely tools for fraud and deception. He also added that the country didn’t need a currency for kidnappers, and the crypt market is built only on delusion.
A person will only think that Wall Street will endure a harsh week in terms of gains.
Despite the chaotic news, the Wall Street main index opened higher after a delightful earning report from Walmart and outstanding results from Netflix stock prices. Walmart Inc. just posted a new six-month high; its stock prices jumped by 7% on Tuesday’s opening bell. Walmart’s strategy was to deliver discounts and maintain the same pricing strategy despite the effects of inflation.
The company also announced a new $20 share buyback plan. As for Netflix, the company also opened higher on Tuesday, opening at and recording a new seven-month high. In the past seven months, Netflix’s stock price has jumped more than 64%, and today it’s up to $308 per share.
So far so now, November recorded two high weeks, a move that could lower market recession probabilities.
The Nasdaq index jumped by 1,60% to 11,371 basis points, and the S&P 500 index increased by 0,88%. The Dow Jones Industrial Average began the day 0.2% higher. Crude oil remains above $85 and below the $90 per barrel lever, yet its price rose by 1.65% to $87 per barrel.
That said, the U.S and the global economy as well are going through a period of macroeconomic uncertainty. Tech companies, especially start-ups, might be threatened or at risk as a result of the crypto market crash. Especially now, that many technology companies have chosen the crypt route.
Market risks and volatility have increased, while inflation remains persistent, putting pressure on consumers as we approach the holiday season. The data may aid in more easing monetary policy, particularly as US 10-year bonds decline. After exceeding 4.1, the U.S. 10-year Treasury yields posted a continuous decline today, falling 2% to 3.799.0. Plus, housing market prices are dropping at a reasonable rate. All of these indicators point to the Fed raising interest rates again in December.