Tech prices persistently surge at a rapid pace
Wall Street keeps bucking the trend, with only the Dow Jones losing ground on Monday, largely due to UnitedHealth's stock slide. US investors are seizing the day to dive back into the gold market, as optimism persists following Monday's rally.
Tech-heavy US indices continue to soar, with the Nasdaq closing Tuesday up 1.6% at 19,010 points and the broader S&P 500 gaining 0.7% to 5,886. The Dow Jones Industrial Average, however, took a hit, falling 0.6% to 42,140, with UnitedHealth's plummeting stock pushing it downwards.
Unexpectedly, US inflation eased in April despite President Donald Trump's tariff hikes. The inflation rate dropped to 2.3% from 2.4% in March. Economists had anticipated 2.4%. "We're not seeing any significant impacts from the tariffs yet, it's still too early," said Mike Reynolds, chief strategist at Glenmede. "What we are seeing is that inflation has remained quite stable so far."
The Dollar Index took a dip, falling 0.8% to 100.967 points after it had rallied more than 1% at the start of the week due to the easing of tensions between the US and China. Rodrigo Catril, currency strategist at National Australia Bank, commented, "The US-China trade deal surpassed expectations, indicating the US government's sensitivity to the economic ramifications of the tariffs."
Gold investors saw a perfect opportunity to jump back into the market after a recent price dip. Gold prices rose half a percent to $3,248 per troy ounce following a 3.5% drop the day prior. Bart Melek, chief strategist at TD Securities, remarked, "Gold prices slumped after the US-China agreement news on Monday. However, the ongoing 30% tariffs on Chinese goods continue to put a strain on the economy."
Coinbase Makes History: First Crypto Company in S&P 500
Coinbase stole the spotlight among individual stocks, rallying nearly 24%. The largest publicly traded cryptocurrency exchange will replace Discover Financial in the S&P 500, marking its debut on May 19. The move makes Coinbase the first crypto company to be included in the index.
Nike kept pace, gaining 11.8%. Despite ongoing US trade policies, the appeal of running shoes backed by Swiss tennis star Roger Federer has strengthened the company's confidence among board members. Nvidia shares also experienced a climb of 5.6% following its partnership with Humain, Saudi Arabia's new AI startup.
However, UnitedHealth's stock took a hit, plummeting nearly 18%. The company's CEO, Andrew Witty, is stepping down for personal reasons, accompanied by the withdrawal of the company's 2025 guidance. Hertz's stock also suffered a significant fall of nearly 17% due to disappointing quarterly results.
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Source: ntv.de, ino/rts
- Stock Prices
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- Wall Street
- Dow Jones
- Cryptocurrency
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- Inflation
The community might be interested in understanding the implications of Coinbase, a cryptocurrency exchange, becoming the first crypto company to be included in the S&P 500, impacting the employment policy within the organization. The economic outlook could also affect the finance and business sectors, as the easing of inflation and the soaring tech-heavy indices, such as the Nasdaq, may influence technology investments and employment policies.
