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US indexes up, stock market rally attempt, cryptos in the green

US indexes up, stock market rally attempt, cryptos in the green

Last updated 11th Aug 2022
Disclosure

All major US futures indexes were up this morning. Nasdaq 100, SP500, and Dow Jones futures rose by 0.8%, 0.6%, and 0.5% respectively. Analysts point out that overnight action in futures won’t necessarily result in actual trading in the next regular session of the stock market. There was a rally attempt in the morning.

Affirm stock jumps

With the announcement of a partnership between Affirm and Target, the former’s stock jumped. Among Affirm’s other partners are Walmart and Amazon. These partnerships reflect the “buy now, pay later” boom in consumer financing, which Affirm is certainly benefiting from. Their stock rose by 20% to 133.70, clearing a handle buy point at that value.

Bitcoin tops $55K

Bitcoin topped $55,000, reaching $55,400 yesterday evening. Ethereum was among Wednesday’s other winners.

MARA, GBTC, and COIN stock climbed by 4.8%, 5.6%, and 4.3% respectively. Being shielded from supply chain issues, software makers are seeing impressive growth. NOW, Fortinet, Palo Alto Networks, Microsoft, Salesforce are all showing strength.

Oil and natural gas prices plummet

Energy stocks tumbled as oil and gas prices declined after soaring to record highs. Treasury yields switched from record highs to end slightly lower. Financials were steady.

Risk of US government default avoided through debt limit offer

After reports that Republicans would let Democrats pass a two-month debt-limit extension, risk of default was assuaged. The offer was made as Senate Majority Leader Chuck Schumer was prepared to enforce a longer-term increase of the debt limit in spite of some GOP opposition. President Joe Biden urged a few major CEOs to issue warnings on the debt limit at a White House meeting.

Progressives, Congress, and the White House have abandoned demands for an expense package of $3.5 trillion. They are aiming for around $2 trillion in spending as well as major tax cuts, but so far there’s no deal.

Market rally prospects

Inflation fears subsided through cheaper energy prices, with Treasury yields retreating from peaks. These developments fueled stock market rally efforts, augmented by hopes for a debt-limit hike resolution. However, the 10-year Treasury yield and energy costs remain in uptrends.

The outlook  

While the stock market rally attempt was positive, the modest gains for investors in growth stocks can disappear as fast as they came. Analysts recommend taking quick partial profits on any decent acquisition and getting ready to hit stop loss.  

Daniela Kirova

Daniela Kirova

Daniela is a writer at Bankless Times, covering the latest news on the cryptocurrency market and blockchain industry. She has over 15 years of experience as a writer, having ghostwritten for several online publications in the financial sector.