Wall Street hit by crypto slump, ASX set to rise
Strategy, the company formerly known as MicroStrategy and now raising money solely to buy Bitcoin, lost 10.9 percent. It said it raised $US1.44 billion ($2.1 billion) in US dollars rather than Bitcoin by selling stock to help pay dividends from preferred shares and interest on its debt.
On the winning side of Wall Street was Synposys, with an increase of 3.5 percent. It was stated that Nvidia will invest $2 billion in its shares as part of the expanded partnership. Nvidia, which has become Wall Street’s most influential stock, turned from an early loss to a 1.2 percent gain.
Meanwhile, the market has had a mixed reaction to what looks like a strong start to the holiday shopping season. Consumer spending during Black Friday and Cyber Monday was expected to beat expectations for retail sales, despite uncertainty about the outlook for the U.S. economy.
Ross Stores rose 1 percent and Williams-Sonoma rose 1.4 percent. But Best Buy fell 1.4 percent.
Indices in foreign stock markets followed a mixed course due to the sharp movements.
Loading
France’s CAC 40 Index lost 0.2 percent, partly driven by a 5.7 percent loss for Airbus.
The European aviation giant said on Monday that most of its fleet of 6,000 A320 passenger jets had received an update following a software glitch over the weekend that could affect flight controls. Travelers faced minor glitches heading into the weekend as airlines around the world scrambled to roll out software updates after Airbus warned of the problem on Friday, one of the busiest travel days of the year.
Japan’s Nikkei 225 lost 1.9 percent on concerns about the possibility of higher interest rates. Japan’s benchmark interest rate has remained near zero for years in hopes of boosting the economy. Currently, inflation is above the Bank of Japan’s target of approximately 2 percent.
In the bond market, the yield on the 10-year Treasury bond increased from 4.02 percent to 4.09 percent on Friday.
It briefly slowed its morning rally after a report showed U.S. manufacturing activity contracted more last month than economists expected. The report, which is weaker than expected, may give the Fed more room to maneuver regarding interest rate cuts.
Jobs are under pressure from manufacturers, with a majority saying they are still focused on managing headcount rather than hiring, according to a survey by the Institute for Supply Management. Some manufacturers also said tariffs continue to complicate matters.
“Conditions are much more challenging in terms of supply chain uncertainty than during the coronavirus pandemic,” one manufacturer told ISM.
access point
The Market Summary newsletter is a summary of the day’s transactions. Let’s each take ittoday afternoon.
