US Stock Market Rebounds on Economic Indicators and Treasury Decision
The US stock market rebounded this week after hitting a three-week low, driven by short-covering ahead of the weekend and positive economic indicators. The Dow Jones jumped 1%, while the S&P 500 and Nasdaq gained 0.4%. Axel Rudolph, chief technical analyst at IG, attributed the recovery to 'short-covering'.
Bitcoin price also surged, jumping 6% to $77,000, its first move above $70,000 since late May. Nigel Green, head of deVere Group, stated that Bitcoin trades on liquidity before anything else and that the Treasury's decision to raise long-term bond buybacks was a key signal.
The developments boosted stocks across the listed crypto sector, including Coinbase, Robinhood, and Strategy. However, Nvidia fell on reports it is in advanced discussions to make an investment in Cloverleaf Infrastructure, a company that arranges power for data-centre projects.