Bitcoin dips below $100k, while markets await US labour report to guide Federal Reserve decisions
On Thursday, US stocks dropped as investors turned their focus to Friday’s employment report, CNBC reported.
The Dow Jones Industrial Average fell 248.33 points, or 0.55 percent, closing at 44,765.71. The Nasdaq Composite lost 0.18 percent to end at 19,700.26, while the S&P 500 dipped 0.19 percent to settle at 6,075.11.
The declines followed record-setting performances in the previous session, where all three indices posted new highs.
Brian Leonard, a portfolio manager at Keeley Teton, remarked on the US market’s current state.
Speaking with CNBC, Leonard said, “The problem you have is that valuations are stretched across the board. You’re sitting at records, but there’s not a lot of enthusiasm or euphoria. Historically, when the records happened, the valuations were more reasonable.”
Traders are closely watching November’s labour data, which economists polled by Dow Jones expect will show 214,000 new jobs added. This report is expected to guide the Federal Reserve’s rate decision at its upcoming policy meeting.
Federal Reserve Chair Jerome Powell, in remarks on Wednesday, expressed cautious optimism about the economy’s resilience. “The labour market is better, and the downside risks appear to be less in the labour market,” he stated.
“Growth is definitely stronger than we thought, and inflation is coming [out] a little higher. So, the good news is that we can afford to be a little more cautious as we try to find neutral.”
In the cryptocurrency sector, Bitcoin briefly rose above $100,000 for the first time late Wednesday before retreating below that level on Thursday.
The overnight surge had temporarily lifted crypto-related stocks, with MicroStrategy and Coinbase experiencing gains.
However, those advances faded, as MicroStrategy fell 4.8 percent and Coinbase declined 3.1 percent.
