Please note ThinkMarkets does not provide CFD services to residents of the US.

Please note ThinkMarkets does not provide CFD services to residents of the US.

Learn To Trade
 
Indicators & Chart Patterns

Deepen your knowledge of technical analysis indicators and hone your skills as a trader.

Find your detailed guides here
Trading Glossary

From beginners to experts, all traders need to know a wide range of technical terms. Let us be your guide.

Learn more
Knowledge Base

No matter your experience level, download our free trading guides and develop your skills.

Learn more
Learn To Trade

Trade smarter: boost your skills with our training resources.

Create a live account
Market Analysis
 
Market News

All the latest market news, with regular insights and analysis from our in-house experts

Learn more
Economic Calendar

Make sure you are ahead of every market move with our constantly updated economic calendar.

Learn more
Technical Analysis

Harness past market data to forecast price direction and anticipate market moves.

Learn more
Live Webinars

Boost your knowledge with our live, interactive webinars delivered by industry experts.

Register now
Special Reports

Engaging, in-depth macroeconomic analysis and expert educational content from our in-house analysts

Learn more
Market Analysis

Harness the market intelligence you need to build your trading strategies.

Create a live account
Partnership
 
Affiliate Programme

Grow your business and get rewarded. Find out more about our Affiliate Programme today.

Learn more
Introducing Broker

ThinkMarkets ensures high levels of client satisfaction with high client retention and conversion rates.

Learn more
Proprietary Trading

Partner with us to build your own prop trading business. Enquire with our account managers today.

Learn more
White Label

We supply everything you need to create your own brand in the Forex industry.

Learn more
Regional Representatives

Partner with ThinkMarkets today to access full consulting services, promotional materials and your own budgets.

Learn more
Refer a friend

Receive $50 for you and your friend when you convert them into an active trader of ThinkMarkets.

Learn more
Partnership

Plug into the next-gen platforms and the trades your clients want.

Partner Portal
About ThinkMarkets
 
Sponsorships

Check out our sponsorships with global institutions and athletes, built on shared values of excellence.

Learn more
About Us

Find out more about ThinkMarkets, an established, multi-award winning global broker you can trust.

Learn more
Careers

Discover a range of rewarding career possibilities across the globe

Apply now
ThinkMarkets News

Keep up to date with our latest company news and announcements

Learn more
Trading Infrastructure

When it comes to the speed we execute your trades, no expense is spared. Find out more.

Learn more
Contact Us

Our multilingual support team is here for you 24/7.

Learn more
About ThinkMarkets

Global presence, local expertise - find out what sets us apart.

Create a live account
Log in Create account

Can S&P 500 follow Bitcoin’s lead and hit new high?

Fawad Razaqzada Fawad Razaqzada 20/10/2021
Can S&P 500 follow Bitcoin’s lead and hit new high? Can S&P 500 follow Bitcoin’s lead and hit new high?
Can S&P 500 follow Bitcoin’s lead and hit new high? Fawad Razaqzada
Sentiment remained upbeat again today, as the rally on Wall Street stretched for the sixth consecutive day. The S&P 500 was inches away from hitting a new record high, while other US indices also climbed along with European shares. The positivity was in part due to mostly encouraging company earnings results, while rising crude oil prices boosted energy stocks and Bitcoin hit fresh records, which further supported risk sentiment across the board.

S&P 500Source: ThinkMarkets and TradingView.com

Reflecting investors’ insatiable appetite for risk, Bitcoin hit a new all-time high earlier, sending crypto-related shares higher with BITO – the newly-launched Bitcoin-futures-backed ETF – rising another 4% shortly after the markets opened. Crypto investors are sensing that something big is happening with more money being poured into the newly-launched BITO ETF. All this is helping to underpin expectations that more retail and institutions are going to get involved, and thus demand for Bitcoin, Bitcoin futures and ETFs are going to rise further. Indeed, after the successful launch of BITO, regulators in the US and elsewhere will be less resistant to more Bitcoin and other crypto ETFs. As a result, I expect we'll see increased institutional adoption of bitcoin and crypto as an investment vehicle going forward.
 
For equity investors, it appears as though investors have forgotten about inflation, higher taxes and other risks that the economy is facing either right now or in the months ahead. Concerns over higher prices and lower economic growth – or stagflation – had weighed heavily on the markets in September. But with those losses having been recouped, almost entirely, it appears as though investors are more optimistic about growth than inflation.
 
We have had some decent economic numbers from the US of late, such as the ISM manufacturing and services PMIs, as well as retail sales. Meanwhile on the jobs front, the unemployment rate has fallen further and wages have improved more than expected. What’s more, the latest jobless claims data have fallen to fresh post-pandemic lows. The world’s largest economy is thus ticking over nicely, keeping hopes
 
Also helping to boost sentiment have been central bank officials who have started to acknowledge the inflation risks, but at the same time have also indicated that only modest policy tightening will be needed. Previously, investors had feared that if central banks had pursued aggressive policy tightening, this might have derailed the economic recovery completely. But apparently, investors are now no longer so fearful about those risks. This is something that might come back to haunt investors at some point down the line.
 
 
At the time of writing, though, European stock indices were also rising along with US indices and cryptos. Sentiment on Wall Street has been supported by stronger earnings results. Last week, US banks reported above-forecast numbers, while Verizon Communications shares rose on the back of its results today. Not all companies rose, however, with Novavax plunging on another vaccine delay and Netflix investors were disappointed with an underwhelming outlook. Attention will be on Tesla, which will report after the close tonight. Meanwhile, earnings from Europe are also coming in thick and fast, with Nestle results boosting shares of food and beverage companies and Deliveroo (wait for it…) delivered (I know, I know) a faster growth outlook.
Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.

Related articles:

Weekly Index Dividends

By ThinkMarkets

25/03/2024

Weekly Index Dividends

By ThinkMarkets

18/03/2024

Weekly Index Dividends

By ThinkMarkets

11/03/2024

Weekly Index Dividends

By ThinkMarkets

04/03/2024

Weekly Index Dividends

By ThinkMarkets

26/02/2024

Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
Back to top