Wall Street begins a new week of bullish trading, thanks to gains affecting technology stocks and shares of those companies benefiting from the reopening of economies.
The Dow Jones jumped over 170 points (+ 0.50%), to 34,378 points; the S&P 500 advanced by 0.82% to approximately 4,189 points, while the Nasdaq rose by 1.19% to 13,631 points.
Crypto stocks are also positive, in the wake of Bitcoin’s recovery after the weekend crash, which sank it at $ 31,772.43.
Already last week, the digital currency had sunk by 30% in a single session, plummeting to around $ 30,000.
Now the world‘s number one cryptocurrency bounces over + 11% to $ 37,719, confirming its volatility. Ethereum soars over + 20% to $ 2,387.
Among the stocks exposed to Bitcoin, Elon Musk’s Tesla rises, up by more than 2%. Coinbase also did well, after Goldman Sachs started hedging the trading platform’s stock with a buy rating.
You also buy on the stocks of companies benefiting from the reopening trade, such as Gap, Carnival and United Airlines.
Tom Lee, head of the research division at Fundstrat Global Advisors, believes that US equities still have room to “rise significantly”, thanks to the collapse of cases of Covid-19 patients in the United States.
It should be noted that last week the Dow Jones fell 0.5% on a weekly basis, the S&P 500 lost 0.4%, the Nasdaq Composite gained 0.31%, interrupting four consecutive weeks of declines.
In a note to clients, analysts at JP Morgan explained Wall Street’s recovery with the Buy The Dip phenomenon:
“Despite the collapse of the crypto markets and the somewhat hawkish (ie hawkish) FOMC (monetary policy arm) minutes, another equity dip has been bought by investors. This ‘buy the dip’ mentality is showing very strong this year, and is providing support by preventing any small correction in equities and risk markets from becoming more widespread.