U.S Indices on the rise after 3 days in the red

U.S. Indices rebound as jobless claims decline

After three consecutive sessions of decline, U.S. indices rebounded on Thursday as Jobless Claims fell to their lowest level in over a year.

Initial claims for state unemployment benefits dropped by 34,000 to 473,000 for the week which ended May 8th.

Today’s figures were the lowest since March last year, when lockdown restrictions and closures of all nonessential businesses were first put in place.

Markets posted gains as today’s number beat the expected sum of 490,000 applications for the latest week.

As of writing both the Dow Jones and S&P 500 were trading higher.

Bitcoin falls on Musk tweets

Bitcoin fell by as much as $10,000 in today’s trading session as Elon Musk tweeted that Tesla would no longer accept the cryptocurrency.

In a move which caught the market by surprise, the Tesla CEO tweeted that; “Tesla has suspended vehicle purchases using Bitcoin. We are concerned about the rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel”.

BTCUSD fell to an intraday low of $45,321 on Thursday, after trading as high as $54,818 earlier in the session.

Musk added that, “Cryptocurrency is a good idea on many levels, and we believe it has a promising future, but this cannot come at great cost to the environment. Tesla will not be selling any Bitcoin and we intend to use it for transactions as soon as mining transitions to more sustainable energy. We are also looking at other cryptocurrencies that use <1% of Bitcoin’s energy/transaction”.

Many believe that this could have spurred Ethereum’s recent run to $4,000.

FTSE 100 slips as UK COVID-19 cases rise

The FTSE 100 fell on Thursday, as data released in the UK showed that coronavirus cases had risen by the most since April.

Reports showed that there were 2,657 new cases of COVID-19 on Thursday, which is up from 2,284 new cases the day prior, which is the biggest daily increase since April 27th.

Despite this, it was shown that over 184,000 people had received a first dose of a COVID jab today, meaning that close to 36 million Brits have now had their first dose.

This means that around 68% of the United Kingdom’s adult population is now vaccinated, which is one of the largest in Europe.

Nonetheless, the FTSE 100 closed 0.59% lower on the news.

Quote of the day – “The fundamental law of investing is the uncertainty of the future.”

– Peter Bernstein

Eliman Dambell

Senior Market Analyst