S&P 500 takes steps towards record high
The S&P 500 rose for the third consecutive session to start the trading week, taking the benchmark U.S. index closer to reaching a new all-time high.
Monday’s rise comes after the index has mainly consolidated so far this month. After weaker than expected Non-farm payrolls figures interrupted a recent bull run.
However, with the Chicago Board releasing its Consumer Confidence index tomorrow. Many believe that we could see a strong indication that Americans are ready to spend.
Tomorrow’s forecast for the CB report is expected to come in at 119, which is slightly below the 121 reading seen the month prior.
As of writing, the S&P 500 was trading 1.27% higher, with the Dow Jones up 0.75%.
Bitcoin rebounds after weekend selloff
Undoubtedly, last week was one of the worst in cryptocurrency trading so far this year. Bitcoin lost the most 2021 gains thus far.
This continued over the weekend, as BTCUSD fell to as low as $31,288. After trading above $42,000 earlier in the week.
The selling which began after tweets from Elon Musk, continued as China cracked down on crypto mining. Leading to more ‘Bitcoiners’ liquidating positions.
However, to start the week many seemed to have “bought the dip”. Bitcoin held its long-term floor, rising to an intraday high of $38,603.
BTCUSD has recently fallen back down to its January valuation, prior to Tesla’s investment in the cryptocurrency. However many believe there could still be further selloffs ahead.
Oil price rise as energy demand increases
Keeping up with the theme of rebounding. Oil prices rose on Monday as demand for the energy overcame concerns that Iran could be set to increase production.
With the possibility of the U.S. lifting sanctions on Iran. Tehran could flood the market with more oil, creating a potential oversupply.
However, with the European Union recently deciding to ease lockdown measures for tourists this summer. Demand for oil could be set to match the growing supply.
As a result, WTI crude rose to an intraday high of $66, after trading as low as $61 on Friday.
Goldman Sachs believes prices may hit as high as $80 per barrel by the fourth quarter of the year.
Quote of the day – “Every trader has strengths and weaknesses. As long as you stick to your own style, you get the good and bad in your own approach.”– Michael Marcus
Senior Market Analyst