S&P 500 drops after securing record high
The benchmark S&P 500 recorded a new high on Monday, as markets awaited this month’s highly anticipated Fed meeting.
Markets rallied to an intraday high of 4,256 to set a new all-time record before selling off shortly after, due to concerns on how the Fed might handle rising inflation.
Despite the Federal Reserve having already stated that it would only hike rates once inflation moves above 2%, many believe that the pace at which it is rising could force the Central Bank to act with more urgency.
After hitting the record high, the S&P 500 fell to a day’s low of 4,233, and now trades close to 4,235.
As of writing the Dow Jones traded 0.76% lower, whilst the NASDAQ was up 0.46%.
Bitcoin rallies on Paul Tudor Jones endorsement
After trading in consolidation for the past 2-weeks, Bitcoin prices rallied to start the week, after being endorsed by Paul Tudor Jones.
The legendary hedge fund trader today boosted Bitcoin by stating that he sees the cryptocurrency as a good “diversifier”.
During an interview, Tudor Jones stated that, “For me, it’s just a way of foundationally looking at how do I protect my wealth over time. It’s a great diversifier. Again, I look at bitcoin as a story of wealth. I look at crypto as a story of wealth. Others will argue this is a different ecosystem, it’s transactional in nature”.
As a result of these words BTCUSD rose to an intraday high of $41,062, which is its highest level in close to 14-days of trading.
Markets were also buoyed by news that Elon Musk was reportedly willing to once again accept Bitcoin for Tesla transactions in the future.
FTSE 100 rises despite lockdown setback
In the United Kingdom, it was reported today that Prime Minister Boris Johnson was considering delaying further easing of lockdown restrictions.
The restrictions which were due to be lifted on June 21st would have allowed for further parties of more than six to gather in doors, and the re-opening of nightclubs.
Many believe that the potential delay comes in response to the “Delta” COVID-19 variant, which has seen cases rise considerably in the last week alone.
Delta is said to have originated from India and is said to be more transmissible than other iterations of the virus.
Despite this, the FTSE 100 closed higher in today’s trading session, climbing to as high as 0.18% on the day.
Quote of the day – “The secret to being successful from a trading perspective is to have an indefatigable and an undying and unquenchable thirst for information and knowledge.”– Paul Tudor Jones