The major indices in the United States rallied on Monday as markets anticipated Q1 earnings from some of the world’s largest companies.
FAANG companies, which include Facebook, Apple, Amazon, Netflix and Google (Alphabet) will be reporting first quarter earnings from Tuesday to Thursday this week, with Netflix already reporting last week.
Close to 40% of the S&P 500’s market cap is currently made up of FAANG companies, and many believe we could see new highs from the index this week as a result.
As of writing, the S&P 500 and NASDAQ were in the green, with the Dow Jones trading marginally lower.
Bitcoin rallies as market await Tesla earnings
Another tech heavyweight set to announce its Q1 performance this week is Tesla, and with the company heavily invested in Bitcoin, crypto’s rebounded as a result.
Last week saw Bitcoin fall by close to over 15%, falling to its lowest level since the beginning of March.
BTCUSD ended last week trading at close to $47,000, however with Tesla set to report its earnings after the closing bell, prices of the digital currency spiked.
Prices moved to an intraday high of $54,400, as many anticipate strong numbers from Tesla which recently invested over $1.2 billion in Bitcoin.
Oil prices slow as demand concerns increase
Oil prices continued to move with uncertainty to start the week, as demand for the energy slowed, due to further increases of COVID-19 cases.
One of the world’s biggest consumers of oil, India reported 346,786 new cases of COVID-19 in the last 24 hours, with 2,624 deaths.
As such, the country is now edging towards a national lockdown which would see close to 300,000 barrels per day of crude demand eliminated, according to reports.
WTI prices traded at an intraday low of $60.61, however have risen throughout the day as prices stabilized.
Quote of the day – “Markets are constantly in a state of uncertainty and flux, and money is made by discounting the obvious and betting on the unexpected.”– George Soros