U.S. futures trading is mixed after stocks hit record highs as bitcoin continues to fall

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A strong earnings season has fueled optimism on Wall Street.JOHANNES EISELE / Getty Images

US futures were trading mixed on Friday, after stocks rose to close at record highs the day before.

Equities have remained remarkably strong despite surging inflation, with economic data boosting investor morale.

Yet cryptocurrencies have plummeted in recent days, after a meteoric rally.

US equity futures were mixed on Friday after the S&P 500 and Nasdaq hit record highs the day before, as investors became more optimistic about the economic outlook.

Elsewhere, however, bitcoin fell for the fifth day in a row. It was trading at around $ 56,878, well below the all-time high of over $ 68,000 set just over a week ago.

S&P 500 futures fell 0.1% and Dow Jones futures slipped 0.33%, signaling a lower trading start later in the day. Meanwhile, futures on the Nasdaq 100 were up 0.35%.

The S&P 500 and Nasdaq ended at new highs on Thursday, as corporate earnings continued to impress investors and a drop in weekly jobless claims cooled fears about the US economy.

Overnight, the Chinese CSI 300 closed 1.08% higher, while the Japanese Nikkei 225 climbed 0.5%. At the start of Friday, the continent-wide Stoxx 600 slipped 0.14%.

COVID-19 cases are on the rise in Europe, and Austria said on Friday it would enter full containment on Monday and introduce mandatory vaccinations. The news put regional stocks “up to the wall,” strategists at brokerage IG said in a daily note.

“With the COVID cases increasing in Germany, France and Portugal, there are concerns that today’s announcement indicates where other European countries could be in 2-3 weeks,” they said. added.

Global equities have remained buoyant despite investor concerns over inflation and the likelihood that central banks will soon reduce their support for economies. This is in part because bond yields have remained low, making the stock market more attractive.

The earnings season helped support US stocks in particular. Nvidia jumped 8.25% on Thursday after posting record revenues, while Macy’s and Kohl’s rose after department store chains posted strong profits.

The story continues

New jobless claims in the United States fell to a pandemic low of 268,000 last week, data showed Thursday, in the latest sign that the economic recovery is broadly on track.

Investors will keep a close eye on Washington, where the House is expected to pass President Joe Biden’s “Build Back Better” bill later Friday. He plans to spend $ 1.85 trillion on education, health care and the climate.

Biden’s choice for Federal Reserve chief is also on the agenda – whether to keep Jerome Powell as Fed chairman or to replace him with Fed Governor Lael Brainard. Earlier this week, Biden said he could announce the decision by Friday.

To find out more: 2022 will be “the year of the stock picker” as the index stalls, according to Morgan Stanley. Here are 27 high-quality growth stocks they’re most optimistic about for the New Year.

Cryptocurrencies continued to fall on Friday, with bitcoin down 4.4% to $ 56,878 on the Bitstamp exchange. The world’s largest cryptocurrency has fallen about 17% from its high on November 10.

Analysts attributed the drop to factors such as crypto tax rules in Biden’s $ 1,000 billion infrastructure bill and a recent warning from Beijing regarding crypto mining in China. Some suggest this is a natural pullback after the token hits new highs.

Other cryptocurrencies – such as the ether, the binance coin and the solana – have collapsed in recent days, but reduced those losses on Friday.

Oil prices fell as the coronavirus outbreak in Europe raised concerns about the economic recovery and traders assessed the chances of countries releasing strategic reserves. Brent crude was down 1.83% to $ 79.77 per barrel, while WTI crude was down 1.7% to $ 77.12 per barrel.

Bond yields fell as the yield on the main 10-year US Treasury note fell 2.9 basis points to 1.558%. Yields move in the opposite direction to prices.

Read the original article on Business Insider

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