Stocks Rebound as Dollar Dips, SEC to Decide on Bitcoin ETF by Wednesday

In the dynamic landscape of global markets, staying ahead is key to successful trading. Whether you’re a seasoned investor or just getting started, it’s crucial to monitor the latest market insights to make informed decisions.

Stocks Bounce Back

Monday’s trading session saw US Stocks bounce back from recent weakness. The Dow Jones Industrial Average rose 216 points (+0.58%) to 37,683, the S&P 500 gained 66 points (+1.41%) to 4,763, and the Nasdaq 100 jumped 343 points (+2.11%) to 16,649. The upward momentum was driven by a combination of factors, including receding inflation worries and positive economic data.

The semiconductor sector led the charge, with Nvidia (NVDA) jumping 6.43% to a record close of $522.53.

Advanced Micro Devices (AMD) rose 5.48%, Lam Research (LRCX) gained 3.38%, while Intel (INTC) was up 3.33%.

The semiconductor sector is expected to continue to benefit from strong demand in 2023. The global chip shortage is showing signs of easing, but there is still a significant backlog of orders to fulfil.

In addition, growing demand for semiconductors from various industries, including automotive, data centres, and smartphones, is expected to keep the sector’s momentum in an upward trajectory.

Forex: Dollar Pause, Yen Strengthens

The US Dollar paused its rally on Tuesday, while the Euro and Yen strengthened. This was driven by the Dollar’s weakness against most major currencies.

The euro’s gains were supported by data showing that the eurozone’s retail sales grew in November. The yen’s strength was attributed to data showing that Japan’s core inflation rate declined in December.

Bitcoin: Nearing Two-Year Highs

Bitcoin surged to its strongest level since April 2022 on Tuesday, as investors anticipated imminent approvals of spot bitcoin exchange-traded funds (ETF).

Bitcoin price broke through $47,000 before settling at around $46,771 on Tuesday.

The growing acceptance of bitcoin as a legitimate asset class is fuelling investor enthusiasm ahead of the US SEC’s potential approval of spot bitcoin ETFs. Should the SEC approve, the entire crypto market could witness greater liquidity and institutional accessibility to the cryptocurrency markets.

Market Outlook: Mixed Signals, Continued Vigilance

The market outlook remains mixed, with both positive and negative signals. On the one hand, receding inflation expectations and positive economic data are providing support for stocks and commodities. On the other hand ongoing uncertainty surrounding the Fed’s rate policy and geopolitical tensions are keeping investors on edge.

As we navigate the evolving market landscape, it’s crucial to stay informed and make informed decisions based on a comprehensive analysis of market data. By understanding the key factors driving market movements, investors can make more informed decisions and reduce their risk exposure.

For further insights, check out OneRoyal’s Facebook, Instagram and Twitter pages and stay ahead of the financial markets, updated daily with market news and trading insights.

Disclaimer: This article is not investment advice or an investment recommendation and should not be considered as such. The information above is not an invitation to trade and it does not guarantee or predict future performance. The investor is solely responsible for the risk of their decisions. The analysis and commentary presented do not include any consideration of your personal investment objectives, financial circumstances, or needs.

Uncover the week's trends as tech stocks surge, US Dollar weakens and SEC's Bitcoin ETF decision nears.

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