US stocks gained traction in a choppy session as investors assessed the prospects for a continued rally while turmoil in the crypto market weighed on risk sentiment.
(Bloomberg) — US stocks gained traction in a choppy session as investors assessed the prospects for a continued rally while turmoil in the crypto market weighed on risk sentiment.
The S&P 500 ticked higher after falling 0.3% and the tech-heavy Nasdaq 100 also caught bids.
Meanwhile, cryptocurrencies resumed a selloff Friday amid FTX’s deepening woes. In the latest twist in the saga, Sam Bankman-Fried’s crypto empire filed for Chapter 11 bankruptcy in Delaware. Cash Treasuries trading is closed for Veterans Day.
Stocks soared the most since 2020 on Thursday after a better-than-forecast cooling in US inflation improved the prospects of a dovish tilt by the Federal Reserve.
On Friday, the University of Michigan’s preliminary November survey showed US consumer inflation expectations increased in the short and long run while sentiment retreated.
The dollar slumped 1% on Friday, heading for a fourth successive week of losses.
It is also the biggest weekly drop since the pandemic-fueled volatility in March 2020.
Pinduoduo Inc. and JD.com Inc. jumped, leading US-listed Chinese stocks higher amid growing optimism Beijing is on its way to ending the crippling Covid Zero policy.
A gauge of Hong Kong-listed technology stocks surged 10% after China reduced the amount of time travelers and close contacts must spend in quarantine.
The pivot came hot on heels of a call by leaders in Beijing for more precise and targeted virus control measures. The measures also validate persistent market expectations for an end to China’s Covid Zero policy, which officials have repeatedly denied.
Key events this week:
- US University of Michigan consumer sentiment, Friday
Some of the main moves in markets:
Stocks
- The S&P 500 rose 0.5% as of 10:34 a.m.
New York time
- The Nasdaq 100 rose 0.9%
- The Dow Jones Industrial Average fell 0.3%
- The Stoxx Europe 600 rose 0.2%
- The MSCI World index rose 1.5%
Currencies
- The Bloomberg Dollar Spot Index fell 1%
- The euro rose 1% to $1.0314
- The British pound rose 0.4% to $1.1759
- The Japanese yen rose 1.2% to 139.29 per dollar
Cryptocurrencies
- Bitcoin fell 5.5% to $16,833.25
- Ether fell 4.5% to $1,262.09
Bonds
- The yield on 10-year Treasuries was little changed at 3.81%
- Germany’s 10-year yield advanced 15 basis points to 2.16%
- Britain’s 10-year yield advanced six basis points to 3.35%
Commodities
- West Texas Intermediate crude rose 4% to $89.94 a barrel
- Gold futures rose 0.7% to $1,765.50 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Georgina Mckay, Masaki Kondo, Tassia Sipahutar, Farah Elbahrawy and Srinivasan Sivabalan.
More stories like this are available on bloomberg.com
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