Cryptocurrency Giant Coinbase Soars as Tech Values Reach New Heights
Technology values soar at an unprecedented pace
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Strong vibes are flowing through Wall Street after a promising first half of the week, with only the Dow stumbling, largely due to UnitedHealth's shock stock plunge. Investors in the States are jumping at the opportunity to re-enter the gold market.
Tuesday's US inflation report has given tech-centric US indices a boost. The Nasdaq closed with a 1.6% gain, settling at 19,010 points, while the S&P 500 grew by 0.7% to 5,886. The resilient Dow Jones Industrial Average, however, slid 0.6% to 42,140. UnitedHealth's share dive weighed heavily on the index.
Surprisingly, US inflation dropped in April, the month of President Donald Trump's tariff hikes. The inflation rate plunged to 2.3%, down from 2.4% in March. Economists anticipated 2.4%. "We're not witnessing significant effects from the tariffs yet, it's still premature," said Glenmede's Chief Strategist, Mike Reynolds. "However, it's evident that inflation has managed to remain constant thus far."
The Dollar Index took a 0.8% hit, landing at 100.967 points after gaining over 1% at the outset of the week. A thaw in US-China relations, following weeks of tension, alleviated fears of a recession. "The trade deal is better than the market anticipated," said National Australia Bank's Currency Strategist, Rodrigo Catril. "It's a sign that the US administration is exceptionally sensitive to the economic impact of the tariffs."
Gold investors seized the current dip in prices to re-enter the market. The precious metal inched up half a percent to $3,248 per troy ounce, following a 3.5% drop the previous day. "Monday witnessed a strong correction in the gold price owing to the US-China agreement," said TD Securities' Chief Strategist, Bart Melek. "Nevertheless, the 30% tariffs on Chinese goods remain in place, which continues to negatively impact the economy."
Coinbase Makes Its S&P 500 Debut
Coinbase stole the spotlight, zooming nearly 24%. The giant crypto exchange is slated to replace Discover Financial Services in the S&P 500 on May 19, becoming the first crypto company to ever infiltrate the index. The surge in Coinbase shares occurred earlier, on May 13, following the announcement of its inclusion in the S&P 500. This news resulted in a significant increase in Coinbase's stock price, with shares surging to around $257 on May 13.
Adidas was also popular, growing by 11.8%. The surging demand for running shoes from Swiss tennis phenom Roger Federer-endorsed brand On is invigorating the company's spirits, despite turbulent US trade policies. Investors were also quick to scoop up Nvidia shares. The chipmaker and Saudi Arabia's fresh AI startup Humain announced a partnership, causing Nvidia shares to soar by 5.6%.
However, it was a tough day for UnitedHealth, with its CEO Andrew Witty stepping down for personal reasons, and the company suspending its 2025 outlook. ** Hertz**'s shares took a tumble nearly 17% following disappointing quarterly results.
Read the latest market insights here.
Source: ntv.de, ino/rts
- Cryptocurrency
- Stock Trading
- Wall Street
- Dow Jones
- The community might be interested to know that Coinbase, a cryptocurrency exchange, made its debut in the S&P 500, becoming the first crypto company to enter the index, leading to a surge in its shares.
- As tech values reach new heights, as seen with Coinbase's significant growth, and other stocks such as Adidas and Nvidia rising, investors may want to consider their employment policy and financial investment strategies, particularly in technology sectors, for potential returns.
