August 15, 2024 at 08:39PM
Crypto markets have often been front-runners of market sentiment but it’s not unfolding that way today. Bitcoin is down 3.6% but stocks are at the highs of the day, with the Nasdaq up 2.5%.
The divergence is likely related to worries in the crypto market about Mt. Gox liquidation and distribution. In any case, the Nasdaq Composite is now nearly back to the July 31 closing level. That was the big rally that came with the FOMC decision but was followed by a brutal global rout.
The rally since last Monday in the Nasdaq has been remarkable, particularly if you measure it from the August 5 intraday lows. It’s up 12% from there, which is a great return for a full year for most fund managers.
Part of what’s driving that trade is new life in the AI trade but it’s mostly due to refreshed confidence that global growth is ok and that any slowdown will be met by Fed easing. It’s certainly been an impressive bounce.
This article was written by Adam Button at www.forexlive.com.
