Stocks rally but crypto assets struggle

Chris Beauchamp IG

Results from Nvidia and a September jobs report appear to have sounded the all clear for markets, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.

Stocks rally as key events recede into the past

Now that we are past the Nvidia earnings and payroll release, it feels like markets can rally again. It seems remarkable that just a 5% pullback can reset sentiment sufficiently for markets to react positively to earnings, but that is what has transpired. Stocks are up, almost uniformly across the board, while volatility is down. This is classic risk-on behaviour. If investors are still worried that the Fed won’t cut in December, they’re not showing it.

Crypto assets fail to join the party

It might be rally time for stocks, gold, oil and others, but the joy has not spread to cryptocurrencies, which have mostly struggled all day. Neither Nvidia results nor the payrolls report have too much relevance on crypto assets directly, but it is perhaps a sign of how weary investors have become in recent months, having seen the space struggle even as stock markets make record highs.

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Chris Beauchamp

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