- Wall Street benchmarks rebound as market players favor mine stocks amid silver’s stellar rise.
- Hopes of US stimulus, jump in vaccinations offer extra support.
- Dow gains 0.76%, S&P 500 and Nasdaq rise 1.65% and 2.55% respectively.
Although silver has been the bull’s favorite on Monday, Wall Street benchmarks also kick-started the busy week on a positive note as market frenzy favored further acceleration in stocks, mainly the mining ones.
The DJIA gained 229 points, 0.76%, to close at 30,211.91 whereas the Nasdaq Composite Index came in first with 2.55% gains, up 332 points to 13,403. Further, the S&P 500 Index also followed the suit by adding 59.62 points, or 2.55%, to 3,773.86.
Mixed US activity numbers for January failed to disappoint buyers cheering downbeat European economics increasing odds of further stimulus. Also keeping the mood positive were talks surrounding US President Joe Biden’s $1.9 trillion aid package as markets seem confident that Republicans may finally agree to the much-awaited stimulus despite recent offers of nearly $600 billion of relief.
Major attention, though, was given to the mining stocks as a jump in silver prices and physical demand drove market players to pile their coin inventories amid social media platform chatters. “The iShares Silver Trust ETF - the largest silver-backed ETF - jumped 7.1%. Data showed its holdings rose by a record 37 million shares from Thursday to Friday alone, each representing an ounce of silver,” said Reuters.
It’s worth mentioning that the comparative vaccine advantage of the US, versus the rest of the Western world, offered extra fuel to the run-up.
Amid these plays, Federal Reserve policymakers, namely Boston Fed Bank President Eric Rosengren and Atlanta Fed President Raphael Bostic reiterated the need for further stimulus amid economic uncertainty. Additionally, Fed’s Bostic turned down the odds that Gamestop, retail trading volatility needing the monetary policy address.
Looking forward, US stimulus chatters and market frenzy will be in focus ahead of Friday’s key NFP. Meanwhile, the coronavirus (COVID-19) and vaccine news can also entertain the traders.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD posts gain, yet dive below 0.6500 amid Aussie CPI, ahead of US GDP
The Aussie Dollar finished Wednesday’s session with decent gains of 0.15% against the US Dollar, yet it retreated from weekly highs of 0.6529, which it hit after a hotter-than-expected inflation report. As the Asian session begins, the AUD/USD trades around 0.6495.
USD/JPY finds its highest bids since 1990, approaches 156.00
USD/JPY broke into its highest chart territory since June of 1990 on Wednesday, peaking near 155.40 for the first time in 34 years as the Japanese Yen continues to tumble across the broad FX market.
Gold stays firm amid higher US yields as traders await US GDP data
Gold recovers from recent losses, buoyed by market interest despite a stronger US Dollar and higher US Treasury yields. De-escalation of Middle East tensions contributed to increased market stability, denting the appetite for Gold buying.
Ethereum suffers slight pullback, Hong Kong spot ETH ETFs to begin trading on April 30
Ethereum suffered a brief decline on Wednesday afternoon despite increased accumulation from whales. This follows Ethereum restaking protocol Renzo restaked ETH crashing from its 1:1 peg with ETH and increased activities surrounding spot Ethereum ETFs.
Dow Jones Industrial Average hesitates on Wednesday as markets wait for key US data
The DJIA stumbled on Wednesday, falling from recent highs near 38,550.00 as investors ease off of Tuesday’s risk appetite. The index recovered as US data continues to vex financial markets that remain overwhelmingly focused on rate cuts from the US Fed.