← Go back Sep 09, 2023
Volatility has made a comeback on with U.S. stock markets facing major setbacks for the first time in 2023. Historically, September is the worst-performing month on Wall Street and this month has witnessed volatile trading in the first week. Market participants are concerned about how markets will perform this month. The ‘s Federal Open Market Committee (FOMC) meeting in September is the primary focus this month due to the absence of earnings results. Additionally, crude oil prices surged on September 5 after Saudi Arabia decided to extend its daily production cut till the end of 2023. This has heightened concerns among investors about inflation as higher crude oil prices will directly impact the transportation sector, subsequently raising the general price level. The yield on the benchmark 10-Year U.S. Treasury Note rose 2 basis points to 4.292% on August 6, while the yield on the short-term 2-Year U.S. Treasury Note jumped 10 basis points to 5.02%. This yield is loosely associated with interest rate movement. The yield on the long-term 30-Year U.S. Treasury Note climbed 14 basis points to 4.373%. The ICE U.S. dollar Index surged to a six-month high at 104.90. Higher risk-free market interest rates pose a threat to growth stocks such as technology, consumer discretionary, and cryptocurrencies. Consequently, the prices of cryptocurrencies like Bitcoin, Ethereum, Cardano, Dogecoin, and Litecoin remained rangebound. The Federal Reserve has warned that cryptocurrencies may face volatility in the near term as a further hike in interest rate is possible since the inflation rate is presently over double the central bank’s 2% target rate. Visa Inc. is modernizing cross-border money movement by expanding its stablecoin settlement capabilities to the high-performing Solana blockchain. Corp posted revenues of $13.51 billion for the quarter, outpacing estimates by 20.89%. Robinhood Markets Inc., which operates a financial services platform in the United States, allows users to invest in stocks, exchange-traded funds, options, gold, and cryptocurrencies. Coinbase Global Inc. offers financial infrastructure and technology for the crypto economy. Block Inc., an online digital and mobile payment platform for consumers and merchants, is one of the largest Bitcoin investors.
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