Stocks are serene so far after a big Dow rally yesterday. But gold, silver, and cryptocurrencies are all on the move higher. The dollar is up, too, while Treasuries are flat.
Bitcoin is probably the biggest story in markets, with the benchmark cryptocurrency getting ever closer to $100,000. It topped $99,000 in early trading, extending its year-to-date gains to 135%. Momentum buyers are piling in on optimism a second Trump Administration will be much more friendly to crypto.
One telling development: Securities and Exchange Commission (SEC) Chairman Gary Gensler just announced he’ll step down on the day Trump is inaugurated in January 2025. Gensler has taken a relatively tough regulatory approach to the industry.
Bitcoin, Gold (5-Day % Change)
Meanwhile, gold continues to regain lost ground – with the precious metal on track for its biggest weekly rally since October 2023. Ironically enough, the rebound comes as the US dollar continues to surge – with its current eight-week run the longest since September 2023.
A rising dollar has traditionally put downward pressure on gold. But worries about an escalating Russia-Ukraine conflict, plus a modest dip in interest rates, are drawing investors back into the market regardless. Gold is up just over 30% on the year.
Finally, in corporate news, Honeywell International Inc. (HON) is selling its personal protective equipment unit for $1.3 billion in cash. PPE was in huge demand during the pandemic, as you likely recall. Meanwhile, Reddit Inc. (RDDT) fell after large shareholder Advance Magazine Publishers Inc. said it would stake its 7.8 million RDDT shares to establish a $1.2 billion credit facility. That’s putting pressure on RDDT’s stock price because those shares could be dumped if AMP were to default.
