{"id":125965,"date":"2021-05-21T22:18:04","date_gmt":"2021-05-21T22:18:04","guid":{"rendered":"https:\/\/precoinnews.com\/?p=125965"},"modified":"2021-05-21T22:18:04","modified_gmt":"2021-05-21T22:18:04","slug":"stocks-could-be-volatile-in-week-ahead-amid-turbulence-from-cryptocurrency","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/markets\/stocks-could-be-volatile-in-week-ahead-amid-turbulence-from-cryptocurrency\/","title":{"rendered":"Stocks could be volatile in week ahead amid turbulence from cryptocurrency"},"content":{"rendered":"
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The plunge in bitcoin helped sour the mood for all risk assets, though the tech sector eked out a small gain for the past week.<\/li>\n
The Fed's preferred inflation measure, the personal consumption expenditures price index, will be released Friday. That report could affect the market if the number is hot.<\/li>\n
Earnings season is slowing down, but there are still some important companies, like Costco and NVIDIA, releasing reports.<\/li>\n<\/ul>\n
The trading pattern of the past two weeks \u2013 particularly alongside cryptocurrency's movements \u2013 suggests stocks could continue to be volatile in the week ahead.<\/p>\n
Investors are watching the wild swings in bitcoin and trying to gauge whether technology shares can gain traction after a rally attempt in the past week.<\/p>\n
The Dow and S&P 500 were lower in the past week, but Nasdaq was slightly higher, helped by a positive move in tech, as well as buying in biotech and big cap growth names like FANG members Alphabet, Facebook and Netflix.<\/p>\n
A steep plunge in bitcoin after China announced new regulations soured the mood for risk assets during the past week. The U.S. also called for stricter compliance with the IRS. Further, on Friday, China said it would crack down on bitcoin mining and trading.<\/p>\n
"What's interesting is the market is being bullied around by where bitcoin goes," said Peter Boockvar, chief investment officer with Bleakley Advisory Group. Bitcoin plunged by as much as 30% on Wednesday, to about $30,000. Though it recovered to above $42,000, it slid again on Friday. <\/p>\n
The cryptocurrency was down about 12% late Friday, hovering around $35,000, according to Coin Metrics.<\/p>\n
"Bitcoin is a poster child for risk appetite," said Boockvar. "It tells you the stock market is more on uneven ground, if we're getting dragged along by bitcoin."<\/p>\n