2020 is Wild, But Who’s the Winner of this Insanity? Hint, It’s Not Bitcoin
The US stock market rallied to start the week despite an increase in coronavirus cases in dozens of states that has some experts worried that it might force officials to delay reopening plans across the country.
Coronavirus cases in the US have exceeded 3 million, and the death toll topped 132,993. “This is potentially setting the U.S. on a very different activity restart path than most Western countries and much of Asia,” warned Mike Pyle, global chief investment strategist.
Kristina Hooper, Invesco’s chief global market strategist, meanwhile says, “more fiscal stimulus is clearly needed as so much of the stimulus already enacted is very temporary in nature.”
Already, the tech-heavy Nasdaq Composite has risen to an all-time high after recording 2.2% gains on Monday, the best one-day gain since mid-May.
2020 is wild. https://t.co/lHkq2Gsexh
— Pomp 🌪 (@APompliano) July 6, 2020
The Dow also finished 1.8% higher, and S&P 500 climbed 1.6% to have its longest winning streak since December at five days in a row.
These gains were propelled by the Chinese market who had its best day in five years after Chinese state media advertised about the rising stock market.
Giving Crypto a run for its money
Shares of all the major technology stocks; Amazon, Netflix, Apple, Microsoft, Facebook, and Tesla, all led the market higher.
Amazon climbed above $3,000 a share for the first time has its valuation reaching $1.5 trillion.
Microsoft, all time high. Apple, all time high. Covid-19 in the United States, all time high.
— The Wolf Of All Streets (@scottmelker) July 6, 2020
The largest US company by market capitalization at $1.57 trillion, Apple rallied 24% YTD and jumped to an ATH yesterday and is edging out Microsoft. The company increased its iPhone manufacturing plans for the quarters ending September and December by 1 million to 2 million devices each.
The company also raised its iPhone orders for the March 2021 quarter by 5 to 10 million units.
The combined market cap of Apple and Microsoft is now 54% greater than the ENTIRE Russell 2000.
— Bespoke (@bespokeinvest) July 6, 2020
What’s giving crypto a run for the money is Tesla, yet again. Back in October, Tesla Inc’s market value surpassed General Motors and has now added the combined value of GM, Ford Motor Co., and Fiat Chrysler.
“There is definitely a significant retail component that is driving shares higher,” said Wedbush Securities analyst Daniel Ives, referring to individual investors trading on platforms such as Robinhood.
— TraderArjun (@arjunkkohli) July 6, 2020
Even gold had its fifth positive session in six and is currently at $1,793, unlike Bitcoin, which is sitting idle under $9,300. But the crypto market did see some winners.
On Monday’s frenzy, it was Chainlink, whose oracle is dominating DeFi data feeds, which made a new all-time high at $5.38.
$LINK PF remains strong
2nd best example of a PF ive seen in crypto during my short trading career pic.twitter.com/uXKZOnm96z
— Josh Olszewicz (@CarpeNoctom) July 6, 2020
This new peak was accompanied by an all-time high in daily active addresses at 8,310 as well just a few days back.