On Tuesday, Bitcoin surged to a new intraday high, crossing over $69,000 before retracing slightly in premarket trading. This milestone marked a significant achievement for the cryptocurrency market.
Meanwhile, the stock market experienced a downturn for the second consecutive day. The S&P 500 declined by 1%, and the Nasdaq Composite fell by 1.7%. Notably, six out of the Magnificent Seven stocks saw losses, with Nvidia being the sole exception.
Despite the recent selloffs, both the S&P 500 and Nasdaq Composite have posted gains of over 6% for the year. Additionally, nine out of the eleven S&P sectors have shown positive performance in 2022.
Some prominent stocks that faced losses on Tuesday include Tesla, Microsoft, Apple, and Meta. Tesla dropped nearly 4%, while Microsoft and Apple saw declines of 3% and just under 3%, respectively. Meta, the parent company of Facebook, experienced a 1.5% decrease following platform outages.
Bitcoin's rally was a standout feature of the day, with the cryptocurrency hitting a new all-time high. Gold also reached a record high, closing at $2,133.50.
Target made headlines with better-than-expected earnings and the launch of its Target Circle 360 program. This move, aimed at competing with retail giants like Amazon and Walmart, led to a 12% increase in Target's stock price.
Furthermore, CrowdStrike Holdings surged by 22% after reporting strong earnings, while Footlocker shares dropped by 10% in premarket trading due to a soft outlook.
The rally in gold and bonds has caught the attention of market observers, with the 10-year bond yield falling to 4.136% on Tuesday. This shift in investment patterns towards safer assets could signal caution in the equity markets.
Looking ahead, upcoming events such as the JOLTs report, Jerome Powell's Congressional testimony, and the February jobs report could impact market volatility as measured by the VIX. Monitoring signals from bonds, gold, and the VIX will be crucial in assessing the sustainability of the equity rally.
Investors are advised to stay focused on their long-term investment goals and strategies amidst the evolving market conditions.
