Dow Logs Triple-Digit Loss After Bitcoin Plunge, Fed Comments

Though the major indexes managed to cut some of their steeper intraday losses, bitcoin's major selloff still left stocks settling deep in the red on Wednesday. The Dow logged a 164-point drop, after falling 586 points at its session lows. Both the S&P 500 and tech-heavy Nasdaq rose slightly from their intraday lows as well, but ultimately registered losses. Bitcoin did see a slight bounce this afternoon and is now trading closer to the $40,000 mark, though the cryptocurrency's wild moves have cast a somber mood over Wall Street. 

In other news, Federal Reserve Chairman Jerome Powell said a notable pickup in economic recovery would be grounds for tightening monetary policies in the next few months, but that it's still "uneven and far from complete." Regardless, investors remain on high alert, as the possibility of an adjusted fiscal policy solidifies. 

The Dow Jones Average (DJI - 33,896.04) dropped 164.6 points or 0.5% for the day. Salesforce.com (CRM) led the Dow components with a 3.3% rise, while Chevron (CVX) paced the laggards, falling 2.8%.

Meanwhile, the S&P 500 Index (SPX - 4,115.68fell 12.2 points or 0.3% for the day. The Nasdaq Composite (IXIC - 13,299.74shaved 3.9 points, or 0.03% for the day.

Lastly, the Cboe Volatility Index (VIX - 22.18) added 0.8 points or 3.9% for the day.

indexesmay19

nysemay19

earningsmay19

uvolmay19

GOLD PRICES EXTEND WINNING STREAK AS BITCOIN PLUMMETS

Oil prices closed at their lowest level in over three weeks on Wednesday. Weighing down the commodity was new Energy Information Administration (EIA) data, which showed an increase in U.S. crude inventories. Plus, traders are concerned Russia may lift sanctions on Iran. In response, June-dated crude fell $2.13, or 3.3%, to settle at $63.36 per barrel.

Gold prices logged their fifth-straight win, on the other hand, as well as a fresh four-month high. The yellow metal got a boost as bitcoin and traditional stocks declined. As a result, June-dated gold rose $13.50 cents, or 0.7%, to settle at $1,881.30 an ounce.

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.