Bitcoin tops $103K/ Wall Street market update/ crypto stocks rally/ airline stock gains/ Fed rate cuts/ S&P 500 record highs/ global market trends/ NEW YORK/ Newslooks/ J. Mansour/ Morning Edition/ U.S. stocks remained steady Thursday, with major indexes near record highs ahead of Friday’s jobs report. Bitcoin surged above $103,000, sparking gains in crypto-linked stocks. Airline shares climbed on stronger forecasts, while concerns linger over consumer resilience and global events.
Market Snapshot: Quick Looks
- Wall Street Steady: S&P 500 unchanged, Nasdaq up 0.2%, Dow down 0.2%.
- Bitcoin Milestone: Bitcoin surpasses $103,000, boosting crypto-related stocks.
- Airline Gains: American Airlines up 10.4%, Southwest rises 4% on strong forecasts.
- Consumer Worries: American Eagle Outfitters falls 14.1% amid spending concerns.
- Global Events: European markets calm; South Korea’s Kospi down 0.9%.
Wall Street Holds Records as Crypto Surge Boosts Stocks
Deep Look
U.S. stock markets hovered near record highs on Thursday as investors awaited key economic data. The S&P 500 remained flat after setting its 56th all-time high this year, while the Dow Jones Industrial Average dipped 0.2%. The Nasdaq composite edged up 0.2%, marking its own record.
Bitcoin’s Historic Surge
The standout mover was Bitcoin, which broke past $103,000 for the first time late Wednesday. The rally was fueled by President-elect Donald Trump’s nomination of cryptocurrency advocate Paul Atkins as SEC chair, a signal of potential regulatory easing for digital assets.
Airline Stocks Take Off
Airlines led gains on Wall Street, driven by improved financial forecasts:
- American Airlines soared 10.4% after projecting higher-than-expected revenue and profits for Q4, boosted by a lucrative partnership with Citi for co-branded credit cards.
- Southwest Airlines rose 4% after reporting stronger-than-expected holiday travel demand and raising its revenue forecast.
Sector Weakness
Tech and retail stocks saw mixed performance:
- Synopsys, a semiconductor supplier, fell 8.1% despite reporting solid quarterly profits. Investors were concerned by its cautious revenue forecast amid “macro uncertainties.”
- American Eagle Outfitters tumbled 14.1%, warning of “potential choppiness” outside peak shopping periods. This follows similar concerns raised by Foot Locker earlier in the week, adding to worries about consumer spending.
Consumer Spending and Economic Outlook
The resilience of U.S. shoppers has been a cornerstone of economic stability, helping the country avoid recession despite aggressive Federal Reserve rate hikes to combat inflation. However, consumer spending faces headwinds from high prices and a cooling job market.
Weekly unemployment claims rose to 224,000, indicating slight softening, but levels remain historically low. The focus now shifts to Friday’s U.S. jobs report, which will show how hiring and employment trends evolved in November.
Fed Policy and Trump’s Impact
The Federal Reserve is widely expected to cut its main interest rate again in December, following recent signs of easing inflation. However, Trump’s election has introduced new uncertainty. Policies favoring tariffs and other trade restrictions could fuel inflation, potentially forcing the Fed to reconsider its rate-cutting trajectory.
Global Markets and Developments
- Europe: Markets remained steady, with France’s CAC 40 index rising 0.1%. Prime Minister Michel Barnier’s government resigned after a no-confidence vote triggered by budget disputes.
- Asia: South Korea’s Kospi dropped 0.9%, deepening losses after political turmoil surrounding President Yoon Suk Yeol’s brief declaration of martial law earlier this week.
- Oil Prices: Crude prices edged up after OPEC+ delayed plans to increase production.
