Dow ends higher, Nasdaq jumps 1.4% and Bitcoin rebounds

Shares ended significantly higher on Monday as investors focused on the strength of the US economic recovery and put aside concerns about the impact of higher inflation.

The Dow Jones Industrial Average rose 186 points, or 0.54%, to 34,394, the S&P 500 rose 0.99% and the tech-heavy Nasdaq rose 1.41%.

Microsoft shares ((MSFT) – Get the report, Alphabet ((TogetL) – Get the report and Facebook ((FB) – Get the report All gained more than 2% that day.

Stocks ended mixed Friday as Wall Street weighed signs of a surge in US economic activity against a decline in risky assets like Bitcoin. During the week, the Dow fell 0.5%, the S&P 500 fell 0.4% and the Nasdaq rose 0.3%.

The Dow and S&P 500 have declined for two straight weeks.

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Concerns about inflation have subsided, amid mounting price pressures as the recovering economy comes in, and fears that the Federal Reserve may withdraw its extraordinary support.

Central bank officials have repeatedly stated that they expect inflation to pick up temporarily.

Supply chain bottlenecks, labor shortages and rising wages have increased inflationary pressures and undermined some corporate profit margins. However, the Federal Reserve’s pledge to continue buying $ 120 billion worth of bonds every month to keep interest rates near zero until at least early 2022 has reassured investors.

“With the market pretty tightly bandaged for the past two months, stocks move into the last full week of the month trying to break a two-week stalemate in bull bears,” said Chris Larkin, chief executive officer for trading and investing Products at E. * Handel.

“”Last week’s Fed minutes appeared to have been shaken as the Fed continued its wait-and-see stance, adding to the wind under the wings of the tech sector. Interestingly, however, we have seen some discord among Fed officials – how the market will interpret this in the coming days remains to be seen, “he added.

Crackdown on commodity speculation in China over the weekend reduced profits for copper and iron ore. However, given the optimistic outlook for crude oil prices from bankers at Goldman Sachs, oil prices rose nearly 2%.

Bitcoin rose on Monday after another tumultuous weekend.

Bitcoin, the world’s largest cryptocurrency, rebounded 20.96% to $ 39,769, according to CoinDesk. It fell to nearly $ 32,200 on Sunday afternoon, down another 31% over the past seven days. In April, it hit an all-time high of $ 64,829, according to CoinDesk.

Cryptocurrencies have had a very volatile month and have evolved tweets and statements from Tesla ((TSLA) – Get the report CEO Elon Musk and later spoke about federal tax regulations and a Chinese crackdown on the use of digital currencies.

Over the weekend, Musk once again supported cryptocurrencies and replied to another Twitter user that the “real battle between fiat and crypto exists. All in all, I support the latter”.

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