📊 Stocks worldwide hit new highs with best week in nearly a year
Global stocks just pulled off their best week since November, shrugging off fears of a looming recession in the United States.
Equity markets worldwide bounced back big time after a rough start to the month, driven by positive CPI numbers that signaled strong consumer spending and easing inflation.
Wall Street’s S&P 500 index snapped a four-week losing streak, climbing 3.9% over the week and capping it off with a 0.2% bump on Friday, the best run since November.
With this rally, the S&P 500 is now just 2% below its record high from a month ago. Japanese stocks, which took a heavy hit in early August, roared back with a 3% jump on Friday, pushing their weekly gain to 7.9%.
Europe’s Stoxx 600 index also joined the party, ticking up 0.3% on Friday to finish the week 2.4% higher. The MSCI World Index, which tracks developed markets, had its best week in nearly a year, driven by the global market upswing.
Investors in Europe are now looking ahead to the Federal Reserve’s Jackson Hole symposium, hoping to get more clues about the direction of interest rates.
🔸 What #Bitcoin got to do with it
Now, let’s talk about what this stock market rally means for Bitcoin and the broader crypto market. Whenever stocks rally like this, the crypto crowd starts paying attention.
Historically, a booming stock market often spills over into the crypto space, with investors looking to diversify their gains into digital assets. But it’s not always that simple—Bitcoin has a mind of its own.
During past bull markets, Bitcoin often followed the lead of equities, riding the wave of positive sentiment.
We saw this in 2021 when Bitcoin skyrocketed to over $64,000 as stocks also hit new highs.
But Bitcoin doesn’t just mirror the stock market; it dances to its own beat. Market sentiment, risk appetite, and liquidity all play a role in how Bitcoin reacts.
Right now, Bitcoin’s being pretty volatile. After peaking at around $73,000 in March, it’s been swinging between $60,000 and $70,000.
