Want to know what the talk of the investing market is this week? In today’s article, we will discuss what investors are discussing and what is at the forefront of trading right now.
The Crash and Major Rebound of Stocks and Major Market Indexes
On Monday, stocks and major market indexes fell. The root cause is thought to be investor fear regarding the spread of the Delta variant and its pending effect on the recovery of the global economy. The Dow Jones is crashed down 2.3%, the S&P 500 lost 1.9%, and the Nasdaq followed suit with a decline of 1.7%. Travel stocks and oil prices suffered the most from the decline. Tuesday, less risk-averse investors took advantage of the emotional hesitance of others – shooting stocks and major market indexes right back up. Their jump to gain low-valued stocks pushed the S&P to post its largest single-day gain since March and the other major indexes (the Dow Jones and the Nasdaq) to rebound. Wednesday, they continued with the upward swing (although posting gains less large than Tuesday’s recovery). The gains even pushed through into Thursday – with major indexes less than 1% short of hitting their all-time highs! What a turnaround! It just goes to show that rash, emotional trading does not pay off. Remember to always use analytical trading to make better decisions – just like our Ebook says! It is free to download if you are interested in learning more about How to Avoid Getting Burned in the Markets here.
Bitcoin
Bitcoin’s drop-off has investors discussing cryptocurrency again. The original source of cryptocurrency has lost close to 50% of its valuation since April. This steep drop has spooked many investors – raising concerns over the cryptocurrency’s ability to manage inflation. Investors worry that Bitcoin’s scarcity (a limit on its units) will not be enough to preserve its value. Like many other markets, cryptocurrency is largely swayed by investor emotions and trends – as well as the influence of big-name investors (such as Tesla and Space X’s Elon Musk). It will be interesting to see how the cryptocurrency fares over time.
Bonds
Bonds rose this Wednesday, encouraging investors to take another look. They currently sit around 1.279% – which is an increase from earlier this week but falls short of its March high of 1.749%. Like many other investing means, bond yields have experienced their fair share of ups and downs throughout 2020 and 2021.
Commodities
Both oil and lumber indicated a potential for change this week. Lumber dipped down to an even price after SKY HIGH rises throughout 2020 and 2021. Now, as forest fires rage throughout the west, lumber is thought to potentially be going back into some sort of shortage according to several lumber suppliers. As a result, lumber prices are ticking back up. On the other hand, oil prices were also rocked this week by fears over the delta variant’s potential the shake economic recovery. Oil’s price is a battle between concerns over COVID-19’s ability to make disaster and the idea that constrained supplies + booming demand= amazing profits. Investors seem to be betting on both depending on who you ask so stay tuned for more updates!
Interested in trading commodities or getting help with your investments? Visit our commodities trading strategy page to find out more about how our strategies can help. You can also speak with one of our client care specialists and ask to see an example of one of our client accounts to get a real taste of what commodities trading can offer.
Conclusion
That concludes what the talk of the investing market is this week! Thank you for tuning in. If you would like to explore our investment strategies, see an example of what we have to offer by viewing a client account statement, or speak with one of our client care specialists, give us a call at (800) 883-0524 or contact us via email or our contact form. Happy trading, everyone!