Big Tech Lifts Wall Street
- Despite ongoing concerns regarding a second coronavirus wave, Wall Street was seen higher throughout last week, including several all-time highs by the NSDQ100.
- Big tech continues to be the driving force behind the recent bullish rally, as Amazon, Apple and Microsoft all reached new highs last week.
- The fact that Wall Street is able to shake coronavirus fears has to do with several factors: The ongoing improvement in unemployment rates in the US, other positive data, such as Services and Manufacturing PMIs, the Fed’s apparent willingness to do whatever it takes to keep markets afloat and optimism surrounding possible treatments or vaccines for the virus.
Oil Remains Stable Around $40
- From being one of the most volatile assets on the market, oil seemed to have reached a calm last week.
- Since hitting the $40 mark on July 2nd, oil prices were relatively stable, until falling on Thursday and Friday due to demand concerns.
- However, forecasts of a quicker-then-expected global recovery on Friday pushed oil prices higher and back above $40 to end last week.
Will Gold Reach an All-Time High?
- Gold prices reached an 8-year high this week, climbing above $1,800 for the first time since 2011.
- The recent gains are attributed to a weak USD, the Fed’s promise to keep interest rates low, and investors relying on safe-haven assets as hedging against a coronavirus drawdown.
- If the current trend continues, gold’s all-time high of $1,900 may be within reach. However, there are still many factors that could impact prices.
Cardano (ADA) Leaps on Infrastructure Upgrade
- Last week, Cardano successfully deployed its biggest update yet, the Shelley code, which will make the blockchain network more decentralized.
- This had a very positive impact on the cryptocurrency’s price, as throughout last week, the ADA token jumped more than 25%.
- YTD, Cardano is up around 250%.
Lemonade’s Blockbuster IPO
- The insurtech company was planning on raising $100 million in its initial offering, but ended up raising triple that amount.
- Backed by Softbank, Sequoia Capital, GV and Aleph, Lemonade doubled its market capitalization since July 2nd.
The Week Ahead
- Big banks to kick off earnings season: According to Refinitiv, Stoxx600 companies in Europe are expected to report an average loss of 54%, and companies in the US are expected to register an average decline of 44%.
- European Central Bank to announce earnings and perhaps more Covid-19 measures (Thursday).
Written by a team of experienced financial analysts at eToro.
This content is for information and educational purposes only and should not be considered investment advice or an investment recommendation. Past performance is not an indication of future results.