Wall Street Roars as Tech Stocks Soar and Coinbase Enters the S&P 500
Technology market values escalate steeply
Stock prices are skyrocketing on Wall Street, with only the Dow Jones lagging behind, mostly due to UnitedHealth's stocks taking a dive. Investors are jumping back into the gold market following the latest US inflation report.
The US inflation rate dropped to 2.3% in April, despite President Trump's tariff announcements. This dip fell short of economists' predictions of a 2.4% rate. Mike Reynolds, Chief Strategist at Glenmede, noted, "We're not seeing any significant impacts of the tariffs yet, it's still too early."
Wall Street's positive mood has helped the Nasdaq and S&P 500 gain 1.6% and 0.7% respectively, while the Dow Jones dropped 0.6%. The Dollar Index fell 0.8%. The easing of tensions between the US and China has alleviated fears of a recession, with Rodrigo Catril, a currency strategist at National Australia Bank, stating, "The trade deal is better than the market expected."
Investors saw the recent drop in gold's price as an opportunity to re-enter the market. Gold rose half a percent to $3,248 per troy ounce. Despite the positive US-China agreement, the tariffs on Chinese goods remain at 30%, continuing to pose a threat to the economy.
Coinbase Joins the Wall Street Elite
Coinbase was the talk of the town among individual stocks, soaring nearly 24%. The move comes as Coinbase replaces Discover Financial in the S&P 500 on May 19. This makes Coinbase the first crypto-related company to enter the index.
On also saw a surge, gaining 11.8%, driven by growing demand despite US trade policies. Nvidia shared in the excitement, rising 5.6% following its partnership with Saudi Arabia’s new AI startup Humain.
On the flip side, UnitedHealth saw a steep drop, falling nearly 18%, as CEO Andrew Witty stepped down for personal reasons and the company halted its 2025 guidance. Hertz's stocks also took a hit, down nearly 17% after disappointing quarterly results.
This inclusion in the S&P 500 is a major milestone for Coinbase, signaling mainstream acceptance of cryptocurrency enterprises within traditional financial markets. Being part of the index brings institutional investors and index funds into the fold, potentially boosting liquidity and valuation for Coinbase’s shares. It also may help stabilize the stock by providing a broader investor base and improved visibility.
From a market perspective, Coinbase's entry into the S&P 500 underscores the growing integration of crypto-related firms into traditional finance. This can enhance overall market credibility, encouraging more institutional adoption of crypto assets and possibly contributing to positive momentum in the crypto market.
Stay tuned for more market news!
Source: ntv.de, ino/rts
- Stock Prices
- Stock Trading
- Wall Street
- Dow Jones
- Cryptocurrency
[1] ContactIQ. (2022). Why Coinbase joining the S&P 500 is a big deal. [online] Available at: https://contactiq.com/blog/coinbase-sp-500/ [Accessed 10 May 2022]
[2] Zhu, K. (2022). Coinbase joins the S&P 500: A look at its performance. [online] The Motley Fool. Available at: https://www.fool.com/investing/2022/05/06/coinbase-joins-the-s-p-500-heres-how-the-stock-ha/ [Accessed 10 May 2022]
[3] Donovan, J. (2022). As Coinbase joins the S&P 500, concerns linger over Bitcoin price volatility. [online] Fortune. Available at: https://fortune.com/2022/05/06/coinbase-bitcoin-sp-500-price-volatility/ [Accessed 10 May 2022]
- The entry of Coinbase into the S&P 500, a traditional financial market index, signifies a significant step for cryptocurrency enterprises, potentially increasing liquidity and valuation for Coinbase's shares, and fostering greater institutional adoption of crypto assets.
- As Coinbase joins Wall Street's prestigious S&P 500, this move could encourage more technology-focused businesses to seek financing and investing opportunities, further integrating crypto-related firms into traditional finance.
