Dow ducks back below 45,000 as bitcoin enthusiasm fails to carry over to equities: Live updates
Traders works on the floor at the New York Stock Exchange on Dec. 2, 2024.
Brendan Mcdermid | Reuters
The Dow Jones Industrial Average pulled back below record closing level on Thursday as enthusiasm around bitcoin’s move above $100,000 failed to rally stock market bulls.
The blue-chip average dipped 170 points, or 0.4%. Meanwhile, the Nasdaq Composite and the S&P 500 traded slightly below the flatline.
Bitcoin traded more than 3% higher, breaking above $100,000 for the first time. The move briefly led crypto-related stocks such as MicroStrategy and Coinbase higher. However, these names had given up those advances by the early afternoon.
The three major averages saw solid gains in the previous session, posting record closes.
“The problem you have is that valuations are stretched across the board,” said Keeley Teton portfolio manager Brian Leonard in an interview with CNBC. “You’re sitting at records, but there’s not a lot of enthusiasm or euphoria. Historically, when the records happened, the valuations were more reasonable.”
Traders on Thursday looked ahead to key U.S. employment data on Friday. Economists polled by Dow Jones forecast the U.S. economy added 214,000 jobs in November.
This labor report could inform the Federal Reserve’s rate decision at its policy meeting later this month. On Wednesday, Fed Chair Jerome Powell said that the U.S. economy is strong enough for the Fed to move carefully on rate cuts.
“The labor market is better, and the downside risks appear to be less in the labor market,” he said. “Growth is definitely stronger than we thought, and inflation is coming [out] a little higher. So, the good news is that we can afford to be a little more cautious as we try to find neutral.”
