Monday, 25 September 2023 05:16 GMT

US Stocks Recover with Modest Gains Despite Initial Decline

(MENAFN) On Tuesday, the US stock market experienced a bounce back, closing the day with slight gains even though it initially opened in the red. The Dow Jones Industrial Average managed to rise by 10 points or 0.03 percent, concluding the session at 33,573. It is worth noting that the blue-chip index had dipped to as low as 33,399 points during the trading day.

Similarly, the S&P 500 exhibited a positive trend, adding 10 points or 0.24 percent, ultimately closing at 4,283. However, it fell short of its 52-week high of 4,325 by 42 points. The tech-heavy Nasdaq also experienced a rise, gaining nearly 47 points or 0.36 percent, ending the session at 13,276. This increase was largely influenced by the notable performance of e-commerce company Etsy, which saw a significant jump of 5.6 percent.

Conversely, Coinbase, a prominent cryptocurrency trading platform, faced a significant setback as its stock price plummeted by 12.1 percent. The decline was triggered by charges brought against the company for violating US exchange and securities laws. The US Securities and Exchange Commission took action against Coinbase, as well as Binance, another cryptocurrency exchange, on Monday.

Despite these regulatory challenges faced by Coinbase and Binance, the overall cryptocurrency market showed signs of recovery, reclaiming some of the substantial losses from the previous trading session. Bitcoin, the most well-known cryptocurrency, saw a price increase of 5.9 percent, reaching USD27,160 at 4.18 p.m. EDT. Additionally, the total value of the cryptocurrency market surged by 4.5 percent to USD1.14 trillion, according to data from CoinMarketCap, a digital asset price-tracking website.

Furthermore, the VIX volatility index, often referred to as the fear index, experienced a notable decline of 5.2 percent to 13.96. This reduction indicates a decrease in market uncertainty and investor anxiety. Simultaneously, the 10-year US Treasury yield decreased by 0.28 percent, settling at 3.682 percent.

Overall, despite opening on a negative note, the US stock market managed to rebound and close the day with slight gains. The recovery was supported by positive movements in the tech sector, although notable regulatory actions against Coinbase had a negative impact on the cryptocurrency market.


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