NASDAQ hits all time high; S&P 500 near life highs while Bitcoin turn positive after massive price drop!

In midst of the chaos that is taking place in the crypto currency world NASDAQ just managed to hit an all-time high for itself. The S&P 500 is precariously poised to make its record highs as is trades just half a percent below its life highs.

The global markets are trading with slight gains even as the equity markets become extremely sensitive to hear what the US Fed Chairman Powell has to say. In midst of the chaos that is taking place in the crypto currency world NASDAQ just managed to hit an all-time high for itself. The S&P 500 is precariously poised to make its record highs as is trades just half a percent below its life highs.

What is interesting to note is that NASDAQ made life highs without any help from Alphabet on Tuesday as the stock trades slightly lower after a probe has been initiated against Google’s advertising unit.  

NASDAQ Composite is a tech-heavy index and has been a world beating index in 2020. In 2021 so far NASDAQ has underperformed S&P 500 and even blue-chip index Dow Jones Industrial Average (DJIA). NASDAQ is up by 10.29 per cent on YTD basis while the tech-heavy index is up by 40.30 per cent in one year. DJIA gained 10.73 per cent on YTD basis while the blue-chip index has been up by 29.58 per cent in one year. S&P 500 index in the meantime has soared by 12.86 per cent in 2021 and is up by 35.38 per cent in one year. Benefiting from a universal rally in small caps worldwide, we can see that Small cap 2000 index has gained 15.24 per cent in 2021 and is up by 58.11 per cent in one year.

Investors are on the edge as there is an increasing awareness that the stocks have gone relatively long period without any major market correction. The tentativeness amongst the investors at all-time high market levels clubbed with US Fed comments suggesting that the inflation levels have risen faster than earlier estimates –is putting lot of pressure on both the long term investors and the short term traders, as the risk reward ratio becomes unacceptable for the majority of the market participants. One thing is for sure, which investors know- ‘Fed cannot increase the interest rates without making a lot of damage’. This awareness is taming the bulls for the moment in US markets.

The wild circus in crytocurrency continues as the triggers for the crash are made in China this time around. With the crash, Bitcoin erased all of its gains it built in 2021. However the Bitcoin managed to recover and is trading in green for the moment – at the time of filing this report, indicating support at the lower levels.

Liquidity is there, investors are simply waiting for the positive market triggers!