Stocks traded lower on Thursday. The Dow led the decline by losing 0.55% on the day. While the Nasdaq (QQQ) and S&P 500 (IVV) fell, the Russell 2000 (IWM) dropped by 1.17. Markets needed a break in the weeklong rally. Today, markets will focus on the U.S. jobs report.
Regardless of the job situation, the Federal Reserve already signaled its monetary policy direction. Fed Chair Powell said that the central bank could slow its pace of interest rate cuts.
Before tariffs and tax breaks in 2025, inflation was persistently high. When the Trump Administration introduces new tariffs, it will increase the price of goods.
Food stocks like Coca-Cola (KO), Pepsi (PEP), and Mondelez (MDLZ) are trading sharply lower. Their stock price peaked in September. Back then, investors thought that food inflation would moderate.
Bitcoin (BTC) spent most of Thursday’s trading at a historic milestone price of $101,000 - $103,000. By around 3:30 p.m., BTC prices fell. The widely held cryptocurrency is up by 45% in the last month and up by 124% YTD. BTC holders wisely sold some of their positions to book profits. Although unlikely, bitcoin prices could fall just as fast as it rose.
Watch out for Microstrategy (MSTR) and Coinbase (COIN) shares to fall. It needs BTC prices holding the $100,000 level.
