Good Evening. U.S. equities saw little change on Thursday as investors awaited Friday’s release of the July jobs data and plowed through more earnings.
The Dow Jones fell 0.26% and the S&P 500 dipped by 0.08%. Tech stocks attempted to regain momentum after Wednesday’s rise, with the Nasdaq rising by 0.41%.
CRYPTO MAKES A COMEBACK
Following its statement that it was collaborating with BlackRock Inc. to assist institutional investors to manage and trade Bitcoin, the largest US cryptocurrency exchange (CoinBase, COIN) saw a 10% increase in share price on Thursday after previously rising as much as 44%. It gained for the third day in a row during the rally, which prepared it for a record weekly increase.
The increase on Thursday is noteworthy in that it occurred on a day when the prices of Bitcoin, Ether, and other well-known digital assets were all down. Since it started trading last year, the stock has largely maintained a close correlation to the biggest cryptocurrency in the world. The development serves as a much-needed reminder to Coinbase’s investors that it will continue to be a titan in the cryptocurrency industry.
However, this year, shares have lost more than 64% of their value. This is due to the fact that the company has encountered a number of challenges recently as a result of a decline in trading volumes and a fall in the price of Bitcoin and other digital tokens. The US Securities and Exchange Commission is also looking into whether it unfairly permits US customers to trade assets that ought to be registered as securities.
GAS PRICES KEEP FALLING
According to AAA, the national average gas price has now decreased for 50 days in a row, reaching $4.16 a gallon on Wednesday. It has decreased by 17%, from the record high of $5.02 set on June 14. According to a tweet from Vice President Biden, more than half of US gas stations provide petrol for less than $4 per gallon.
The economist’s maxim, “The best treatment for high prices is high prices,” seems to be appropriate in explaining the decline. Drivers claim they have reduced their driving levels as a result of the early summer gas price spike, which has decreased demand for fuel.
- According to a late July AAA survey, almost two-thirds of US adults had changed their driving behaviors since March.
- 88% of respondents who claimed they had changed reported reducing their driving.
In addition, decreasing gas prices also reflect the worldwide economic crisis. Gas costs have decreased as backsliding nations use less fuel, which has brought down oil prices, a big factor in those prices.
Looking forward… As the peak travel season of the summer comes to an end, analysts believe that gas prices may continue to decline. The chief of petroleum analysis at GasBuddy told the WSJ that the national average will “noticeably” drop below $4 a gallon in the fall, barring any further supply problems.