Stocks rise for a fifth day and Bitcoin is approaching a record high.
US stocks rose on Tuesday, with the S&P 500 gaining 0.7%. The benchmark marked its fifth consecutive day of gains and is up more than 5% from its October 4 low after falling in September.
The gains mean the S&P 500 is once again approaching record territory, now within 0.4% of the closing high it reached in early September.
Cryptocurrency prices rose, with Bitcoin reaching $ 64,300, according to CoinDesk. On Tuesday, ProShares offered a long-awaited exchange-traded fund on the New York Stock Exchange linked to Bitcoin futures, and Bitcoin is trading at prices not seen since April, when it briefly traded above $ 64,800.
Tuesday’s gains came as several earnings reports from leading companies were stronger than expected.
Johnson & Johnson said sales rose 10.7% to over $ 23 billion in the third quarter compared to the same period last year. Shares of the pharmaceutical maker rose 2.4%.
Procter & Gamble stock fell about 1.2 percent after the company reported experiencing higher freight and freight costs in the three months ending in September.
Equity investors rejected comments from a Federal Reserve official, who signaled that if inflation remains high, the central bank may need to do more than just slow down its monthly bond purchases, which it says. is already preparing to do.
“If monthly impressions of inflation continue to be high through the end of the year, a more aggressive policy response than a simple cut may well be warranted in 2022,” said Christopher Waller, governor of the Federal Reserve, in a speech Tuesday.
His comment suggested that there might be pressure on the central bank to raise the policy interest rate, the Fed’s most powerful and traditional tool, sooner than many anticipated.
Mr Waller feared that rapid price gains could last.
âHe hasn’t been raised for a month or two – he’s been raised all year round. It is important to recognize this, âhe said. “I am still very concerned about the upside risk that high inflation will not turn out to be temporary.”
Oil prices rose Tuesday, with West Texas Intermediate, the US benchmark, gaining up to 1.5% before settling at $ 82.96 per barrel. Oil futures are at seven-year highs and are up 70% this year amid a global energy crisis that is pushing up the prices of other commodities.
Jeanne Smialek contributed reports.