Bitcoin Surges Above $97,000 as Wall Street Hits New Highs: What’s Fueling the Market Rally?

Risk-on sentiment surged on Wall Street following the Thanksgiving holiday, driven by investor optimism regarding fourth-quarter profit forecasts for U.S. corporations. This momentum lifted both the S&P 500 and Dow Jones to fresh record highs.

Market Highlights

• The S&P 500 broke past the 6,040-point mark, closing at 6,032, marking a 27% year-to-date gain. If the year ended on this day, the broader U.S. stock market would have seen a staggering 57% surge over the last two years, the strongest rally since 1998.
• The Dow Jones also reached a record high, exceeding the 45,000 level, with a 19% year-to-date gain.
• Technology stocks led the charge, with the Nasdaq 100 rising 1%, bolstered by gains in the Magnificent Seven mega caps and semiconductor stocks.
• Small caps showed modest gains, with the Russell 2000 index edging up 0.4%.

Currency and Bond Markets

In the currency market, the U.S. dollar ended its eight-week winning streak, particularly dropping against the Japanese yen amid speculation of a potential Bank of Japan interest rate hike. Bond markets saw Treasury yields drop by about 5 basis points, with the 10-year yield nearing 4.2%, a level not seen since late October. The iShares 20+ Year Treasury Bond ETF (TLT) rallied 1%, reaching over one-month highs.

Commodities Performance

Commodities also experienced positive price movements:

• Gold rose 0.8%, marking its fourth consecutive session of gains.
• Silver jumped 1.4%.
• Natural gas prices spiked 4.9%, concluding the month with a 24% surge.
• Crude oil was the only underperformer, easing 0.2%.

Bitcoin's Resilience

In the world of cryptocurrencies, Bitcoin (BTC/USD) rebounded 1.6%, climbing above $97,000, showcasing its resilience amidst the overall market enthusiasm.

Friday's Performance in Major US Indices, ETFs

| Major Indices | Price | Change (%) |
|---------------------|--------|------------|
| Nasdaq 100 | 20,930 | +0.9% |
| S&P 500 | 6,032 | +0.6% |
| Dow Jones | 44,910 | +0.4% |
| Russell 2000 | 2,434 | +0.3% |

Notable Stock Movements

• Apple Inc. (AAPL) rose 1.1% to $273.62, hitting a fresh record high.
• U.S.-listed shares of Brazilian companies fell sharply due to disappointing fiscal reforms, with Nu Holdings Ltd. (NU), StoneCo Ltd. (STNE), and XP Inc. (XP) dropping 7.2%, 9.1%, and 9.2%, respectively.
• Tesla Inc. (TSLA) surged 4% after Wedbush projected significant AI and self-driving opportunities for the company, potentially raising its valuation to $1.5-$2 trillion.