30s Summary
The stock market is thriving due to Trump’s presidential win and further interest rate cuts, leading to high performance for tech stocks such as MicroStrategy. The latter’s shares are now trading on Nasdaq at a 52-week high of $271.26, a 486% rise over the year, largely attributed to its Bitcoin accumulation. MicroStrategy plans to amass $42 billion in Bitcoin by 2027. Bitcoin’s price also soared to a record high post-Trump’s election. Other Bitcoin-associated firms, CleanSpark and Coinbase, saw their stock surge by 35% and over 48% respectively. Market optimism is also due to the Federal Reserve’s sustained interest rate reductions.
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The stock market is having a super week, one of the best of the year in fact. This is all thanks to Trump winning the presidency and more slashes to interest rates. This has pumped up tech stocks like MicroStrategy, which is at its highest in 52 weeks.
At the moment, shares of MicroStrategy are trading on Nasdaq for $271.26. That’s almost 20% higher than where they were just five days ago. Over the past year, the company, known for its business analytics and mobility software, saw their shares rocket up 486%. This is mostly due to their strategy of stacking up on Bitcoin.
MicroStrategy, headed by Bitcoin fan Michael Saylor, currently has a portfolio with more than 250,000 Bitcoin. This amounts to over $19 billion with the current rates. MicroStrategy even announced plans to scoop up $42 billion worth of Bitcoin by 2027.
Speaking of Bitcoin, its price went skyrocketing to an all-time high after Trump’s election. It surged over 10%, trading at around $76,600 on November 8.
And it didn’t stop at MicroStrategy. Other companies with Bitcoin ties also had an amazing week. CleanSpark, a Bitcoin mining company, saw their shares jump 35%. At the same time, Coinbase, a crypto exchange and one of the top contributors to the US election, had their stock soar by over 48%.
Investors are feeling hopeful thanks to signs of a more positive economic climate under Trump’s second term. This optimism is also fueled by the Federal Reserve easing up further. Earlier in September 2024, the Fed trimmed interest rates by 0.5 percentage points which was their first cut in over four years. The Fed didn’t just stop there. On November 7, it slashed another 0.25 percent points, bringing the federal funds rate to 4.5-4.75%.
Such moves have sparked joy in the general market. The S&P 500 surged up 5% for the week while the Dow Jones also nudged up 4.8%. This shows that investors are feeling on top of the world.