Stock and Crypto Markets Finish the Week Down Big
The U.S. equity market finished the week significantly lower, posting the worst weekly performance since last March.
While Friday provided some reprieve for investors, the DJIA ended the week down 4.2%, while the S&P 500 lost 4.1% and the Nasdaq dropped 3.7%.
The sell-off was primarily driven by a sudden rise in interest rates in the long-dated 10-year Treasury, in addition to concerns over the upcoming earnings growth as stimulus begins to run thin in an increasingly hawkish rate environment. Technology stocks were among the hardest hit during the week’s sell-off, with the Technology Select Sector SPDR ETF (XLK) falling as much as 5%.
The global sell-off this week wasn’t limited to equities, with other major asset classes feeling the pressure.
While many believed that cryptocurrencies might behave as a store of value, this week has proven that the asset class is not yet mature enough to function as protection in equity downturns.
Over the past week, the AltDex 100 Index (ALT100), a benchmark index for large-cap cryptocurrencies and tokens, dropped over 8.4% as Bitcoin (BTC) broke its pattern of relatively low volatility to fall quickly to $6,200 before settling around $6,310.
This upcoming week will be pivotal for global equities to see if bulls can continue the late-week momentum and push prices higher.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.