Major U.S. stock indices ended Monday in positive territory, while Bitcoin reclaimed the $85,000 level and is now up 7% over the past week.
Investor sentiment improved after President Donald Trump announced exemptions on smartphones, computers, and other components from his “reciprocal” tariffs.
Apple (AAPL) shares gained after analysts at KeyBanc Capital Markets upgraded the stock from Underweight to Sector Weight, citing optimism tied to the tariff exemption. The research firm noted that the worst-case tariff scenario is off the table – at least for now.
“We’ve taken some dry powder and put it to work last week,” said Robinhood’s Stephanie Guild on CNBC. “But we also haven’t fully removed it because we think diversification is important—not only away from the dollar, but also just being cautious and balancing between low-volatility stocks and growth stocks. There’s a put now—I think that’s been confirmed—and that’s actually really helpful.”
Meanwhile, the CBOE Volatility Index (VIX) fell more than six points on Monday, while U.S. Treasuries dipped lower, both signs typically seen as supportive for equities.
Bitcoin (BTC) traded above $85,000 several times during the day but failed to break higher. Still, the $84,000 level showed strong support. Notably, the broader crypto market remained resilient, with investors largely unfazed by Mantra (OM) collapsing 90% as its CEO blamed forced exchange liquidiations while some investors believe insider selling and fraud are to blame.
Read the full article here