Stocks Rise as Regulators Decide on Bitcoin ETF
As the deadline for regulators to decide on a spot Bitcoin ETF approached, stocks experienced a boost. The Nasdaq Composite traded 0.4% higher, the S&P 500 rose 0.2%, and the Dow Jones Industrial Average added 0.1% on Wednesday morning. All eyes were on Bitcoin, which slipped after the Securities and Exchange Commission (SEC) refuted a tweet from its official account stating that it had approved a spot Bitcoin ETF. However, most experts on Wall Street remain optimistic that the approval will come later in the day as the deadline looms.
Intuitive Surgical Reports Strong Q4 Results
Intuitive Surgical, the maker of the da Vinci robotic surgical device, saw its stock jump after reporting strong preliminary Q4 results. The company announced that its revenue had risen by 17% to $1.93 billion, surpassing analysts’ forecasts. Additionally, full-year sales climbed by 14% to $7.12 billion, exceeding estimates. Intuitive Surgical attributed the increase in revenue to a 21% jump in da Vinci procedures in the latest quarter, primarily due to eased COVID-19 restrictions in China, leading to an increase in operations in the country.
Amazon’s Layoffs Impact Stock Performance
Amazon’s stock price rose more than 1% after the company announced layoffs in its streaming and studio businesses. The company plans to lay off hundreds of employees in these areas, including 35% of its Twitch live-streaming unit workforce. The decision was based on assessing the organization’s size and aligning it with the current scale of the business and conservative growth predictions. Amazon’s move to downsize its streaming and studio divisions follows similar actions taken by other streaming companies, such as Disney and Netflix, amid increased pressure to turn a profit.
Bitcoin and Coinbase React to ETF Decision
Bitcoin’s price slid to around $45,000 ahead of the Securities and Exchange Commission’s decision on a spot Bitcoin ETF. Despite a disputed tweet from the SEC’s official account claiming the approval of spot Bitcoin ETFs, the regulator clarified that the tweet was false. Bitcoin initially surged to nearly $48,000 but fell back to around $45,500. Nevertheless, market participants and prospective ETF issuers remain confident that the SEC’s decision will ultimately lead to the approval of a spot Bitcoin ETF. The stock price of Coinbase, the asset custodian for several proposed ETFs, dropped 4.5% in early trading but has experienced significant growth over the past year.
Stock Futures Show Little Change Before Market Open
Futures contracts connected to the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 exhibited minimal movement before the market opened on Wednesday. Dow Jones futures were relatively flat, while S&P 500 futures showed a slight increase of less than 0.1%. Nasdaq 100 futures inched up by approximately 0.1%. These marginal changes indicate a cautious sentiment among traders as they await further market developments and economic indicators.
Disclaimer: The above article is for informational purposes only and should not be construed as financial advice.
Analyst comment
1. Stocks Rise as Regulators Decide on Bitcoin ETF – Positive news. The market is expected to remain optimistic as experts believe that the approval of a spot Bitcoin ETF is imminent.
2. Intuitive Surgical Reports Strong Q4 Results – Positive news. The market will likely respond positively to the strong performance of Intuitive Surgical, with its stock expected to continue to rise.
3. Amazon’s Layoffs Impact Stock Performance – Neutral news. While Amazon’s stock price initially rose after the announcement, the impact of the layoffs on the market is unclear and may result in mixed reactions.
4. Bitcoin and Coinbase React to ETF Decision – Neutral news. Bitcoin’s price experienced fluctuations, but the market remains confident that the approval of a spot Bitcoin ETF will happen. Coinbase’s stock price may continue to be influenced by the decision.
5. Stock Futures Show Little Change Before Market Open – Neutral news. The minimal movement in futures contracts suggests a cautious sentiment among traders, indicating that further market developments and economic indicators are needed to determine the direction of the market.
