Stocks Slump as Bitcoin Approaches $68K; Gold Closes at Record
Stock markets faced a slump on Monday as Bitcoin neared the $68,000 mark and gold prices reached a record high. The S&P 500 saw a rise of 5.6% in gold miner Newmont Corp. (NEM) due to the surge in gold futures. Meanwhile, Apple shares dipped by about 3.2% at $173.84 in Monday afternoon trading.
The proposed $3.8 billion merger between JetBlue (JBLU) and Spirit Airlines (SAVE) was called off after regulators blocked the deal. As a result, Spirit Airlines saw a 15% decline in stock prices on Monday morning, while JetBlue’s shares were trading almost 4% higher. Since the merger was initially announced, Spirit Airlines shares have lost over 70% of their value.
Semiconductor stocks, including Dow Intel (INTC), experienced a significant boost on Monday, with a 4.1% gain. However, Apple (AAPL) faced a 2.5% decline after being fined 1.8 billion euros ($2 billion) by EU regulators for its practices related to the App Store.
Gold miner Newmont Corp. (NEM) in the S&P 500 saw a rise of 5.6% as gold futures reached a record high. Ford (F) also saw a gain of 2.2% after reporting a 10.5% increase in U.S. vehicle sales for February. On the other hand, American Airlines (AAL) experienced a 5.4% fall in stock prices following its order of 260 planes from Boeing, Airbus, and Embraer.
Leading the semiconductor rally in the Nasdaq 100, Nvidia (NVDA) witnessed a 3.6% surge, building upon its 4% increase from Friday. However, Tesla (TSLA) suffered a 7.2% decline after preliminary data indicated a decrease in car shipments from its Shanghai factory in February, the lowest since December 2022.
Tesla Inc. (TSLA) shares slumped on Monday as sales data revealed that deliveries from its Shanghai Gigafactory hit a year-low due to increased competition in the domestic market. The automaker delivered 60,365 vehicles from its China factory in February. As a result, Tesla shares were down 6.7% at $189.06 by late Monday afternoon, with a 24% decrease year-to-date.
Sea Limited (SE) experienced gains on Monday following the announcement of better-than-expected results from its e-commerce and digital financial services units. The Singapore-based company reported a fourth-quarter loss of $0.19, with revenue seeing a 4.8% increase to $3.62 billion. It also achieved its first annual profit, amounting to $162.7 million since its IPO in 2017.
The European Union (EU) imposed a fine of around $2 billion (1.8 billion euros) on Apple (AAPL) for its “abusive App store rules for music streaming providers.” The iPhone maker claims this move could benefit Spotify (SPOT). Apple shares saw a decline of approximately 3.2% at $173.84 on Monday afternoon.
Bank of America has displayed optimism for the S&P 500, increasing its year-end target for the index to 5,400 from 5,000. This implies a 5% upside from Friday’s closing price, making BofA one of the most bullish major international firms on Wall Street.
Macy’s (M) shares surged by 16% in early trading on Monday. This came after the investor group, whose previous offer for the department-store chain was rejected, raised its bid by nearly $1 billion.
Analyst comment
Positive news:
– Gold miner Newmont Corp. (NEM) saw a rise of 5.6% as gold futures reached a record high.
– Ford (F) reported a 10.5% increase in U.S. vehicle sales for February, leading to a gain of 2.2% in its stock price.
– JetBlue (JBLU) saw its shares trading almost 4% higher after the proposed merger with Spirit Airlines (SAVE) was called off.
– Semiconductor stocks, including Dow Intel (INTC), experienced a significant boost on Monday, with a 4.1% gain.
Neutral news:
– Stocks slumped as Bitcoin approached $68,000 and gold prices reached a record high.
Negative news:
– Apple (AAPL) faced a 2.5% decline after being fined 1.8 billion euros ($2 billion) by EU regulators for its practices related to the App Store.
– Spirit Airlines (SAVE) saw a 15% decline in stock prices after the merger with JetBlue was blocked by regulators.
– American Airlines (AAL) experienced a 5.4% fall in stock prices following its order of 260 planes.
Market prediction:
The market may experience volatility due to the impact of Bitcoin and gold prices, fines on Apple, and the cancellation of the JetBlue-Spirit Airlines merger. However, positive performances from gold miners and Ford, as well as gains in semiconductor stocks, may offset some of the negative effects. Overall, the market is likely to remain uncertain and influenced by various factors.