Although Goldman Sachs has just lowered the probability of a recession in the US over the next 12 months, the US stock market does not seem to have continued to strengthen as a result. Golden Finance reported that today, the three major US stock indices all opened lower. The Dow Jones Industrial Average dropped by 0.38%, the S&P 500 Index fell by 0.18%, and the Nasdaq Composite Index declined by 0.18%. The market as a whole showed a relatively weak trend.
Among them, the share price of GameStop dropped particularly significantly, falling by more than 16% rapidly after the opening. This sharp decline originated from its previously announced $1.75 billion convertible bond transaction. After the news of the transaction was announced, the market was worried that the company’s equity might be diluted as a result, investor confidence was undermined, and then a large amount of selling was triggered. Gamestop, once a representative of “retail investors’ favorite stocks”, has always been closely watched by the market for its sharp fluctuations in share price. This recent sharp drop in share price has once again raised investors’ concerns about high-risk speculative stocks.
Meanwhile, cryptocurrency concept stocks also suffered a general decline in the US stock market today. The share price of cryptocurrency trading platform giant Coinbase dropped by more than 1%, the declines of Strategy and Riot Blockchain both exceeded 2%, and the decline of Hut 8 was even more than 3%. Recently, the cryptocurrency market has been experiencing frequent fluctuations. The price of Bitcoin has been hovering at key levels, increasing market uncertainty. Coupled with the influence of macroeconomic environmental factors, investors’ risk appetite has declined, and their enthusiasm for investing in cryptocurrency-related stocks has also cooled down accordingly. In addition, the uncertainty of regulatory policies in the cryptocurrency industry has also made investors cautious about cryptocurrency concept stocks.
At present, although Goldman Sachs ‘expectations for the economic outlook of the United States have improved, the US stock market still faces many unstable factors. The sharp drop in Gamestop’s share price and the general decline of cryptocurrency-related stocks reflect that market sentiment remains rather fragile. Investors are becoming more cautious when facing major corporate decisions and dynamic changes in the industry. Subsequently, the market will continue to pay close attention to the release of US economic data, the performance of corporate financial reports, and changes at the policy level. All these factors will have a significant impact on the trend of the US stock market.
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