Dow Futures Dip as SEC Denies Approval for Spot Bitcoin ETFs, Stocks Hold on After Monday’s Gains
The Dow Jones futures, along with S&P 500 futures and Nasdaq futures, nudged lower after hours, following the announcement by the SEC that it has not yet approved spot Bitcoin ETFs. The SEC stated that its X social network account was compromised, leading to the false declaration that bitcoin ETFs had been approved. This news comes ahead of the SEC’s deadline for action on Wednesday.
Meanwhile, the stock market rally remained mixed but largely held onto Monday’s strong gains. The Nasdaq saw a slight reversal, driven by the leadership of Nvidia, which is reasserting its position in the market.
In other news, Intuitive Surgical reported preliminary Q4 revenue of $1.93 billion, a 17% increase compared to the consensus forecast. The company credited this growth to strong demand for procedures utilizing its da Vinci robotic surgical systems. As a result, Intuitive Surgical’s stock jumped in after-hours trading.
Taiwan Semiconductor is set to report December and fourth-quarter sales early Wednesday. The chip foundry, which supplies chips to Apple, Nvidia, and other major companies, saw its stock fall slightly on Tuesday. The shares are currently working on a handle buy point of 105.52.
As for the futures market, Dow Jones futures fell by 0.1% compared to fair value, while S&P 500 futures and Nasdaq 100 futures also edged lower.
It’s important to note that overnight action in the futures market does not necessarily indicate the direction of actual trading in the upcoming regular stock market session.
While the SEC’s announcement regarding spot Bitcoin ETFs weighed on investor sentiment, it is still anticipated that the SEC will eventually approve these ETFs. If approved, spot Bitcoin ETFs are expected to attract significant institutional support.
Following the false announcement of Bitcoin ETF approval, the price of bitcoin fell by 3.25% to $45,558.86, after reaching its highest levels since March 2021. However, bitcoin quickly rebounded above $46,000 Tuesday evening.
The impact of the SEC announcement was also felt in the cryptocurrency market, with Coinbase and Marathon Digital stocks falling slightly in after-hours trading.
Overall, the stock market rally remained mixed, with a slight downside bias. However, many stocks held onto their gains from Monday.
The Dow Jones Industrial Average fell by 0.4% during Tuesday’s trading session, while the S&P 500 index dipped by 0.15%. The Nasdaq composite managed to edge up by 0.1% after briefly testing the 21-day line.
In terms of individual stocks, Nvidia continued to climb, gaining 1.7% and bringing its total increase for the week to 8.2%. Tesla, on the other hand, saw a decline of 2.3%, falling below the 50-day moving average but remaining above the 200-day line.
Oil prices experienced a 2.1% increase, reaching $72.24 per barrel. The 10-year Treasury yield also edged higher, reaching 4.02%.
Among growth ETFs, the iShares Expanded Tech-Software Sector ETF advanced by 0.4%, bolstered by the performance of Palo Alto and DDOG stocks. The VanEck Vectors Semiconductor ETF climbed by 0.3%, with Nvidia as its top holding.
Several other sector-specific ETFs experienced declines, including the SPDR S&P Metals & Mining ETF, the SPDR S&P Homebuilders ETF, the Energy Select SPDR ETF, the Health Care Select Sector SPDR Fund, the Industrial Select Sector SPDR Fund, and the Financial Select SPDR ETF.
Reflecting the performance of more speculative stocks, the ARK Innovation ETF fell by 1.55%, while the ARK Genomics ETF rose by 0.9%. Both ETFs consider COIN stock to be their top holding. Tesla also remains a significant component of Cathie Wood’s Ark.
In technology news, Google stock rose by 1.5% and moved back above a cup-with-handle buy point. PANW stock also saw a significant increase, rising by 3.8% and rebounding above the 21-day line. Similarly, DDOG stock climbed by 1.6% and exceeded its handle buy point. Uber stock gained 2.2%, moving back above the 21-day line after experiencing a pullback from the 10-week line. DoorDash stock jumped by 4.6%, breaking a downtrend and offering an early entry point.
Overall, the stock market remained relatively stable, with many leaders continuing to advance. Investors should consider adding exposure to take advantage of the buying opportunities presented by stocks like Nvidia as they break out.
