The US stock market, as a whole, rallied yesterday, thanks to strong reports on the US labor market. The better-than-expected figures helped ease concerns about rising price pressures.
But looking at the market more closely, it is evident that tech stocks dipped right after Tesla CEO Elon Musk announced that the company is suspending Bitcoin transactions over environmental concerns.
Meanwhile, financial and utilities revived the three-day declining S&P 500.
According to ETrade Financial CIO Mike Loewengart, the decreased jobless claims indicate the gradual recovery of the US economy. It offset the losing streak the economy was undergoing a week ago, when the number of jobs in the nonfarm sector lagged far behind expectations and inflation has risen the most since 2009.
In fact, Crossmark Global Chief Market Strategist Victoria Fernandez said the markets are fearing that the Fed has lost control of inflation, and is waiting too long to cope with the rally.
At the same time, Musk tweeted that Tesla will halt Bitcoin transactions because of environmental concerns. Hence, on Thursday, S&P 500 rose by more than 1.1%, while the Nasdaq 100 gained only 0.7%.