Today was a volatile day in the stock market, with the Dow Jones Industrial Average dropping over 200 points and the price of Bitcoin rising.
The Dow Jones Industrial Average plunged over 200 points in late trading on Tuesday, as investors had a mixed reaction to the latest economic data. The index, which tracks 30 of the largest companies in the U.S., closed down 206 points, or 0.7%. The S&P 500 and the Nasdaq Composite also fell, with the S&P 500 dropping 0.4% and the Nasdaq Composite down 0.2%.
The market reaction came after the release of the latest U.S. retail sales figures. The data showed that retail sales rose 3.2% in April, better than expected and the biggest jump since March 2020. However, the data also showed that the pace of recovery from the pandemic-induced recession is slowing.
Meanwhile, the price of Bitcoin rose sharply on Tuesday, with the digital currency hitting a new all-time high of $64,000. Bitcoin has been on a tear lately, as investors have been betting on the cryptocurrency as an inflation hedge amid the economic recovery.
The stock market’s mixed reaction to the latest economic data is reflective of the uncertainty in the markets. Investors are still trying to gauge the strength of the economic recovery, and the latest data suggests that the recovery is losing steam. At the same time, the rally in Bitcoin is a sign that investors are looking for alternative investments amid the uncertainty.
Overall, it was a volatile day in the markets, with the Dow plunging over 200 points and Bitcoin hitting a new all-time high. Investors will be watching to see if the economic recovery can pick up steam, and if Bitcoin can continue its rally.