Stocks and cryptocurrencies are moving in opposite directions today, breaking a trend that has more or less held steady since the market crashed in mid-March.
While cryptocurrencies have undergone slight dips in the past 24 hours—Bitcoin, Ethereum and Ripple have all fallen by anywhere between 1% and 3%—the Dow Jones Industrial Average (DJIA) has surged another 250 points, continuing its rally from yesterday.
The S&P 500 is another big winner today and on a steady rise. The market is now experiencing its best trading week in over 40 years, according to CNBC.
The moves follow news that the Fed is providing another $2.3 trillion in relief and assistance for businesses affected by the coronavirus pandemic. The details of the Fed’s latest plan include deferred interest and payment loans for businesses with less than $2.5 billion in annual revenue and fewer than 10,000 employees.
The Fed is also considering the purchase of junk bonds as a means of taking on “high-yield debt” and assisting energy ventures during the crisis.
By contrast, oil has lost a whopping 9% since yesterday and has fallen to $23 per barrel as traders await the details of OPEC’s previously announced production rate cuts.
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.