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2024-01-24 13:45:00+00:00

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The New Bitcoin ETFs Are a No-Brainer Way to Build Wealth, but Only If You Plan to Buy and Hold for the Long Term

https://finance.yahoo.com/news/bitcoin-etfs-no-brainer-way-134500711.html

Motley Fool

http://www.fool.com/

It's been less than two weeks since the new spot Bitcoin (CRYPTO: BTC) exchange-traded funds (ETFs) started trading, but they already appear to be a resounding success. In fact, at least two of the new spot Bitcoin ETFs have attracted more than $1 billion in new investor money, and assets under management of these new ETFs are growing at a rapid rate. The big question, though, is whether investors fully intend to make these new ETFs part of a long-term buy-and-hold strategy. Initial data appears to indicate higher-than-expected trading volume in these ETFs, and that could be a signal that investors are moving rapidly in and out of them in response to the changing price of Bitcoin . To avoid falling into the trading trap, here are three things to keep in mind. Image source: Getty Images. 1. Focus on Bitcoin's long-term performance While the new spot Bitcoin ETFs are often described as a way of buying Bitcoin, a more precise way of thinking about them is that they are a way of gaining exposure to the price performance of Bitcoin. If the price of Bitcoin goes up by 150% (as it did last year), then your ETF should also go up by 150%. That's what makes the new ETFs so attractive to many investors -- they make it easy to gain access to Bitcoin's potentially jaw-dropping returns without any previous knowledge or experience with crypto. If you review the historical evidence, it's easy to understand Bitcoin's allure. In the decade from 2011-2021, Bitcoin was the best-performing asset in the world. And the same story was true in 2023, when Bitcoin outperformed every other asset class. Thus, while past performance is no guarantee of future performance, there's reason to think that the total return from your new Bitcoin ETF will be quite impressive a decade from now. 2. Don't overreact to Bitcoin's volatility But there's just one problem here: Bitcoin has not delivered reliable gains, year in and year out. In fact, there have been several years (including 2018 and 2022) when the price of Bitcoin absolutely cratered. Bitcoin remains a highly volatile asset, with wide price swings almost daily. So you really can't expect a nice, orderly upward march in the value of Bitcoin. Story continues And that's what has me concerned about the new Bitcoin ETFs. How will investors react to any plunge in Bitcoin's price, such as we're seeing now? In just the week after the new Bitcoin ETFs were available, the price of Bitcoin was down 12%. So what happens if the price goes down (or stays down) for a prolonged period of time? Even longtime buy-and-hold investors might start feeling a sense of buyer's remorse. If that leads to them to sell their ETFs, they could easily miss out on Bitcoin's long-term performance. Study after study has shown how hard it is to time the market consistently. Missing out on even a few days of Bitcoin's peak gains could doom your portfolio's returns to mediocrity. If you are selling every time there's a rough patch in the market, you will always be buying high and selling low, instead of buying low and selling high. 3. Minimize your cost of owning Bitcoin The new ETFs are designed to be the lowest-cost, most-efficient way of buying Bitcoin today. It's now cheaper to buy and hold a spot Bitcoin ETF for a year than it is to make a single trade on, say, Coinbase Global (NASDAQ: COIN) , the world's second-largest cryptocurrency exchange. The expense ratios of the new Bitcoin ETFs are minimal -- as low as 0.20% of the assets in the fund. So if you are trading your Bitcoin ETF, you are doing it all wrong. From a total cost of ownership perspective, all of those trading commissions and losses on bid-ask spreads are going to add up, and you will potentially be turning your low-cost asset into a high-cost asset. In the process, you will be losing out on the cost-efficient nature of the new Bitcoin ETFs. Buy and hold for the long haul Just keep in mind: The whole point of the new Bitcoin ETFs is to do all the hard work for you. For a minimal cost, you can now get exposure to Bitcoin. If you then hold onto that Bitcoin, you should be able to capture Bitcoin's long-term returns nearly 1:1. So if you are thinking about buying the new Bitcoin ETFs to build wealth, plan to buy and hold for the long haul. Should you invest $1,000 in Bitcoin right now? Before you buy stock in Bitcoin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Bitcoin wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*. See the 10 stocks *Stock Advisor returns as of January 22, 2024 Dominic Basulto has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin and Coinbase Global. The Motley Fool has a disclosure policy . The New Bitcoin ETFs Are a No-Brainer Way to Build Wealth, but Only If You Plan to Buy and Hold for the Long Term was originally published by The Motley Fool

2024-01-24 13:54:42+00:00

{"Bitcoin": [91, 546, 603, 809, 1071, 1770, 1907, 2057, 2413, 2524, 2933, 3099]}

{"Bitcoin": [42]}

Fidelity and BlackRock Are Dominating the Bitcoin-ETF Flow Race

https://finance.yahoo.com/news/fidelity-blackrock-dominating-bitcoin-etf-135442345.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Less than two weeks after US regulators fired the starting gun for ten spot Bitcoin exchange-traded funds, it’s increasingly looking like a two-horse race for new assets. Most Read from Bloomberg Russia Says Ukraine Downed Plane Carrying Prisoners for Swap Trump Races Toward 2024 Biden Rematch After New Hampshire Win Apple Dials Back Car’s Self-Driving Features and Delays Launch to 2028 Billionaire Joe Lewis Pleads Guilty in Insider Trading Case Ackman Ramps Up Israel Support With Stake in Tel Aviv Bourse BlackRock’s iShares Bitcoin Trust (ticker IBIT) and the Fidelity Wise Origin Bitcoin Fund (FBTC) are leading the field with about $1.9 billion and $1.6 billion of inflows, respectively, according the latest available data compiled by Bloomberg. That’s roughly a combined 70% of spot Bitcoin ETF inflows so far. The early dominance speaks to the might of the two asset management giants’ marketing and distribution channels, which has likely helped to land the products in both institutional and retail portfolios. That bid has persisted even as Bitcoin plunged post-launch, dragging both IBIT and FBTC to double-digit losses. Their distribution muscle, combined with name recognition that smaller issuers might not enjoy, have given the pair a massive lead on the rest of the field. “BlackRock and Fidelity have both the liquidity and the brand recognition that some of the other issuers don’t have — especially when it comes to retail investors who are hesitant about investing in an emerging asset class,” said Roxanna Islam, at ETF data and analytics firm VettaFi. “It’s still early in the race, but I think the gap between BlackRock and Fidelity and the other issuers will only widen the more their volume and assets increase.” The Bitwise Bitcoin ETF (BITB) is a distant third with a $518 million haul, followed closely by a $509 million influx for Cathie Wood’s ARK 21Shares Bitcoin ETF (ARKB). While it’s a crowded field, the strong showing from the middle of the pack suggests there’s room for multiple issuers in the spot Bitcoin ETF arena, in the eyes of the ETF Store’s Nate Geraci. Story continues “It’s no small feat for an ETF in any asset class to hit $500 million, let alone a billion in assets under management,” said Geraci, president of the advisory firm. “To achieve this in a novel asset class less than two weeks after launch is highly impressive.” All of the spot Bitcoin ETFs that began trading this month have posted net inflows so far, with the exception of the Grayscale Bitcoin Trust (GBTC). While GBTC is by far the world’s largest cryptocurrency fund with $22 billion in assets, it has shed roughly $4 billion since it converted into an ETF. GBTC carries an industry-high fee of 1.5% — lower than its 2% cost prior to conversion, but still magnitudes greater than its closest competitors. Franklin Templeton’s fund has a post-waiver 0.19% expense ratio — the lowest among spot-Bitcoin ETFs — while BlackRock and Fidelity are close behind, with eventual fees of 0.25% after a waiver period. Read more: Grayscale CEO Says Track Record Justifies Bitcoin ETF Fees Over the longer-term, odds are that the likes of BlackRock and Fidelity will remain atop the leaderboard, according to Anthony Scaramucci of SkyBridge Capital. “BlackRock and Fidelity will be the two dominant names. They have the largest sales forces,” Scaramucci, founder of SkyBridge, said on Bloomberg Television this month. “The gravity of financial services are assets, and those are two of the largest players in the ETF space. So I suspect those will be the two winners.” Most Read from Bloomberg Businessweek Goldman, Lazard Look to Ex-Spies to Gain an Edge in Volatile World Stuck in a Downturn, Startups Ghost Investors It’s the Tesla Earnings Call—Time for Elon Musk Bingo Hong Kong’s High Rents Create a New Type of Cross-Border Commuter Can America’s New Union Hero Take on Elon Musk’s Tesla? ©2024 Bloomberg L.P.

2024-01-24 14:00:00+00:00

{"Bitcoin": [0, 264, 462, 483, 523, 552, 586, 614, 641, 673, 933, 1073, 1122, 1165, 1208, 1540, 1548, 1707, 2014]}

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GBTC: The Biggest Spot Bitcoin ETF Arrives

https://finance.yahoo.com/news/most-liquid-spot-bitcoin-etf-140000229.html

etf.com

https://www.etf.com/

Bitcoin The U.S. Securities and Exchange Commission approved ETFs that invest directly in bitcoin after the market closed on Jan. 10. And like that, the market wasted no time rolling out eight new products on Jan. 11. At $37.07 per share on Jan. 19, the Grayscale Bitcoin Trust (GBTC) had about $24 billion in assets under management. GBTC trades an average of more than 37 million shares daily and charges a 1.50% management fee. The other seven ETFs that hold Bitcoin are: Bitwise Bitcoin ETF (BITB) Fidelity Wise Origin Bitcoin Fund (FBTC) Franklin Bitcoin ETF (EZBC) Invesco Galaxy Bitcoin ETF (BTCO) Valkyrie Bitcoin Fund (BRRR) VanEck Bitcoin Trust (HODL) WisdomTree Bitcoin Fund (BTCW) While the ETFs have different expense ratios, GBTC ranks as the most liquid product. Liquidity is critical for investors and traders as it provides the tightest bid-offer spreads and the most correlation to volatile bitcoin prices. GBTC vs Bitcoin Since Jan. 11 The day-to-day percentage gains or losses for bitcoin and GBTC from Jan. 12 through Jan. 18 were as follows: Jan. 12: Bitcoin fell 0.1% lower, GBTC fell 0.7% Jan. 16: Bitcoin fell 0.9%, GBTC rose 1.0% Jan. 17: Bitcoin fell 0.1%, GBTC rose 0.6% Jan. 18: Bitcoin fell 3.5%, GBTC fell 2.9% We should never expect the same daily results from bitcoin compared to GBTC as bitcoin trades around the clock, while ETFs are only available during stock market trading hours. Over the early days of the leading spot bitcoin ETF, GBTC has done an decent job tracking the cryptocurrency. Bullish on Bitcoin Bitcoin remains in a bullish trend despite the recent pullback. After the cryptocurrency's explosive move to its late 2021 high, an implosive plunge followed. Bitcoin found a bottom in November 2022 and has made higher lows and highs throughout 2023 and into early 2024. While the trend remains bullish, the leading cryptocurrency reacted to the SEC’s approval of spot bitcoin ETFs with “buy the rumor and sell the fact” price action. Story continues Qualified Spot Bitcoin Approval SEC Chairman Gary Gensler did not throw his whole-hearted support behind bitcoin when approving the spot ETFs. The Chairman’s comments speak for itself: “While we approved the listing and trading of certain spot bitcoin [Exchange Traded Product] ETP shares today, we did not approve or endorse bitcoin. Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto. Though we’re merit neutral, I’d note that the underlying assets in the metals ETPs have consumer and industrial uses, while in contrast, bitcoin is primarily a speculative, volatile asset that’s also used for illicit activity including ransomware, money laundering… sanction evasion and terrorist financing.” The approval was far short of any endorsement. Is GLD a Model? Many investors and traders believe bitcoin is the new gold, and the highly successful SPDR Gold Trust (GLD) is a model for GBTC and other spot bitcoin products. GLD made gold investing more accessible for a vast swath of the addressable market. Since GLD’s introduction in November 2004, gold prices have made higher lows and highs in a rally that continues in 2024. Meanwhile, the SEC’s approval comes with an element of validation. The regulation will make more market participants comfortable owning bitcoin-related assets in standard equity accounts. Heeding Chairman Gensler’s cautionary message is critical. The potential for significant rewards in bitcoin and all cryptocurrencies comes with substantial risks. The explosive and implosive price history is why investors and traders should only invest capital they’re willing to lose. While a compelling case exists for global currencies that governments do not influence, remember that the most powerful aspect of governing is the control of purse strings. Governments and central banks worldwide often control the money supply and will refrain from surrendering it to cryptocurrencies any time soon. If the market cap of the cryptocurrency asset class in jumps significantly, expect legislative bodies and leaders to increase regulation and in some cases restrict or even ban the use of cryptos. While the trend is always your best friend and remains bullish, the future remains uncertain, with as many detractors as supporters of this highly volatile asset class. Permalink | © Copyright 2024 etf.com. All rights reserved

2024-01-24 14:36:34+00:00

{"Bitcoin": [83, 915, 1139, 1761, 2740, 3778, 3848]}

{"Bitcoin": [20]}

‘Alameda Gap’ Keeps Bitcoin Volatile Even as ETFs Boost Trading Volume

https://finance.yahoo.com/news/alameda-gap-keeps-bitcoin-volatile-143634433.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- A dearth of liquidity in the digital-asset market continues to roil Bitcoin, even with the first US exchange-traded funds to hold the cryptocurrency logging billions of dollars in trading volume since their debut. Most Read from Bloomberg Russia Says Ukraine Downed Plane Carrying Prisoners for Swap Trump Races Toward 2024 Biden Rematch After New Hampshire Win Apple Dials Back Car’s Self-Driving Features and Delays Launch to 2028 Billionaire Joe Lewis Pleads Guilty in Insider Trading Case Ackman Ramps Up Israel Support With Stake in Tel Aviv Bourse The ability to easily or quickly buy and sell the digital currency hasn’t improved since the 10 funds began trading Jan. 11, traders say. Liquidity is especially important in a relatively new market such as crypto, where a single large trade can have an outsized impact on an asset price, raising the risk of manipulation. “The emergence of spot Bitcoin ETFs, while very positive for overall market sentiment, do not have any noticeable impact on overall market liquidity,” said Jordi Alexander, the Singapore-based founder of digital-asset trading firm Selini Capital. Bitcoin has whipsawed investors since the ETF launch, fluctuating as much as 12% in the first 24 hours or so around the initial trading of the funds. One reason behind the wild swings may be that liquidity is still being hampered by the market blowups of 2022. The void left from the demise of Sam Bankman-Fried’s crypto exchange FTX and its sister firm Alameda Research, which was one of the sector’s biggest market makers, still hasn’t been filled. Crypto data firm Kaiko measures liquidity by using a metric called market depth, which it calculates the quantity of bids and asks that are within 1% of the mid-price for Bitcoin’s trading pairs on exchanges. The higher the measure is, the more liquid the market, and vice versa. Without deep liquidity, the crypto market will likely continue to face more volatility, Kaiko analysts say. Story continues “The weaker a market’s depth, the easier it is for large market orders to move the price, which negatively impacts traders,” wrote Clara Medalie, head of growth at Kaiko, in a note. Kaiko dubbed the decline in liquidity the “Alameda Gap” in 2022. In addition to Alameda, other top market-making firms such as Jane Street Group and Jump Crypto have pulled back from trading crypto, as Bloomberg reported last year. “While liquidity has been better in the last three months, we don’t expect a return to the deep books of last cycle in altcoins, as that was primarily driven by loss-making desks at Alameda and other centralized exchange trading desks trying to boost attention and volumes,” Alexander said. Despite the billions of dollars worth of Bitcoin that was purchased and sold for the ETFs, Alexander said that most of that activity was happening through large over-the-counter desks, which doesn’t help bolster overall liquidity or market depth. ‘With large market makers having left the space over 2022-2023, a number of smaller shops have stepped in to take their place,” said Darius Tabatabai, co-founder of decentralized exchange Vertex Protocol. “That has meant that liquidity during low volatility regimes has once again improved, the absence of those with larger balance sheets is still felt when volatility hits and can lead to large, often violent liquidations as few market makers are happy to take large risk onto their books.” The ETFs have seen more than $20 billion in trading volume since they were launched, making them among the most successful introductions of exchange-traded products, according to data compiled by Bloomberg Intelligence. Still, the trading volume is in the equity shares and not all the transactions result in the creation or redemption of Bitcoin. To complicate the situation, the conversion of the Grayscale Bitcoin Trust to an ETF has led to around $4 billion in redemptions from the former trust. GBTC shares often traded at a discount to the value of the underlying assets. “People probably got a little overzealous front running the ETF flows and there was some portion of GBTC holders that were not hedged, that were waiting for the discount to go away to sell it,” Spencer Hallarn, global head of over-the-counter trading at crypto investment firm GSR. Most Read from Bloomberg Businessweek Goldman, Lazard Look to Ex-Spies to Gain an Edge in Volatile World Stuck in a Downturn, Startups Ghost Investors It’s the Tesla Earnings Call—Time for Elon Musk Bingo Hong Kong’s High Rents Create a New Type of Cross-Border Commuter Can America’s New Union Hero Take on Elon Musk’s Tesla? ©2024 Bloomberg L.P.

2024-01-24 20:11:00+00:00

{"Bitcoin": [164, 1842, 2494, 2627, 2775, 3240, 3272, 3430, 3577, 4004, 5526, 5575, 5925, 6500, 6519, 7312]}

{}

Are cryptocurrency rewards credit cards a good idea?

https://finance.yahoo.com/news/cryptocurrency-rewards-credit-cards-good-110041071.html

Bankrate

https://www.bankrate.com

Key takeaways Crypto rewards cards offer a newer addition to the rewards currencies that include points, miles and cash back: rewards that automatically convert to Bitcoin, Ethereum and other cryptocurrencies. Unlike the rewards of a traditional credit card, the value of your crypto rewards has the potential to rise in value as coin values increase… or decrease, if the trend of plummeting coin values since the heyday of crypto continues. Though these cards are a low-risk way to build crypto coins, you could be better off with a traditional card that earns you more lucrative cash back — and then invest that cash into crypto, if you like. Credit card rewards historically fall under three types of rewards currencies — points, miles or cash back . But cryptocurrency is now a rewards currency, too, thanks to the launch of several rewards credit cards since 2021’s crypto heyday. The rewards process for these cards is fairly simple and works similarly to a traditional cash back program. With most crypto cards, you earn a percentage of your purchases back in U.S. dollars, which you can then use to buy or add to your crypto stash, usually automatically. The initial appeal of crypto credit cards was the “high risk, high rewards” aspect of crypto investing. For example, cardholders in the midst of the crypto frenzy believed they could earn cash back with a crypto credit card, move their rewards into an active digital currency, and then grow their rewards haul exponentially as the value of their crypto exploded. But crypto winters since have resulted in the plummeting value of many cryptocurrencies, with prices for even the most popular coins down considerably from all-time highs. The price of a single bitcoin, for example, surged to $64,400 in November 2021 and stands at less than $40,000 as of January 2024. Same for the Bitcoin competitor Ethereum, which reached a high of $4,811.70 in November 2021 and now holds less than half that value today. Story continues The case for crypto rewards cards Of course, that’s not what people who opt for crypto credit cards hope for. The benefit of crypto credit cards is that, unlike other types of rewards currencies, the value of crypto has the potential to increase. Not only that, but people who are interested in investing in crypto but don’t have the cash to do so can begin building their digital assets by using their card for regular spending and bills. While the card is no longer available to new applicants, the Upgrade Bitcoin Rewards Visa® Credit Card was an early crypto rewards card that earned cardholders 1.5 percent cash back, which converted to Bitcoin as they paid off their purchases. It meant you could use the card for $1,000 in spending and bills, pay off your balance off and get $15 in Bitcoin deposited into your card’s rewards account. This card didn’t charge an annual fee either, and interest charges didn’t apply because you never carried a balance from one month to the next. Imagine you got this card and used it for $2,000 a month in regular spending and bills over the course of a year. If you paid off the entire $24,000 in balances with each billing statement and never carried debt from one month to the next, you might have earned $30 in Bitcoin each month — or $360 in Bitcoin over the 12 months. With a regular rewards card , that $360 in cash back wouldn’t have had the potential to grow in value. But let’s say the value of Bitcoin increased 20 percent over the year you had the Upgrade card. In that case, your $360 rewards haul could be worth $432. And if the value of Bitcoin increased 50 percent, your rewards value could be $540. That’s the appeal of crypto rewards cards. The other side of the crypto coin Of course, with all that’s happened in the crypto world over the last few years, among the downsides of crypto credit cards is the value of your cryptocurrency could also decrease dramatically, causing your rewards value to drop right along with it. If you were able to earn rewards in Bitcoin at the time but didn’t spend them, for example, your rewards could be worth less than half of their original value. Of course, the idea of investing credit card rewards to help them grow isn’t new — cards that automatically invest your cash back in the stock market have existed for years. Fidelity, for example, launched a credit card in 2016 that offers unlimited 2 percent cash back when deposited into an eligible Fidelity account, like a brokerage account or an IRA. — Ted Rossman, Bankrate Senior Credit Card Industry Analyst There’s also a reason to be leery of platform-specific cryptocurrency credit cards, since they don’t really do anything for you that you can’t do yourself. For example, you could instead opt for a cash back credit card with the highest possible rate, then redeem your rewards for cash back and use the funds to buy cryptocurrency yourself. In that case, you could use any platform you wanted to buy your crypto, or you could even store it using a cold wallet that keeps your information and private crypto keys off the web. And either way, you just can’t beat the versatility of a traditional cash back card. For some, the ability to spend cash back on anything — whether that’s crypto, a grocery store trip or a splurge purchase — is better than being locked into crypto, even if that means manually investing your earnings and paying the typical USD-to-cryptocurrency conversion fees. How much can you earn with a crypto rewards card? We mentioned how the now-unavailable Upgrade Bitcoin Rewards Visa offered 1.5 percent back in Bitcoin as you paid your purchases off with no annual fee. However, there are other crypto credit cards to consider. For example, the Gemini Credit Card® lets you earn 3 percent back on dining, 2 percent back on groceries and 1 percent back on all other purchases. There’s no annual fee for the Gemini Credit Card, and you can opt to earn rewards in Bitcoin, Ethereum or any other cryptocurrencies currently available on the Gemini platform. Then there’s the Venmo Credit Card , which offers 3 percent back in your top eligible spending category, 2 percent back in the next top spending category and 1 percent back on other purchases. The eight flexible spending categories that qualify for bonus rewards include bills and utilities, dining and nightlife, entertainment, gas, grocery purchases, health and beauty, transportation and travel. The Venmo Credit Card doesn’t have an annual fee, and rewards can be converted into Bitcoin, Ethereum, Bitcoin Cash or Litecoin. The bottom line Only you can decide if a crypto credit card is a good idea, but you should compare the top crypto cards to regular cash back credit cards before you make a decision. Instead of getting a crypto-specific card, you could always sign up for a cash back card that earns a flat 2 percent back with no annual fee, then invest your rewards into any cryptocurrency you want with a platform of your choosing. Also, know that the jury is out on whether crypto is on the rise or doomed to fail in the long run. Whether you should invest in crypto is a larger conversation, but if you are optimistic about crypto’s future — or even just crypto curious — these rewards cards offer a fairly low-risk way to get some skin in the game. *Information about the Upgrade Bitcoin Rewards Visa® Credit Card, Gemini Credit Card® and Venmo Credit Card has been collected independently by Bankrate. Card details have not been reviewed or approved by the card issuer.

2024-01-24 21:47:18+00:00

{"Bitcoin": [3386]}

{}

Nasdaq 100 Gains for Fifth Day; Treasuries Decline: Markets Wrap

https://finance.yahoo.com/news/china-rescue-buoy-asia-stocks-225502945.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- US stock indexes ended Wednesday off session highs, after earnings-related optimism fueled by Netflix Inc. moderated and traders tempered their expectations for Tesla Inc.’s quarterly figures. The electric-vehicle maker reported disappointing results after the market closed, sending its shares lower in after-hours trading. Most Read from Bloomberg Musk Fails to Convince Tesla Investors to Overlook Slowdown Boeing Growth Plans Set Back as Regulator Blocks Higher Output Russia Says Ukraine Downed Plane Carrying Prisoners for Swap How Yemen’s Houthi Attacks Are Hurting the Global Supply Chain The S&P 500 finished the day little changed while the tech-heavy Nasdaq 100 jumped 0.5%. US Treasury yields rose, with the 30-year rate climbing to its highest level so far this year. The Bloomberg Dollar Spot Index trimmed earlier declines. Among corporate results reported after the closing bell, Tesla expects slower growth this year and International Business Machines Corp. anticipates strong free cash flow in 2024. Investors are now bracing for a slew of US economic data — including gross domestic product — set to release on Thursday. They’re continuing to mull when the Federal Reserve will cut interest rates. “Frankly, everything depends on the incoming data now and there are a lot of potentially significant releases over the next few weeks that could swing the odds of a March rate cut in either direction,” Paul Ashworth, chief North America economist at Capital Economics, wrote. “We still think the Fed will lower rates by 25 basis points at that upcoming meeting.” US data that released earlier on Wednesday showing business activity expanded in January by the most in seven months bodes well for stocks, according to Renaissance Macro’s Neil Dutta. “Growth is up and inflation is down. The former puts a ceiling on how many cuts the Federal Reserve will do while the latter means the Fed still ends up cutting,” he said. “Very good scenario for equity markets.” Story continues Read: Hedge Fund Stars Who Got China Wrong Are Paying a Big Price Earlier, Bank of Canada held its key interest rate at 5%, as expected, and signaled it’s done hiking. Also on the roster this week is European Central Bank’s policy meeting on Thursday. Euro-area bond yields slipped earlier after data showed business activity contracted in January for the eighth month. Elsewhere, industrial metals prices received a boost after China signaled plans to stimulate its economy by cutting the reserve requirement ratio for banks. The move should allow Chinese banks to step up lending and their purchases of government bonds. The news also supported Brent crude around $80 a barrel. Key events this week: Eurozone ECB rate decision, Thursday Germany IFO business climate, Thursday US GDP, initial jobless claims, durable goods, wholesale inventories, new home sales, Thursday Japan Tokyo CPI, Friday US personal income & spending, Friday Bank of Japan issues minutes of policy meeting, Friday Some of the main moves in markets: Stocks The S&P 500 was little changed as of 4 p.m. New York time The Nasdaq 100 rose 0.5% The Dow Jones Industrial Average fell 0.3% The MSCI World index rose 0.1% Currencies The Bloomberg Dollar Spot Index fell 0.2% The euro rose 0.2% to $1.0880 The British pound rose 0.2% to $1.2717 The Japanese yen rose 0.5% to 147.62 per dollar Cryptocurrencies Bitcoin rose 0.7% to $39,485.13 Ether fell 0.1% to $2,199.39 Bonds The yield on 10-year Treasuries advanced five basis points to 4.17% Germany’s 10-year yield declined one basis point to 2.34% Britain’s 10-year yield advanced two basis points to 4.01% Commodities West Texas Intermediate crude rose 1.3% to $75.35 a barrel Spot gold fell 0.8% to $2,012.42 an ounce This story was produced with the assistance of Bloomberg Automation. --With assistance from John Viljoen, Cristin Flanagan, Julien Ponthus, Sujata Rao, Felice Maranz and Isabelle Lee. Most Read from Bloomberg Businessweek Goldman, Lazard Look to Ex-Spies to Gain an Edge in Volatile World How the West’s Favorite Autocrat Engineered Africa’s Most Dramatic Turnaround Stuck in a Downturn, Startups Ghost Investors It’s the Tesla Earnings Call—Time for Elon Musk Bingo Can America’s New Union Hero Take on Elon Musk’s Tesla? ©2024 Bloomberg L.P.