Here are five things you must know for Tuesday, April 6:
1. — Stock Futures Trade Lower After Record Rally
Stock futures pointed to a lower open for Wall Street Tuesday, a day after equities rallied to all-time highs on optimism over an economic rebound in the U.S.
Contracts linked to the Dow Jones Industrial Average fell 37 points, S&P 500 futures slipped 7 points and futures on the tech-heavy Nasdaq declined 29 points.
The Dow and the S&P 500 closed at records on Monday after U.S. employers added the most workers to payrolls in seven months and other data offered evidence that the economy was improving. An accelerated vaccine rollout and a gradual lifting of COVID-19 restrictions have boosted the economic outlook.
“The jobs report underscored the rebound in the labor market,” said Quincy Krosby, chief market strategist at Prudential Financial. “The only thing that can stymie this rebound, this recovery, will be that COVID-19 launches another wave.”
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The yield on the 10-year Treasury dipped Tuesday at 1.704%.
Oil prices in the U.S. rebounded 2.3% to $60 a barrel after slumping sharply on Monday after OPEC+ leaders decided to gradually boost crude production from May through July.
2. — Credit Suisse to Record $4.7 Billion Charge From Archegos Implosion
Credit Suisse (CS) – Get Report said it would record a charge of 4.4 billion Swiss francs ($4.7 billion) from the implosion of hedge fund Archegos Capital Management.
The Swiss banking giant said the charge would lead to a first-quarter pretax loss of about 900 million francs.
The bank said it would cut it dividend and suspend stock buybacks to protect its capital.
Credit Suisse also announced investment bank chief Brian Chin and Chief Risk Officer Lara Warner would be stepping down.
The company last week warned that it faced potentially “significant” losses from its exposure to the massive unwinding of leveraged equity bets by Archegos Capital.
Credit Suisse reportedly sold $2.3 billion worth of stocks tied to Archegos earlier this week.
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3. — Cryptocurrency Market Value Rises to More Than $2 Trillion
The value of the cryptocurrency market rose to more than $2 trillion for the first time on Monday, and has doubled in about two months.
Bitcoin alone is worth more than $1 trillion, according to GoinGecko. The market cap of the world’s largest cryptocurrency was at $1.095 trillion early Tuesday. The price of bitcoin dipped slightly Tuesday to $58,581 – it hit a record high of $61,000 last month.
Analysts remain divided as to whether bitcoin is a fad or an asset…