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Wall Street futures dip as Biden meets China’s Xi – Crypto collapse continues – Funds vanish at FTX with probe underway; company allegedly used billions in customer funds for trading – Key stock market earners this week
Wall Street futures fell on Monday as President Joe Biden and Chinese President Xi Jinping held a meeting intended to restore communication between the US and China, Investor’s Business Daily reported.
Prior to Monday’s opening bell, Dow Jones futures fell 0.2%, with S&P 500 futures falling further to 0.3%, and the tech-heavy Nasdaq 100 futures moving down the farthest to dip 0.6%.
The benchmark 10-year Treasury yield climbed to 3.89%, while oil prices declined over 1%, falling after a two-day rebound, and West Texas Intermediate futures traded just below $88 a barrel.
The collapse of cryptocurrency trading firm FTX has had repercussions throughout the industry. Just a day after Solana (SOL) lost more than half of its value, falling 60% over the last seven days, Decrypt reported.
Bitcoin has plummeted roughly 65 percent so far this year, and analysts believe it could fall below $10,000, CNN reported.
Ether, the second-most valuable cryptocurrency, lost 20 percent over the last week, CoinDesk reported.
FTX confirmed on Saturday that “unauthorized access” to its accounts occurred just hours after the company filed for chapter 11 bankruptcy on Friday after crashing from a $32 billion cryptocurrency powerhouse, Yahoo reported. Analytics firm Elliptic estimated that $477 million was missing from the exchange. Another $186 million was moved out of FTX’s accounts, but that may have been FTX moving assets to storage.
A debate is raging on social media about whether the exchange was hacked or a company insider has stolen funds.
FTX founder Sam Bankman-Fried was trading billions of dollars from FTX accounts and leveraging the exchange’s native token as collateral through Alameda Research, a trading firm he founded, CNBC reported. Allegedly, none of this was disclosed to customers, and only a small cohort within the company was aware of the potential misuse of customer deposits.
The key earners this week of Dow Jones stocks include Cisco Systems (CSCO), Home Depot (HD), and Walmart (WMT), as well as Applied Materials (AMAT), Kohl’s (KSS), Lowe’s (LOW), Macy’s (M), Nvidia (NVDA), Palo Alto Networks (PANW) and Target (TGT). Advanced Micro Devices (AMD) also rallied more than 3%.
Amazon.com (AMZN) slipped more than 1%. Tesla (TSLA) traded down 1%. Apple (AAPL) and Microsoft (MSFT) were also lower ahead of Monday’s stock market open.
