The S&P 500 broke through 6,300 for the first time in history on Tuesday, as rising demand for crypto stocks and tech names sent U.S. markets higher across the board.
This happened just a day after Wall Street posted small gains even with President Donald Trump threatening 30% tariffs on Mexico and the European Union, starting August 1.
According to CNBC, stock futures were already flashing green before the open. S&P 500 futures rose 0.3%, Nasdaq 100 futures climbed 0.55%, and Dow Jones futures moved up just 13 points, or 0.03%. Monday’s session had already closed in the green.
The Dow added 88 points (0.2%), the S&P 500 ticked up 0.1%, and the Nasdaq Composite pushed 0.3% higher. With earnings from big banks coming soon and a fresh inflation reading around the corner, investors are loading up on risk.
Bitcoin breakout pulls COIN and MSTR higher
The rally in the S&P 500 is closely tied to a breakout in bitcoin, which surged above $123,000 last week and cleared its previous ceiling. With that resistance now flipped into support near $108,300, analysts are watching for a climb toward $134,500. The MACD is trending positive, and stochastics are turning higher, giving bulls reason to stay in.
That breakout is fueling rallies in crypto-linked stocks. Coinbase (COIN) confirmed a move above $346, a price level that hadn’t been breached since 2021. The pattern is forming a long-term cup-and-handle, and if it plays out, COIN could run to around $460.
Momentum is also building, with a Golden Cross—the 50-day average crossing above the 200-day, adding technical support. The last time bitcoin showed that same crossover in November 2024, the market consolidated for a few weeks before heading higher again.
MicroStrategy (MSTR) is following a similar path, as per usual, riding bitcoin’s wave. Analysts have noted that COIN and MSTR tend to hold a 60% or higher correlation with bitcoin’s price, making them top bets for traders looking to gain exposure. The strength in these stocks comes just as retail interest spikes again, partly fueled by social media and a surge in attention on platforms like X.
On Tuesday, Jim Cramer joked about the trend, calling Palantir, Applovin, Robinhood, and Coinbase the new “PARC” stocks in a post. “A new acronym for the meme stocks that just won’t quit!!! PARC!” he wrote. Although he referred to them as meme stocks, HOOD and COIN are heavily tied to crypto, and the market clearly isn’t laughing.
Asia markets jump on China GDP and Nvidia chip sales
Meanwhile, Asian stocks opened higher on Tuesday, with a boost from stronger-than-expected growth in China. The country’s economy grew 5.2% in the second quarter, beating the 5.1% estimate. But it still slowed compared to the 5.4% growth recorded in Q1. The data was released by China’s National Bureau of Statistics.
The Hang Seng Tech index in Hong Kong rallied 2.14% late in the day. Traders bought up companies that import Nvidia’s H20 chips, after the company said it would resume sales to China. The top three gainers on the index jumped 6.83%, 6.41%, and 5.53%, though their names weren’t included in the report.
Elsewhere in Asia, the Straits Times Index in Singapore climbed to a fresh high of 4,128.18, before settling at 4,124.71. That marked the seventh straight gain, led by stocks in industrials, consumer non-cyclicals, and utilities.
In Japan, long-dated bonds saw heavy selling. The 30-year government bond yield rose 14.5 basis points to 3.191%, setting a new record. The move comes ahead of the upper house elections scheduled for July 20. 10-year JGBs reached 1.594%, the highest level since 2008, while 20-year yields moved to 2.634%, last seen in 1999.
* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
