Investing.com – Take a peek at the top 5 things that rocked U.S. markets this week.
JP Morgan’s Jamie Dimon ripped into Bitcoin again
Bitcoin prices ebbed and flowed throughout the week but remained on track for a third-weekly loss as investors mulled over comments from J.P. Morgan Chief Executive Jamie Dimon warning that governments will “close down” bitcoin and cryptocurrencies if they grow too large.
It is not the first time that Dimon has criticized the digital currency. A little over a week ago the JP Morgan boss labeled Bitcoin a “fraud” suggesting that it will “blow up”.
That warning sent shockwaves through the cryptocurrency industry, fuelling further uncertainty over the future prospect of the digital currency amid a Chinese crackdown on local exchanges.
The Fed signalled December rate hike in play
The policymaking Federal Open Market Committee (FOMC) agreed to keep its benchmark rate target at 1%-1.25% on Wednesday.
The "dot plot," part of the FOMC's Summary of Economic Projections, indicated that the central bank saw rates rising to between 1.25% and 1.5% by the end of the 2017, as members stuck with their previous outlook on rate hikes from the June meeting.
The unchanged rate-hike outlook was somewhat unexpected as investor expectations of a December rate hike in the run up to the Fed’s statement were slim amid expectations the sluggish pace of inflation would force the Fed to abandon its plan to hike rates at least once more this year.
The dollar rallied against its rivals on expectations of a year-end rate, scraping a weekly gain.
Apple suffered worst week in more than year
In what was a week of record highs for U.S. stock markets, shares of Apple tumbled more than 3% as the tech giant struggled to shake off recent criticism over its latest smartwatch the Apple Watch Series 3, which hit the shelves on Friday.
Apple confirmed the glitch earlier this week, assuring users that it was working on fix for a future software release.
Shares of Apple Inc (NASDAQ:AAPL) closed at 151.89, down 0.98%.
Crude oil settled above $50 a barrel
Crude futures settled above $50 a barrel on Friday, rounding off a rocky week which saw oil prices ebb and flow as investor expectations grew that Opec would decide to extend the output-cut agreement.
Members of the Organization of the Petroleum Exporting Countries (Opec) and other major producers failed, however, to reach a decision to extend output cuts beyond March 2018 at a meeting in Vienna on Friday.
Russia’s energy minister suggested that January is the earliest date that an extension to the global accord can be considered, as it allows ample time to assess the state of the market.
Gold fell to a weekly loss on rate hike expectations
The Federal Reserve’s signal to hike rates at least once more this year, drew the largest reaction from gold as the non-yielding precious metal slipped below $1,300.
In a rising interest rate environment, investor appetite for gold weakens as the opportunity cost of holding the precious metal increases relative to other interest-bearing assets such as bonds.
Losses were capped, however, as safe-haven demand returned after President Donald Trump and North Korean leader Kim Jong un traded insults on Friday amid expectations that Pyongyang to preparing to test a nuclear bomb.
Kim Jong-un said Trump was a "mentally deranged U.S. dotard" and hinted that Pyongyang was preparing to test a hydrogen bomb over the Pacific Ocean.
Demand for gold, however, is expected to remain subdued as data on Friday showed traders unwound some of their bullish bets on the precious metal.
Net bullish bets on gold fell to 236,100, according to a report from the Commodity Futures Trading Commission (CFTC) on Friday.
Gold prices traded at $1301.45, up 0.51% on Friday.