Bitcoin and gold are stealing the spotlight as investors seek out alternative assets. On Monday, Bitcoin briefly surged past $42,000, its highest level in over a year, fueled by hopes of a Bitcoin exchange-traded fund approval and growing speculation on U.S. interest rate cuts. Meanwhile, spot gold prices hit a record high at $2,100 an ounce as investors flocked to this safe-haven asset.
U.S. stock markets took a breather on Monday, with investors questioning if the recent run-up was too rapid. After five consecutive weeks of gains, the Dow Jones Industrial Average closed up a modest 0.11%, while the S&P 500 and Nasdaq Composite slipped 0.54% and 0.84% respectively, largely due to a selloff in Big Tech shares. Asia-Pacific markets also experienced a downturn, with Japan’s Nikkei 225 and South Korea’s Kospi falling 1.4% and 0.7% respectively.
In airline news, Alaska Airlines’ $1.9 billion acquisition of rival Hawaiian Airlines has sparked debate. Critics argue that the airline executives may now face a lengthy process convincing regulators to approve the deal. This comes on the heels of the Justice Department’s lawsuit to block JetBlue Airways’ $3.8 billion acquisition of Spirit Airlines last year.
In the tech sector, Spotify announced it’s laying off 17% of its workforce, approximately 1,500 employees, in a bid to cut costs and adjust to slowing growth. Despite this, Spotify’s shares jumped over 7% on Monday. Similarly, software provider Twilio is laying off about 5% of its workforce, or roughly 300 jobs, following underperformance of a unit targeted by activist investors.
In legal news, the Department of Justice announced that Swiss bank Banque Pictet admitted to conspiring with U.S. taxpayers and others to hide over $5.6 billion from the IRS. The private banking division of the 218-year-old Pictet Group will pay approximately $122.9 million in restitution and penalties as part of an agreement with prosecutors.
Finally, Wall Street analysts are shifting their focus to a new Chinese e-commerce giant, which is not Alibaba. This firm boasts a market capitalization of nearly $190 billion, surpassing Alibaba’s $185.8 billion.
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