U.S. equities markets jumped on Thursday as stock traders saw some relief after a number of weekly losses. All the major stock indexes rebounded after falling for nearly eight weeks in a row, while the crypto economy took some losses on Thursday, losing roughly 4% against the U.S. dollar during the past 24 hours. Meanwhile gold has been hanging below the $1,850 per ounce mark as Kitco’s Neils Christensen says gold markets remain “under pressure, seeing no major buying momentum.”

Analyst Says ‘Doom and Gloom’ Predictions ‘May Have Been Overdone’ Amid Stock Market Rebound

The Dow Jones Industrial Average, S&P 500, the Nasdaq, and NYSE composite all rallied during Thursday’s trading sessions. The S&P 500 rose about 2% reaching 4,057. 84 by the closing bell, while Nasdaq spiked 2.7%, hitting 11,740.65.

Markets check: It’s a better day as stocks continued to rebound from the lowest levels in over a year.

Nasdaq 100 is currently up 2. 99% https://t.co/SvxNwDuX3N pic.twitter.com/gbsgAlPP8B

— Bloomberg Markets (@markets) May 26, 2022

The Dow Jones rose by around 1.6% Thursday afternoon as it recorded five consecutive days of gains. Quincy Krosby is LPL Financial’s chief equity strategist. He believes that the rebound could be a sign of how some of last week’s doom-and-gloom predictions have been exaggerated.

“Although this was an expected, and highly talked about potential ‘oversold’ rally, the underpinning for today’s market climb higher, suggests that last week’s doom and gloom about the all-important U.S. consumer may have been overdone, along with the dire recession headlines,” Krosby told CNBC’s Tanaya Macheel and Jesse Pound on Thursday.

Many Believe Cryptos Are Decoupled. Alex Kruger says ‘Worst-case Scenario for Crypto Is Here ‘

Meanwhile, amid the equities rebound, the cryptocurrency economy faltered again on Thursday, losing 4% during the past 24 hours of trading. Bitcoin (BTC) lost a small percentage on Thursday dropping roughly 0.7%.

Ethereum (ETH), however, lost around 6.9%, alongside a number of alternative crypto assets that saw deeper losses than bitcoin. Although stock markets have improved, crypto assets have not. However, traders are discussing the possibility of crypto decoupling with stocks to improve their correlation.

Crypto Twitter: crypto did not decouple!

Nasdaq – +4% this Week

ETH: -3% this week (-13% open to trough)

— Alex Kruger (@krugermacro) May 26, 2022

The economist and trader Alex Kruger spoke about crypto decoupling from stocks on Thursday.

“Worst case scenario for crypto is here,” Kruger said. “Apathy and decoupling. The correlation between equities and apathy is now broken. Since Monday afternoon, it’s been mostly gone. Kruger’s statement was followed by a double-down on his comments. Kruger’s tweet was titled “Watch people who don’t trade and barely monitor charts or correlations.” It’s ok. Everybody copes differently,” Kruger added.

The bitcoin proponent Luke Martin, host of the Stacks podcast, also talked about digital currencies not bouncing back with equities markets.

” Seeing lots of tweets regarding stocks [and], crypto decoupling and crypto not bouncing off stocks,” Martin tweeted. “Charting gives a better picture of what’s happening: 1/ We had high correlation 2/ Luna collapse leads to more severe crypto selloff 3/ Post collapse crypto not making up the difference.”

As Gold Markets Slump, Peter Schiff Discusses the US GDP Contraction and Bitcoin’s Decoupling

Gold has also not increased in value and remains under the $1,850 per ounce price range against the U.S. dollar. 30-day statistics show an ounce of fine gold is down 1. 67% and 0. 27% was lost during the past 24 hours. On Thursday, Kitco’s Neils Christensen discussed gold’s slump in a report that highlights the recent U.S. Commerce Department report that notes the first-quarter gross domestic product (GDP) declined at a 1.5% annual rate. Christensen explained that the gold market has not responded to the disappointing economic data on Thursday.

Gold bug and economist Peter Schiff talked about the GDP shrinking 1.5% and also mentioned that bitcoin (BTC) has decoupled from Nasdaq. “The U.S. economy, supposedly the strongest it’s ever been, contracted by 1.5% in Q1, .2% more than analysts expected,” Schiff said on Thursday. “If [the] GDP contracts in Q2, then it is official that the economy is in recession.” The economist said that GDP can contract when the economy is weak [strong],.

Schiff continued Thursday, making sure to salt bitcoin’s market wounds. Schiff remarked:

Is bitcoin finally breaking free of its high correlation with the Nasdaq? While tech stocks are rising today Bitcoin is falling, almost breaking below $28K. My guess is that Bitcoin will continue to maintain its positive correlation with the Nasdaq, but only when it’s falling.

What do you think about the current state of markets and the economy?

Let us know your thoughts in the comments below.

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