US Stock Indices Rise; Bitcoin Surges Past $100K; Most Chinese Stocks Gain

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The financial markets witnessed a positive turnaround on Thursday, May 8, as major U.S. indices closed higher, Bitcoin reclaimed the $100,000 level, and most Chinese stocks posted gains. A combination of favorable macroeconomic data and international trade developments contributed to improved investor sentiment across global markets.

Market Recovery Driven by Trade Deal and Strong Employment Data

U.S. equities advanced across the board, with all three major indices ending the day in positive territory. The Dow Jones Industrial Average rose 0.62%, closing at 41,368.45 points. The S&P 500 gained 0.58%, reaching 5,663.94 points, while the Nasdaq Composite led the rally with a 1.07% increase to 17,928.14 points.

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This upward movement was fueled by two key catalysts: the announcement of a new U.S.-UK trade agreement framework and stronger-than-expected labor market data.

U.S.-UK Trade Agreement Boosts Investor Confidence

President Trump announced a preliminary trade framework between the United States and the United Kingdom aimed at reducing non-tariff barriers and expanding market access for American goods in the UK. While final details are expected to be finalized in the coming weeks, the deal has already had a positive impact on market sentiment.

James Knightley, Chief International Economist at ING, noted that while this agreement may not serve as a model for other nations due to the UK’s unique post-Brexit trade neutrality, it still represents a meaningful step toward strengthening transatlantic economic ties.

Labor Market Strength Eases Recession Fears

Adding to the optimism, the U.S. Bureau of Labor Statistics reported robust employment figures for April. Nonfarm payrolls increased by 177,000 jobs, surpassing the forecasted 138,000 and indicating continued strength in the labor market. The unemployment rate held steady at 4.2%, reinforcing confidence in the economy's resilience.

These indicators suggest that despite ongoing concerns about inflation and interest rates, the underlying fundamentals of the U.S. economy remain solid—a factor that has helped stabilize investor sentiment and support risk appetite.

Bitcoin Reclaims $100,000 Amid Renewed Risk Appetite

In a striking development, Bitcoin surged past $100,000 on Thursday, marking a significant psychological milestone for the leading cryptocurrency. The rally extended to other major digital assets, with Ethereum, Solana, and several altcoins also posting gains.

Thomas Perfumo, Global Economist at Kraken, attributed the surge to a broader revival in global risk sentiment:

“Bitcoin’s return to six-figure territory coincides with a resurgence in market optimism. Equities are performing strongly, and investors are once again willing to allocate capital to higher-risk assets. This renewed ‘animal spirit’ has quickly spilled over into crypto markets.”

However, not all experts view this rally as a sign of complete decoupling from traditional financial markets.

Leah Wald, CEO of SOL Strategies, cautioned:

“While Bitcoin has shown relative strength during periods of macro uncertainty, it’s premature to claim it has fully decoupled from equities. Its structural characteristics still align it more closely with high-volatility risk assets—performing well during bullish phases but often retreating when markets de-risk.”

This duality underscores Bitcoin’s evolving role: not quite digital gold immune to macro swings, but increasingly seen as a speculative asset that thrives in favorable financial conditions.

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Tech Giants Advance as Sector Momentum Builds

Major technology stocks contributed significantly to the broader market gains:

Despite these gains, Google confirmed layoffs affecting around 200 employees within its Global Business Organization division. The company stated the changes were part of a restructuring effort to enhance cross-team collaboration and improve client service efficiency.

Meanwhile, OpenAI made a strategic leadership move by appointing Fidji Simo—CEO and Chair of Instacart—as its new Chief Product Officer for Applications. CEO Sam Altman emphasized that he would remain focused on research, computational infrastructure, and safety initiatives.

Chinese Equities Show Resilience with Broad Gains

Most U.S.-listed Chinese companies ended the session higher, reflecting renewed investor interest in emerging market exposure.

The Nasdaq Golden Dragon China Index rose 0.97%, driven by strong performances across various sectors:

On the downside, some notable decliners included:

The mixed performance highlights sector-specific dynamics within China’s diverse economy—from booming tech innovation to structural challenges in real estate and education.

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Frequently Asked Questions (FAQ)

Q: Why did Bitcoin surge past $100,000?
A: The price surge was driven by improved global risk sentiment following positive U.S. economic data and the U.S.-UK trade deal announcement. Increased investor appetite for high-growth assets benefited crypto markets.

Q: Is Bitcoin now decoupled from traditional markets?
A: Not entirely. While Bitcoin has shown resilience during certain downturns, it still behaves largely like a high-volatility risk asset—trending upward during bullish phases and often correcting when equities decline.

Q: What does the U.S.-UK trade deal mean for investors?
A: It signals progress in post-Brexit economic alignment and could boost bilateral trade flows. While not a template for broader agreements, it supports sentiment in transatlantic markets.

Q: How reliable is the April jobs report?
A: The nonfarm payroll data is one of the most closely watched economic indicators in the U.S. A gain of 177,000 jobs—well above expectations—suggests labor demand remains strong, which can support consumer spending and economic stability.

Q: Which Chinese stocks showed the strongest gains?
A: Bitdeer Technologies (+19%), Pony.ai (+13%), and ACM Research (+11%) led the rally, reflecting investor enthusiasm for sectors like AI, electric vehicles, and semiconductor technology.

Q: Should I invest in cryptocurrencies during market rallies?
A: Cryptocurrencies are highly volatile and should be approached with caution. Investors should assess their risk tolerance, diversify portfolios, and consider long-term fundamentals rather than short-term price movements.

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