Block, stock and barrel: Crypto-stocks surge as markets tick higher

Quick Take

  • Block was trading at $62 on Tuesday, up 1%
  • Coinbase shares traded up 10% at $72.58
  • Financial markets were buoyant on Tuesday following the major rate hike surprise. 

Crypto-linked stocks were trading higher on Tuesday afternoon as financial markets perked up following a surprise interest rate decision in Australia. 

The macroeconomic environment continues to set the tone for markets, as has been the case throughout 2022. On Tuesday, stock futures rose higher following the Reserve Bank of Australia's (RBA) decision to increase interest rates by just 25 basis points this week, becoming the first major central bank to break the mold.

Indeed, the approach to rate hikes could be under threat going forward. The United Nations urged rich nations to temper restrictive rises on Monday, for fear of disadvantaging poorer nations. On the back of this equities rose higher, as the U.S. dollar waned. 

Jack Dorsey's Block was up over 11% on Tuesday, trading at $62 at the time of writing, according to Nasdaq data via TradingView. Block performed modestly through a turbulent third quarter of 2022, trading at $67.02 on July 5 and closing the quarter on Friday at $54.99.

Elsewhere, crypto exchange Coinbase received a much-needed bump in its share price, up just over 10% to $72.58. Last week COIN shares in the exchange plummeted on a profitability warning from Wells Fargo. 

Trading in these crypto-related stocks was in keeping with the broader equities market in the U.S. on Tuesday, as the S&P 500 rose over 2.6% and the Nasdaq jumped 2.8% — tech companies in the Nasdaq composite were green across the board. 

Traders will be watching Friday's jobs report from the U.S. as non-farm payrolls are released on the first Friday of every month. It's estimated the U.S. labor market grew by around 250,000 jobs in September.

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