U.S. Markets Stagnate After Investment Fund Makes Massive Margin Call

The Dow Jones and other market indicators show uncertainty in this morning’s market after Archegos Capital Management Fund called in a number of positions in a $30 billion selloff.

The Dow is currently down 20 points to 33,052 (-0.06%), while the S&P 500 is down 21 points to 3,953 (-0.54%). The Nasdaq fell 126 points this morning following the news, down to 13,012 (-0.96%).

News came out early Monday that Bill Hwang’s Archegos Capital Management hedge fund had sold upwards of $30 billion in various investments, including huge selloffs in Discover (DISCA) and ViacomCBS (VIAC) that contributed to their worst one-day trading sessions ever recorded.

The news also sparked statements from worldwide investment banks Credit Suisse and Nomura Holdings to announce losses to their investors. Shares of Credit Suisse are currently down over 12%, with Nomura Holdings down over 13% in this morning’s market. 

Credit Suisse and other unnamed investment banks announced they would be pulling their money out of the fund, though they did not mention it by name.

The funds website was taken offline Monday morning and management from the fund has not provided comment to the press. 

Cryptocurrency has seen impressive gains this morning after news that Visa would be accepting USD Coin as payment from their cryptocurrency partner Crypto.com. Bitcoin is up $2292 this morning to $58,073 (+4.11%) and Ethereum has rallied $95 to $1779 (+5.51%) following the news. Ethereum would have been the second choice to complete the transaction between Visa and Cryto.com according to reports.

European markets have remained largely unfazed by the Archegos selloff, with the Stoxx 600 posting a small gain of 0.89 point to 427.82 (+0.21%). London’s FTSE faltered slightly by 7 points, down to 6,732 (-0.11%) while the DAX remained steady with a gain of 89 to 14,838 (+0.61%).

Asian markets have reversed their trend of losses with Shanghai’s Composite going green for the first time since early last week, up 16 points to 3,435 (+0.5%). Hong Kong’s Hang Sang Index (HSI) remained mostly neutral with a gain of just over a point to 28,338 (+0.01%) while Japan’s Nikkei 225 posted a remarkable gain of 207 points to 29,384 (+0.71%).

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