Bitcoin Price Surge Sparks Rally in Crypto-Linked Stocks

Stocks tied to the price of bitcoin surged on Thursday as the popular cryptocurrency hit another record high, sparking a rally in related industries. Investors flocked to crypto-related companies, driving up their stock prices amid the soaring value of bitcoin. One of the notable gainers was the crypto exchange Coinbase, which saw a 3% increase in its stock value. Similarly, bitcoin proxy MicroStrategy experienced a significant surge of nearly 10%. Other crypto mining companies such as Marathon Digital, Riot Platforms, and Iris Energy also benefited, each gaining more than 2% in stock value. CleanSpark, a company involved in software and control technology for microgrid energy systems, saw a jump of about 7% in its stock price. In the traditional market sector, Texas Roadhouse rose nearly 3% following an upgrade to outperform by Baird. Investment bank Moelis & Co. also experienced positive movement, with shares gaining almost 4% after an upgrade by Goldman Sachs to neutral from sell. However, not all companies saw positive movement in their stock prices on Thursday. Electric carmaker Tesla's stock slid by 3.5% after a downgrade by Wells Fargo to underweight from equal weight. Chipmakers Nvidia, Advanced Micro Devices, and Micron Technology faced declines as the AI-related rally faltered, with Nvidia slipping 3%, Micron dropping 3.8%, and AMD losing 4.2%. In the retail sector, Dollar Tree shares plummeted more than 13% following a disappointing quarterly report and the announcement of potential store closures by its subsidiary, Family Dollar. The negative news also impacted Dollar General's stock, which fell 3% as investors awaited its upcoming earnings report on Thursday. Healthcare companies were also in the spotlight, with GE Healthcare's shares dropping 3% after the company announced a secondary offering of 13 million shares. On the other hand, Legend Biotech saw its shares rise by 4.6% after Raymond James initiated coverage with an outperform rating, citing optimism around the company's Carvykti therapy. Cruise line operators Royal Caribbean and Carnival witnessed an uptick in their stock prices after Goldman Sachs initiated buy ratings for them, highlighting pricing power and pent-up demand for cruise stocks. Royal Caribbean and Carnival saw increases of 1.7% and 1.8%, respectively. Elsewhere, Petco Health and Wellness shares tumbled 6% after the company announced the search for a new CEO, despite reporting a revenue beat for the fourth quarter. Tesla, after being downgraded by Wells Fargo, saw its shares dip by 2%. Meanwhile, Eli Lilly's partnership with Amazon Pharmacy to deliver certain prescription drugs led to a nearly 1% increase in its share price. These market movements reflect the dynamic nature of the financial landscape, where various external factors and company-specific news can influence investor sentiment and stock prices. The continued rise of bitcoin and its impact on related industries underscores the growing interest and investment in the cryptocurrency space, driving significant movements in the stock market across different sectors.