🟢 The period from July 10 to July 14 turned out to be very successful for the stock and cryptocurrency markets. This was facilitated by the publication of data on inflation in the U.S. – 3%, with analysts’ forecasts – 3.1%. Cryptocurrencies almost did not react to the publication, but the stock market perked up.
🟢 For the week, the S&P 500 was up about 2.6% and the Nasdaq was up 4.2%. Headlining the gains in the technology sector was AMZN stock. On Prime Day, over 375 million products sold for $6.4 billion on the first day (up 6% year-over-year). The second day was $6.3 billion, giving many companies in the related sector a boost. But there are still recession risks in the U.S. economy. Locally, the stock market may feel selling pressure next week. As the indices have been rising for 5 days in a row.
🟡 Also this week the period of reports has started. Analysts forecast a 7.2% year-on-year decline in corporate profits, which will be the sharpest drop since Q2 2020. But tradition has it that as the banks report, so will the rest of the reporting season. WFC and JPM reported well, but after the market opened, the stock began a correction (after the Gap Up in the pre-market). What can be guaranteed is that there will be a noticeable increase in stock market volatility.
🟢 The cryptocurrency market started to grow later than the stock market. The decisive news is that Ripple won the ruling that XRP is not a security, the judge also ruled that institutional sales of XRP Ripple are securities.
🟢 Against this backdrop, the XRP exchange rate surged 97% at one point. Other altcoins also started to rise strongly. Coins that the SEC leadership had previously called securities grew the most. This is because the US has case law. In the common law system, particularly in the U.S., a precedent is a court case that establishes a principle or rule that courts will use when deciding future cases with similar circumstances. Due to the fundamentals, the crypto market capitalization grew by 7.6% to the $1.25 trillion mark.
🟢 There has been a substantial decline in the dominance of BTC. Market participants are actively pouring capital into altcoins.
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