A busy trading week is coming to an end. The Fed Funds rate remained unchanged at 5.25% to 5.5%. The labor market was pleased with a cooldown — of 4.3% (expected 4.1%). This is a signal for the Fed to cut the rate in September.
🔴 The cryptocurrency market sagged noticeably after a 3-week growth. The capitalization of digital assets fell by 4.5%. The positivity after the Bitcoin-2024 conference was overridden by another speculation on Mt. Gox, displacement of 28,000 BTC by the US government, and geopolitical risks in the Middle East. Despite this, there has been the strongest accumulation of BTC and altcoins by cryptocurrencies since 2014. Historically, August and September are bad months for cryptocurrencies. But if they did rise during this period, they showed significant gains.
🔴 The stock market is closing out its worst week since April. The S&P 500 is down more than 3% and the Nasdaq is down 3.8%. Market participants are actively criticizing J. Powell for too long a tight monetary policy. High interest rates are already hurting companies’ profits. The reporting season is under the aegis of selling because of this. Even good reports after the Gap Up are being dumped (e.g. META).
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