Price Action:

*Bitcoin and Ethereum both experienced declines in the past 24 hours, with BTC dropping by about 2.7% and ETH by around 3%. Both cryptocurrencies are trading below key moving averages, indicating a bearish trend, but are approaching oversold conditions, suggesting potential for a short-term rebound.

Friday

*A stock rally that had been on track to make this week the best of 2024 slowed down on Friday, as traders analyzed recent economic data for insights on the Federal Reserve’s future policy. Following a six-day upward trend, the S&P 500 experienced some fluctuations as gains stabilized. With Federal Reserve Chair Jerome Powell’s upcoming speech in Jackson Hole just a week away, investors paused to digest economic indicators that suggest the Fed may not need to implement aggressive rate cuts soon, as the economy is not in severe decline. Consequently, traders have reduced their expectations for significant rate cuts, while still anticipating the first reduction in September.

*Spot gold surpassed $2,500 an ounce for the first time, driven by growing expectations that the US Federal Reserve is moving closer to lowering interest rates.

*Binance and other global cryptocurrency exchanges have started resuming operations in India after being banned late last year for not registering with authorities. Binance, the world’s largest exchange, announced on Thursday that its website and app are now accessible in India following its registration with the Financial Intelligence Unit in May. KuCoin, based in Seychelles, also restarted its operations in India in April after registering with the FIU, according to a spokesperson.

Thursday

*Stocks rose while bonds fell after retail sales data highlighted the resilience of the U.S. economy, easing concerns that the Federal Reserve’s high interest rates could trigger a significant economic slowdown.

*The UK continued its steady recovery from last year’s recession, giving Prime Minister Keir Starmer a solid economic foundation as he aims to stimulate growth and improve public finances. The country’s GDP grew by 0.6% in the second quarter, following a 0.7% increase in the first quarter, according to the Office for National Statistics. This growth, which matched economists’ expectations, was driven by strong government spending and the services sector.

*The value of crypto hacks nearly doubled to $1.6 billion in the first seven months of 2024, driven by a rise in digital-asset prices, according to Chainalysis Inc. Despite the surge in the amount stolen, the number of hacks increased only slightly, with 149 incidents reported so far this year compared to 145 during the same period in 2023, according to a report by the blockchain analytics firm on Thursday.

Wednesday

*Stocks, bonds, and the dollar saw fluctuations after a key inflation report provided little new information to shift expectations that the Federal Reserve might begin cutting interest rates next month.

*Equities remained mostly unchanged in early New York trading, following the S&P 500’s strongest four-day performance of 2024. Treasury yields showed some volatility, while swap traders factored in about a 40 basis-point Fed rate cut in September, anticipating a total reduction of over 105 basis points for the year. The dollar stayed near its four-month low.

*After the inflation data was released, Bitcoin remained steady at around $61,000, indicating that the market had largely anticipated the figures, leaving Bitcoin’s price unaffected.

*In the UK, inflation increased less than economists and the Bank of England had predicted, leading traders to raise their expectations for further interest rate cuts.

Tuesday

*Stocks climbed as investors anticipate an upcoming U.S. inflation report, which will be closely examined for its impact on the Fed’s favored inflation measure.

*In early New York trading, equities moved slightly higher, with Nvidia driving gains among large-cap stocks. However, Home Depot saw a sharp decline after revising its forecast for a key sales metric downward, citing expectations that consumers will continue to reduce spending. Oil prices fell, with the potential escalation of conflict in the Middle East being balanced by the International Energy Agency’s forecast of a surplus if OPEC+ follows through on its planned production increase in the next quarter.

*Meanwhile, trading activity in Chinese stocks dropped to its lowest point in more than four years, as a surge in local bond markets occurred amid a weakening economy.

*U.S. producer prices increased in July, but the rise was smaller than expected, marking the first drop in service costs this year as inflationary pressures continue to ease.

Monday

*Last Monday’s global market meltdown now appears to have been just a brief episode of panic, triggered by a minor policy change from the Bank of Japan and renewed concerns about a US recession. However, the rapid onset and equally swift recovery of the market revealed how fragile it is, particularly as hedge funds have leveraged this vulnerability to finance massive bets across global markets.

*US equity futures saw modest gains as traders geared up for a week filled with data that could provide insights into the state of the US economy and the future direction of Federal Reserve interest rates. S&P and Nasdaq futures rose about 0.3%, while Europe’s Stoxx 600 index trimmed a 0.5% gain.

*Marathon Digital Holdings, a Bitcoin mining company, announced plans to sell $250 million in convertible senior notes and intends to use the funds to purchase more Bitcoin. In July, the company revealed that it had bought $100 million worth of Bitcoin and was resuming its strategy of holding Bitcoin on its balance sheet. The Fort Lauderdale, Florida-based firm is retaining all the Bitcoin it mines and will continue to make additional purchases on the open market.