Price Action:
*Over the past 24 hours, Bitcoin and Ethereum have experienced notable price movements, with Bitcoin seeing a slight decline while Ethereum posted a significant gain. Despite these fluctuations, both cryptos maintain a short-term bullish trend, supported by strong accumulation and sustained trading above key moving averages. However, caution is warranted due to overbought conditions and the presence of some short-term bearish indicators.
Friday
*U.S. equity futures edged lower on Friday as disappointing earnings reports dampened optimism about the path of interest rates.
*S&P 500 futures fell less than 0.2%, following the index’s 39th record high of 2024. FedEx dropped 14% in premarket trading after missing profit expectations and warning of a business slowdown. In contrast, Nike rose after announcing a CEO change.
*In Europe, the Stoxx 600 index declined, led by Mercedes-Benz Group, which fell up to 8.4% after lowering its outlook due to weak sales in China. Treasury yields and the dollar index both rose, while gold reached another record high.
*The Federal Reserve’s aggressive half-point rate cut earlier this week boosted confidence in its ability to achieve a soft landing. However, FedEx’s warning highlights ongoing economic risks, with Fed officials signaling another half-point cut this year.
*MicroStrategy announced plans to use the $1.01 billion from a convertible senior notes sale to buy more Bitcoin and pay off higher-interest debt.
Thursday
*Wall Street traders optimistic about the Federal Reserve’s ability to engineer a soft landing fueled a rally in riskier assets, with stocks reaching new all-time highs.
*Nearly every sector in the S&P 500 advanced, pushing the index up 1.8%, marking its 39th record this year. The Nasdaq 100 rose 2.9%, and the Russell 2000 extended its winning streak to seven sessions. Bitcoin surged 5%, while bonds declined.
*The Fed’s aggressive rate cuts and its commitment to staying ahead of inflation reignited hopes of avoiding a recession. A report on Thursday showed jobless claims fell to their lowest level since May, indicating a strong labor market despite slower hiring.
*Sales of existing US homes dropped to a 10-month low in August due to ongoing affordability issues, even as mortgage rates recently eased.
*Shares of cryptocurrency-related companies surged alongside Bitcoin, which rallied in line with US equities following the Fed’s interest rate cut.
Wednesday
*US equity futures edged up slightly as global markets took a cautious stance ahead of the Federal Reserve’s interest rate decision. Traders are divided on whether the central bank will cut rates by 25 or 50 basis points, with market odds indicating a 55% chance of a larger cut.
*Fintech giant Revolut is reportedly planning to launch its own stablecoin.
*In July, crypto exchange Bitget purchased $30 million worth of Toncoin, the cryptocurrency tied to messaging app Telegram, in an over-the-counter deal, according to CEO Gracy Chen.
*Additionally, US housing starts rebounded in August, rising 9.6% to an annualized rate of 1.36 million — the fastest pace since April. This beat the median economist estimate of 1.32 million, according to Bloomberg.
Tuesday
*Stocks climbed after retail sales data released ahead of the Federal Reserve’s decision indicated that U.S. consumer spending remains resilient. The S&P 500 extended its gains for a seventh consecutive day, while Treasury yields ticked higher, with shorter-term bonds leading the increase. Despite the positive data, traders still anticipate a strong likelihood of a half-point rate cut by the Fed on Wednesday.
*In Lebanon, authorities reported that hundreds of people were injured after their pagers exploded, including Iran’s ambassador. The incidents occurred primarily in the southern suburbs of Beirut, where Hezbollah, the Iran-backed militant group, has offices.
*US retail sales in August saw an unexpected rise, driven by strong online purchases, which masked weaker performance from other retailers.
*BlackRock’s iShares Bitcoin Trust attracted $15.8 million in inflows on Monday, breaking a 13-day streak of flat or negative fund flows.
Monday
*Three Democratic senators have urged Federal Reserve Chair Jerome Powell and other policymakers to implement a substantial interest rate cut, advocating for a 75 basis-point reduction this week to safeguard the US economy from potential risks.
*Meanwhile, Wall Street traders, anticipating this week’s Fed decision, have continued shifting away from the tech megacaps that have fueled the stock market rally. Growing expectations for a half-point rate cut on Wednesday have driven capital toward economically sensitive sectors, moving away from the perceived safety of large tech stocks.
*Apple dropped 3% after a well-known analyst noted weaker-than-expected demand for the iPhone 16 Pro. While the S&P 500 posted a slight decline on Monday, the majority of its components saw gains.
*Additionally, according to a recent post on X by ecoinometrics, MicroStrategy now holds 1.17% of all Bitcoins, with its growing Bitcoin holdings surpassing those of many ETFs.
