Price Action:

*Bitcoin and Ethereum have both seen upward momentum, with BTC gaining 1.81% and ETH registering a modest rise. Strong buying interest and accumulation continue to support the short-term bullish trend, but both cryptos are nearing overbought levels. While the fundamentals remain strong, caution is warranted as technical indicators point to potential selling pressure on the horizon.

Friday

*U.S. stock futures saw modest gains following new economic data that indicated a cooling economy, reinforcing expectations of further Federal Reserve rate cuts. Treasuries rallied, with 10-year U.S. Treasury yields falling to around 3.76%, while S&P 500 futures rose 0.2% after the index reached its 42nd record close of the year. The dollar weakened.

*The Fed’s preferred inflation gauge showed core inflation, excluding food and energy, increasing by 0.1% in August and rising 2.7% year-over-year, aligning with forecasts. Inflation-adjusted consumer spending also ticked up 0.1%.

*Chinese equities recorded their largest weekly rally since 2008, with trading volume surging after Xi Jinping’s government implemented stronger economic stimulus measures.

*Bitcoin is set to achieve one of its best September performances, benefiting from global interest-rate cuts, led by the U.S. Federal Reserve, helping the cryptocurrency break its typical seasonal trend.

Thursday

*The market anticipates that Mexico’s central bank will lower its benchmark interest rate by 25 basis points to 10.5% on Thursday. Forward guidance is expected to signal the possibility of further rate cuts, while maintaining that monetary policy will remain tight and any adjustments will be gradual and data-driven.

*Recent on-chain data reveals significant Bitcoin transfers in the past few days, with $1 billion worth of BTC being moved from various unknown addresses to new wallets in batches of 2,000 BTC. The purpose and origin of these transactions are unclear, though one sender may be linked to Fidelity Custody, a prominent crypto custodian.

*Israel’s airstrikes killed the head of Hezbollah’s aerial unit in Beirut on Thursday, according to the Israel Defense Forces.

*US stocks are trending higher after a brief dip in tech shares. Investors are considering several factors, including a positive outlook from Micron Technology, data showing the US economy’s resilience, and China’s fiscal stimulus plans.

*The S&P 500 and Nasdaq 100 both rose, though they pulled back from their earlier highs. Meanwhile, the dollar remained lower, and the 10-year US Treasury yield climbed to around 3.81%.

*Earlier, revised data showed that the US economy recovered from the pandemic better than initially reported, with a drop in jobless claims highlighting the labor market’s strength.

Wednesday

*US stocks edged higher as investors awaited new economic signals, while China’s latest stimulus had limited impact outside of Asian markets.

*The S&P 500 gained after hitting its 41st record close of the year on Tuesday, with the Nasdaq 100 also rising, driven by Nvidia Corp. shares. The 10-year US Treasury yield hovered around 3.77%.

*Traders are looking for fresh momentum following last week’s half-point rate cut by the Federal Reserve, with attention now turning to a speech by Fed Chair Jerome Powell and upcoming inflation data.

*US new home sales dipped in August after a sharp rise in the previous month, as buyers remained cautious amid gradually falling mortgage rates.

*Meanwhile, Israel intensified its largest air strikes on Hezbollah in Lebanon since 2006, following the downing of the first missile ever launched at Tel Aviv by the group.

*China’s central bank cut the interest rate on its one-year policy loans by a record amount, launching a broad effort to boost confidence in the world’s second-largest economy.

Tuesday

*US stocks recovered from earlier losses after an unexpected plunge in consumer confidence, marking the steepest drop in three years, and casting doubt on the Federal Reserve’s ability to achieve a soft landing for the economy.

*The S&P 500 remained nearly flat after hitting a record high in the previous session, while the Nasdaq 100 ticked up 0.1%, recovering from earlier declines. The latest data from the Conference Board, released Tuesday, showed the largest drop in sentiment since August 2021, driven by growing concerns about the labor market. Additionally, manufacturing data fell short of expectations, adding to the economic uncertainty.

*In September, US consumer confidence fell sharply, reflecting mounting worries about the labor market and the overall economic outlook.

Monday

*US equities opened slightly higher as traders awaited new signals on the potential for further rate cuts following the Federal Reserve’s half-point reduction last week.

*The S&P 500 inched up 0.2%, fluctuating in a narrow range as Fed officials provided comments on Monday. Intel shares rose 1.6% after Apollo Global Management reportedly offered a multibillion-dollar investment in the company.

*Minneapolis Fed President Neel Kashkari expressed support for another half-point rate cut by year-end, citing a weakening labor market. Atlanta Fed President Raphael Bostic noted that starting with a large rate cut would help move interest rates closer to neutral, but cautioned against committing to a series of large moves. Investors are also awaiting the Fed’s preferred inflation metric and US personal spending data, due on Friday.

*Meanwhile, Israeli airstrikes on Hezbollah targets in southern Lebanon reportedly killed at least 100 people, heightening global concerns over the conflict’s escalation.

*Additionally, the PMI report showed the highest input prices in a year. The composite PMI came in at 54.4, slightly above expectations, while input prices surged to 59.1 from 57.8, and output prices reached their highest level since March at 54.7.