Key Takeaways
- U.S. inflation cools in July, with CPI rising just 0.2%, reinforcing market conviction that the Federal Reserve will begin cutting rates in September.
- The Trump administration and Fed officials are backing interest rate cuts, pointing to rising unemployment and slower hiring as reasons to ease policy this year.
- China and the U.S. entered a 90-day trade truce, while upcoming Trump–Putin talks raise the possibility of broader three-party diplomacy involving Ukraine.
- Bitcoin rallies to $122,000 and Bullish debuts strong, as crypto, gold, and equities ride a global wave of risk-on sentiment fueled by softer data and easing tensions.
Markets rose on August 13, lifted by growing hopes that the U.S. Federal Reserve will cut interest rates in September. The shift in tone follows both fresh inflation data and intensifying political signals from President Donald Trump’s team.
On the economic front, July’s Consumer Price Index showed a 0.2 percent rise in headline inflation, bringing the annual CPI rate down to 2.7 percent. The figures, released Monday, suggested continued disinflation, and markets took it as a green light for monetary easing. Traders now expect at least one rate cut next month, with some even bracing for a deeper 50-basis-point move depending on the Fed’s tone in coming weeks.
On the political front, the Trump administration quickly aligned its messaging with the inflation data. Treasury Secretary Scott Bessent said the report supports the case for near-term easing.
Within the Federal Reserve, Vice Chair Michelle Bowman pointed to signs of a weakening labor market, including rising unemployment and slower hiring, as justification for cutting interest rates. She said the latest data has strengthened her view that three rate reductions may be appropriate this year.
On the diplomatic front, trade tensions eased following news of a 90-day truce between the United States and China. The agreement opens the door for renewed negotiations and was welcomed by markets as a sign of potential progress after months of uncertainty.
Meanwhile, the White House confirmed that President Trump and Russian President Vladimir Putin will meet one-on-one in the coming weeks. Though no formal agenda has been released, the talks could pave the way for a broader Three-sided dialogue involving Ukraine. Investors remain cautiously optimistic, viewing the development as a potential step toward reduced geopolitical risk.
Markets welcomed the shift in tone, with the S&P 500 and Nasdaq Composite both touching new record highs Tuesday and holding firm through midweek trading.
In Asia, the rally extended to Japan, where the Nikkei 225 crossed 43,000 for the first time ever on strong corporate earnings and policy optimism.
Gold prices also climbed for the second consecutive session, gaining 0.5% to reach $3,365 per ounce.
Meanwhile, the U.S. Dollar Index (DXY) fell to 97.67, extending its decline as expectations for Fed cuts hardened.
In the cryptocurrency market, Bitcoin jumped 1.5% intraday to $122,000, while Ethereum reached a multi-year high at $4,660. Much of the optimism was fueled by the debut of Bullish, a crypto exchange backed by Peter Thiel, which opened over 75% above its IPO price, giving it a valuation near $13 billion.
Global Indices
- S&P 500 Index (SPX): 6,464.59 (+0.32%)
- Dow Jones Industrial Average (DJI): 44,922.27 (+1.04%)
- Nasdaq Composite Index (IXIC): 21,713.14 (+0.14%)
- Nikkei 225 Futures (NK225): 43,140.00 (-0.53%)
- Euronext 100 Index (N100): 1,597.29 (+0.64%)
- FTSE 100 (UKX): 9,145.40 (-0.28%)
Cryptocurrencies
- Bitcoin (BTCUSD): 122,711 (+2.17%)
- Ethereum (ETHUSDT): 4,750.61 (+3.40%)
- Binance Coin (BNBUSDT): 844.17 (+1.41%)
- Solana (SOLUSDT): 201.01 (+4.81%)
- BTC Dominance: 59.58% (-0.18%)
Major Stocks
- Nvidia (NVDA): 181.59 (-0.86%)
- Tesla (TSLA): 339.38 (-0.43%)
- Microsoft (MSFT): 520.58 (-1.64%)
- Meta Platforms (META): 780.08 (-1.26%)
- Apple (AAPL): 233.33 (+1.60%)
- Amazon (AMZN): 224.56 (+1.40%)
Commodities
- Silver (XAGUSD): 38.476 (+1.57%)
- Gold (XAUUSD): 3,355.28 (+0.21%)
- WTI Crude Oil (USOIL): 62.73 (-0.57%)
- Brent Crude (BRENT): 68.10 (-3.68%)
Forex
- U.S. Dollar Index (DXY): 97.353 (-0.28%)
- EUR/USD: 1.1702 (-0.03%)
- GBP/USD: 1.35695 (-0.03%)
- USD/JPY: 147.36 (-0.01%)
