Key takeaways
- Poland shot down drones in its airspace, marking NATO’s direct intervention in the Ukraine war, escalating geopolitical risks.
- U.S. producer prices unexpectedly declined, reinforcing expectations of a Fed rate cut next week.
- The ECB held rates steady at 2% but kept the door open for further easing amid political turmoil in Europe.
- Bitcoin surged above $113,900 while gold steadied near $3,641 as investors sought protection from risk.
markets showed a cautious mix of gains and losses as investors weighed NATO involvement in Ukraine against cooling U.S. inflation data that reinforced expectations of a Federal Reserve rate cut next week.
On the diplomatic front, Poland became the first NATO member to fire shots during Russia’s war in Ukraine, destroying suspected drones in its airspace with allied support. Polish Prime Minister Donald Tusk described the move as “the closest we have been to open conflict since World War Two,” as he stressed the crisis had not crossed into full-scale war.
President Donald Trump spoke with Poland’s president after the incident, calling it a breach of sovereignty and pledging allied unity.
Separately, protests flared across France, with nearly 500 people detained as demonstrators opposed spending cuts, while political instability deepened in Paris following Prime Minister Sebastien Lecornu’s contested appointment.
In Washington, Trump ordered flags flown at half-staff after conservative commentator Charlie Kirk was shot dead at a Utah event, in an attack officials described as politically motivated.
On the economic front, U.S. producer prices unexpectedly declined 0.1% in August, signaling firms may be absorbing tariff costs and hinting at weaker demand.
Traders fully priced in a quarter-point rate cut at the Fed’s meeting next week, with expectations of further easing later this year.
In Europe, the ECB kept its deposit rate steady at 2% but left the door open for additional cuts, as President Christine Lagarde warned of ongoing risks from U.S. tariffs, German spending, and political turmoil in France.
Meanwhile, the S&P 500 and Nasdaq hit record closes, buoyed by a 36% surge in Oracle after its AI-driven cloud forecast, which spilled over into chipmakers, like Nvidia and AMD.
Rising geopolitical tension drove investors toward safe havens, lifting Bitcoin to $114,000 even as Wall Street pushed to fresh highs on the back of technology strength. Meanwhile, oil climbed up on NATO’s intervention in Poland and renewed Middle East tensions, though gains were tempered by swelling U.S. inventories and rising OPEC+ output.
In Crypto, Bitcoin rallied past $113,900, climbing more than 2% in 24 hours as traders positioned for Fed easing and elevated geopolitical risk.
Ethereum advanced to $4,349 while Solana surged over 3% above $224, supported by fresh institutional flows.
Price movements
Global Indices
- S&P 500 Index (SPX): 6,532.03 (+0.30%)
- Dow Jones Industrial Average (DJI): 45,490.92 (−0.48%)
- Nasdaq Composite Index (IXIC): 21,886.06 (+0.03%)
- Nikkei 225 Futures (NK2251!D): 44,000.0 (0.30%)
- Euronext 100 Index (N100-D): 1,602.96 (+0.15%)
- FTSE 100 (FTSE): 9,252.0 (+0.13%)
Cryptocurrencies
- Bitcoin (BTCUSD): 113,945 (+2.16%)
- Ethereum (ETHUSDT): 4,348.61 (+0.89%)
- Binance Coin (BNBUSDT): 893.82 (+1.57%)
- Solana (SOLUSDT): 224.29 (+3.26%)
- BTC Dominance (BTC.D): 58.35% (+0.33%)
Major Stocks
- Nvidia (NVDA): 177.33 (+3.85%)
- Tesla (TSLA): 347.79 (+0.24%)
- Microsoft (MSFT): 500.37 (+0.39%)
- Meta Platforms (META): 751.98 (−1.79%)
- Apple (AAPL): 226.79 (−3.23%)
- Amazon (AMZN): 230.33 (−3.32%)
Commodities
- Silver (XAGUSD): 41.16 (+0.11%)
- Gold (XAUUSD): 3,641.28 (+0.10%)
- WTI Crude Oil (USOIL): 63.76 (+0.03%)
- Brent Crude Oil (BRENT3!): 68.16 (−3.68%)
Forex
- U.S. Dollar Index (DXY): 97.395 (+0.05%)
- EUR/USD: 1.1703 (+0.07%)
- GBP/USD: 1.3535 (+0.06%)
- USD/JPY: 147.35 (−0.08%)
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