Market Digest: Dollar Gains 0.24% After Trump’s Fed Chairperson Backing and Crypto Regulation Push

Key Takeaways

The U.S. dollar rallied as markets steadied amid political uncertainty and mixed inflation signals, supported by President Trump’s assurance that he would not dismiss the Fed chairperson.
Regulators made progress on three key cryptocurrency regulation bills, boosting crypto markets by 2.9% as investors welcomed the prospect of clearer rules.
U.S. wholesale prices held steady in June, signaling easing inflation and raising hopes for possible Fed rate cuts later this year.
President Trump reaffirmed 25% tariffs on Japanese imports and launched new trade talks with India, shifting U.S. focus to bilateral deals in Asia.

The U.S. dollar surged Thursday, with the Dollar Index climbing to 98.6 as markets absorbed the latest Consumer Price Index (CPI) report and calmed after a political upheaval over Federal Reserve leadership. Despite inflation data signaling persistent price pressures, investor nerves steadied following President Trump’s assurances that he would not fire the Fed’s chairperson, which eased fears of abrupt shifts in monetary tightening. The combination of economic signals emerging from the CPI report and Trump’s stance about not dismissing the Fed chairperson fueled a broad-based rally in the dollar.

The markets had wobbled following reports that President Trump considered removing Federal Reserve Chair Jerome Powell, raising alarm over potential political interference. However, President Trump quickly dismissed the report as “highly unlikely”, and this helped temper the market apprehensions.

U.S. prices at the wholesale level didn’t rise in June, and this, economists say, is a sign that inflation may be cooling off, which may lead the Federal Reserve to lower interest rates later this year. Analysts also view the unchanged wholesale prices as a sign that supply chain pressures may be easing faster than anticipated. If this trend continues, consumer price relief could follow within months.

Trade headlines also shaped market sentiments. President Trump reaffirmed 25% tariffs on Japanese imports while unveiling new trade negotiations with India, just days after announcing a deal with Indonesia. The targeted approach signals a pivot toward bilateral deals aimed at reshaping U.S. trade dynamics in Asia.

More positive developments unfolded for American investors as the U.S. House of Representatives advanced three key crypto regulation bills, overturning a previous blockade. Following nine hours of intense negotiations, the move represents the first major legislative effort to establish federal oversight of digital assets, signaling a potential turning point in the regulation of the burgeoning crypto industry.

With this, the crypto market rose, indicating investors may view clearer rules and institutional stability as positive for both traditional and digital assets. Bitcoin surged up to $120 in the last 24 hours, and now hovers around $118,600 with investors hoping for better clarity in the next few days.

Global Indices

S&P 500 (SPX): 6,263.70 (+0.32%)
Dow Jones Industrial Average (DJI): 44,254.78 (+0.53%)
Nasdaq Composite (IXIC): 20,730.49 (+0.25%)
Nikkei 225 (NK225!): 39,890.00 (+0.57%)
Euronext 100 (N100): 1,566.07 (-1.24%)
FTSE 100 (FTSE): 8,926.55 (-0.13%)

Individual Stocks

NVIDIA Corp. (NVDA): 171.37 (+0.39%)
Tesla Inc. (TSLA): 321.67 (+3.50%)
Microsoft Corp. (MSFT): 505.62 (-0.04%)
Meta Platforms (META): 702.91(-1.05%)
Apple Inc. (AAPL): 210.16 (+0.50%)
Amazon.com Inc. (AMZN): 223.19 (-1.40%)

Commodities

Gold (GOLD): $3,330 (-0.64%)
Silver (SILVER): $37.8425 (-0.17%)
WTI Crude Oil (USOIL): $66.57 (+0.29%)
Brent Crude: $68.56 (+0.06%)

Cryptocurrencies

Bitcoin (BTCUSD): $118,367.0 (-0.28%)
Ethereum (ETHUSDT): $3,431.81(+8.46%)
Solana (SOL): $173.694 (+4.84%)
BNB (BNBUSDT): $ 716.24 (+3.39%)

Forex

U.S. Dollar Index (DXY): 98.62 (+0.24%)
EUR/USD: 1.1583 (-0.51%)
GBP/USD: 1.3384 (-0.35%)
USD/JPY: 148.64 (+0.53%)

Market Wrap-up:

As political uncertainty subsides and inflation data signals a potential easing, markets may anticipate potential interest rate cuts ahead. At the same time, progress in clearer crypto regulations could unlock increased institutional investment, further propelling the growth of digital assets. Nevertheless, persistent global trade disputes and lingering doubts over the Federal Reserve’s independence may keep the market volatility elevated in the coming weeks.