Summary
- Monday’s market roundup portrays quiet trading with limited catalysts after a volatile week.
- Market consolidates prior moves as traders reassess Fed woes, U.S. tariff jitters, and geopolitical fears.
- U.S. recession fears, Trump’s meddling in BLS and U.S. nuclear submarines near Russia test risk-takers.
- Mid-tier U.S. data, Wall Street earnings will decorate the calendar, but risk catalysts will drive key market moves.
Market sentiment remains slightly positive as Monday’s New York trading session begins with fewer catalysts and mixed risk news after a volatile week. That said, Bitcoin (BTC) extends the previous day’s rebound with 1.0% intraday gains to $115,200, whereas the spot gold (XAU) prices rise for the third consecutive day to $3,380, up 0.40% by the press time.
Among the key factors, U.S. President Donald Trump’s firing of the Bureau of Labor Statistics (BLS) Commissioner Erika McEntarfer and deployment of nuclear submarines near Russian waters gained major attention.
Also important were comments from White House NEC Director Kevin Hassett, fears surrounding the U.S. economic health, and the Federal Reserve’s (Fed) next move, especially following last week’s downbeat data.
Elsewhere, the U.S. Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) jointly announced “Crypto Sprint” to implement suggestions from the Trump Administration in their “Crypto Policy Report”, which in turn allowed cryptocurrencies to pare the previous week’s losses, along with institutional buying and halving news.
Wall Street also reverses Friday’s heavy losses with eyes on today’s earnings from Palantir, along with this week’s results from Eli Lilly, AMD, and McDonald’s.
Against this backdrop, the US Dollar Index (DXY) licks its wounds after the biggest daily slump since April. Even so, the risk assets like equities, Gold, Bitcoin (BTC), and commodity-linked currencies edge higher following a turbulent week that raised concerns about the U.S. economic health and the Federal Reserve’s (Fed) reaction.
The Latest Clues
White House NEC Director Kevin Hassett, allegedly Trump’s favorite for the Fed Chair position, spoke on CNBC and criticized the U.S. BLS performance after last week’s drastic revision to the Nonfarm Payrolls (NFP) figures for June. The White House’s Hasset also advocated for rate cuts and allowed risk assets to remain firmer, at least for now.
Moody’s Chief Economist Mark Zandi raised concerns about the U.S. recession while citing the latest downbeat data and the Fed’s resistance to cut the rates. This joined Trump’s repeated pressure to cut rates, especially after Friday’s U.S. jobs report, to weigh on the U.S. Dollar and help equities, Gold, and Bitcoin, despite sluggish markets.
It should be noted, however, that Trump’s steep tariffs on major economies and the recent deployment of two nuclear submarines near Russian waters raised the market’s fears. The Republican leader has been using tactics to push Moscow toward a peace deal with Ukraine of late.
Additionally, Trump’s firing of the U.S. BLS Commissioner Erika McEntarfer and a surprise resignation of Fed Governor Adriana Kugler also raised fears about the independence of the U.S. economic agencies.
China’s rare earth metal export restrictions to the U.S. and disappointing PMI data added to economic worries, especially with ongoing trade tensions. Japan also raised doubts about the U.S.-Japan trade deal’s enforceability, whereas Canada and Switzerland showed readiness to restart the trade negotiations with Washington.
Cryptocurrencies, equities recover
The US SEC and CFTC’s “Crypto Sprint” announcement, Metaplanet’s heavy BTC buying, and the market’s adjustment of the risk appetite allowed the top-tier cryptocurrencies to consolidate the previous weekly losses.
Also read: Urgent Crypto Sprint: CFTC and SEC to Cooperate on White House Recommendations
Wall Street benchmarks rise over 1.0% each, recovering from Friday’s heavy losses, as traders await this week’s top-tier earnings results, starting with today’s after-market update from Palantir Technologies.
The latest downbeat U.S. data increased pressure on the Fed to cut rates, and the markets seem to be positioning for the same ahead of September monetary policy announcements. Additionally, chatters surrounding the Trump administration’s ability to avoid the U.S. hardships via tariffs, as they manage to gain deals with many countries, also seem to help the U.S. equities, along with previous positive earnings from top-tier U.S. companies.
Also read: JP Morgan Reports BTC Miner Profits Hit the Highest Levels Since Halving
- Gold rises for the third consecutive day, up 0.40% intraday to $3,378 by the press time.
- Bitcoin (BTC) extends the previous day’s rebound, up nearly 1.0% around $115K by the press time.
- Ethereum (ETH) rises 4.0%, stretching Sunday’s recovery to $3,635 as we write.
- U.S. Dollar Index (DXY) seesaws at 98.70, lacking clear directions after the biggest daily slump since April.
- Wall Street Jumps: Having witnessed a downbeat closing the previous day, Wall Street benchmarks print gains during the initial hours even if stocks in Asia and Europe drifted lower.
- WTI Crude Oil prints a three-day losing streak, down 1.4% intraday to $66.25 as we write.
Palantir, risk catalysts eyed…
Looking forward, a light calendar and holiday in Canada could restrict the market moves on Monday, allowing traders to extend the latest consolidation. Even so, results from Palantir Technologies and key risk catalysts like headlines about the U.S. tariffs, Trump’s political moves, and pressure on the Fed to cut rates will gain major attention. That said, the U.S. Dollar might witness indecision, but the risk assets could pare previous losses unless any major anti-risk news takes place.
