Summary
- Market roundup for Friday shows anxiety among traders amid mixed U.S. data and looming Alaska talks.
- Bitcoin prints mild gains to consolidate Thursday’s heavy losses, Gold lacks clear direction.
- U.S. Retail Sales match market forecasts, Empire State Manufacturing rallies, but U.S. Dollar eases.
- Speculation about Trump-Putin meeting, Jackson Hole will be the key drivers amid a light calendar.
Market Roundup for Friday: Traders on Edge Amid Fed, Political Anxiety
Having witnessed dicey U.S. Consumer Price Index (CPI) and upbeat Producer Price Index (PPI) figures earlier in the week, the U.S. Retail Sales and Core Retail Sales (Retail Sales excluding Autos) for July matched market forecasts on Friday. These joined mixed statements from the Federal Reserve (Fed) officials offer little support to the U.S. Dollar, which faces a second consecutive weekly loss.
U.S. retail sales for July grew by 0.5% month-on-month (MoM) to match expectations, with the prior figure revised to 0.9%. On the same line, the Core Retail Sales also met market forecasts at 0.3% MoM, compared to an upwardly revised 0.8% prior, the Retail Sales Control Group reprinted a 0.5% figure, with the previous data revised higher to 0.8%. The New York (NY) Empire State Manufacturing Index surged to a nine-month high of 11.9, well above the -1.2 expected and 5.5 prior readings in August.
Elsewhere, Chicago Fed President Austan Goolsbee spoke on CNBC, noting there is a note of unease from the last CPI and PPI data, which highlights the market’s indecision over the Fed’s next step, and weighed on the U.S. Dollar.
Previously, Richmond Fed President Thomas Barkin said that the business sentiment has picked up in some ways, but not in hiring. Further, St. Louis Fed President Alberto G. Musalem also stated that the inflation is running about 3% above the 2% target, adding, “Tariffs are impacting”.
Earlier in the day, China’s Industrial Production rose 5.7% Year-on-Year (YoY) in July, the weakest growth since November 2024, versus June’s 6.8%. Further, Retail Sales growth also eased to 3.7% YoY during the said month from 4.8% prior. Both these figures trailed market forecasts. Additionally, the House Price Index improved, but the Year-To-Date (YTD) Fixed Asset Investment for July flashed the lowest growth since January 2021. The latest statistics raised economic fears surrounding China, by flagging a challenge for the dragon nation to sustain growth amid weak domestic demand and global headwinds.
On a different page, a cautious mood surrounding U.S. President Donald Trump’s meeting with Russian counterpart Vladimir Putin in Alaska, with an aim to establish floor for the Russia-Ukraine ceasefire, jostled the markets. Ahead of his Alaska trip, Trump said he wants a deal with Russia and believes Putin will agree, citing potential economic incentives and penalties.
Also read: Market Digest: Bitcoin Dips to 118K as Strong Inflation Shakes Rate-Cut Hopes
Crypto, Equity Update
U.S. Treasury Secretary Scott Bessent revealed that confiscated Bitcoin will form the Strategic Bitcoin Reserve under President Trump’s March executive order. He clarified that the U.S. will not purchase Bitcoin directly from the market but will rely on seized assets, which in turn weighed on cryptocurrency sentiment after major coins refreshed multi-month highs. However, a softer U.S. Dollar and mixed sentiment allowed cryptocurrencies to consolidate losses on Friday, despite lacking upside momentum.
Among major news, Cathie Wood’s Ark Invest invested $177 million into cryptocurrency exchange Bullish shares following strong listing gains. Ark Invest bought 2,532,693 shares on Wednesday through three exchange-traded funds (ETFs), signaling strong market interest in crypto-themed stocks.
Read here: Cathie Wood’s Ark Invest Snaps Up $177M in Bullish Shares After Explosive IPO
Elsewhere, U.S.-based equity tokenization firm Dinari has rolled out a Layer-1 blockchain network built on the Avalanche platform. This boosted the AVAX prices to over 8%, before the quote’s retreat to $24.50, up 3.5% at the press time.
Also read: Dinari rolls out Avalanche-powered network for tokenized U.S. stocks
Further, global asset management company BlackRock marked a stellar addition to their Bitcoin (BTC) and Ethereum (ETH) ETFs as prices eased on Thursday, per the FxEmpire. The news reports that BlackRock’s iShares Bitcoin Trust (IBIT) took in $523.7 million on Aug. 14, while its iShares Ethereum Trust (ETHA) drew $519.7 million.
Additionally, Hong Kong’s Securities and Futures Commission (SFC) introduced new custody requirements for licensed Virtual Asset Trading Platforms (VATPs), tightening standards to better safeguard client assets amid rising global cybersecurity threats.
The U.S. Treasury and State Department offered a $6 million bounty for information on leaders of Russian crypto exchange Garantex, now rebranded as Grinex. The move exposed a $96 billion shadow economy linked to ransomware, sanctions evasion, and the ruble-backed token A7A5, with Garantex’s leaders accused of laundering over $100 million for cybercriminals.
Elsewhere, the U.S. equities traded mixed on Thursday, paused the previous two-day winning streak, but the S&P 500 closed at a record top. While tracing the same, the Asia-Pacific shares also dribbled with upbeat Japan markets contrasting with Hong Kong’s losses. Still, European and British shares drifted lower. That said, Wall Street begins Friday’s trading with mild losses of the S&P 500 and Nasdaq, as well as the modest gains of the Dow Jones.
- Gold remains lackluster around $3,335, after snapping a two-day winning streak the previous day.
- Bitcoin (BTC) consolidates Thursday’s heavy losses, up 0.60%intraday to $119,100 by the press time.
- Ethereum (ETH) remains mildly bid, around $4,570, after stalling a two-day winning streak and reversing from the multi-year high on Thursday.
- U.S. Dollar Index (DXY) drops to 97.80, reversing the previous day’s rebound and eyeing the consecutive second weekly loss.
- Wall Street Benchmarks Remain Dicey: U.S. equities trade mixed, carrying Thursday’s indecision, even as S&P 500 refreshed its record top and the Nasdaq flirts with an all-time high (ATH).
- WTI Crude Oil retreats, reversing the previous day’s rebound from a two-month low, while declining to $63.30 as we write.
Risk Catalysts Eyed…
Moving on, mixed U.S. data ahead of next week’s Jackson Hole Symposium, where global central bankers, including Federal Reserve Chair Jerome Powell, are set to speak, adds uncertainty to the markets. This could allow the U.S. Dollar to reduce weekly losses, though the recovery may remain weak.
On the geopolitical front, a positive Trump–Putin meeting outcome could push crude oil lower and lift riskier assets such as equities and cryptocurrencies, while its effect on the Dollar is unclear. A surprisingly strong result might also pause gold’s decline, though this seems unlikely at this stage.
