Summary
- Market roundup for Tuesday highlights trading indecision as Ukraine-Russia news came in mixed and Fed-linked worries escalate.
- Bitcoin drops over 2%, Gold edges lower, and the U.S. Dollar stays defensive.
- Stablecoin progress and industry moves show promise, yet cryptocurrencies remain under pressure.
- Ukraine, EU praise U.S. meddling to stop the war while pushing for security, Russia stands tough to challenge optimism.
- Home Depot earnings, U.S. housing data came in mixed; with no major events ahead, risk news will drive intraday market moves.
Market Roundup for Tuesday: Cautious Mood Prevails
Market sentiment remains dicey early Tuesday morning in New York as traders face mixed headlines surrounding the Ukraine-Russia peace deal. Adding to the tension, investors are wary ahead of the Federal Open Market Committee (FOMC) Minutes and the annual Jackson Hole summit of global central bankers.
The White House talks, including European Union leaders, Ukrainian President Volodymyr Zelenskyy, U.S. President Donald Trump, and NATO (North Atlantic Treaty Organization) Secretary General Mark Rutte, marked ongoing diplomatic engagement to push back the pessimists. The leaders discussed U.S. security guarantees and NATO’s Article 5 security while showing readiness for the Putin-Zelensky meeting.
A potential trilateral summit between the U.S., the European Union, and Russia remains under consideration, though there is no confirmation yet.
Chatter grew that Putin demands keeping control of the seized Ukrainian territories and is unlikely to accept firm U.S. security guarantees.
Trump stated, “We will try to work out a trilateral with the U.S., Ukraine, and Russia,” adding that he aims to stop the war, not extend it. The U.S. leader recently said on Fox News, “Hope Putin will be good, if not, a rough situation”.
The Kremlin also confirmed that the Trump-Putin call centered on Ukraine and ongoing cooperation.
On another topic, Trump warned that the remaining hostages would only return after Hamas is destroyed, sparking renewed concerns of further conflict.
Elsewhere, global credit rating agency Standard & Poor’s (S&P) kept the U.S. sovereign credit rating at AA+/A-1+ with a stable outlook. The rating giant noted steady but elevated deficits while projecting a slower U.S. growth in 2025 and 2026.
Talking about the U.S. data, the National Association of Home Builders (NAHB) Housing Market Index fell to 32 from 34, the lowest since December 2022 and the third lowest since 2012. Additionally, the U.S. Building Permits for July eased, but Housing Starts improved for the said month.
Crypto, Equity Update
Among key crypto headlines, the official launch of the $USD1 stablecoin on JustLend drew attention. Meanwhile, Wyoming made history as the first U.S. state to issue its own stablecoin — the Frontier Stable Token ($FRNT).
Also important were statements praising the stablecoins from U.S. Treasury Secretary Scott Bessent, as he said that stablecoins hold the power to “unlock financial access for billions worldwide.”
Read Details: Japan’s First Yen-backed Stablecoin set for Approval, Issued by JPYC
Meanwhile, the Illinois governor signed two crypto bills with an aim to protect market participants, while also criticizing the Trump administration, terming them “crypto bros”, for shaping federal policy. The new laws introduce regulatory oversight for exchanges, enforce cybersecurity standards, and add anti-fraud protections for digital asset users.
On the same line, South Korea ordered crypto exchanges to suspend all lending services until new regulatory guidelines are in place. The Asian nation’s abrupt action kept the crypto traders on edge.
Furthermore, news of the global asset manager BlackRock’s transaction to sell $68.7 million worth of Bitcoin could favor sellers, but a lack of major ripple effects and cautious mood tamed crypto’s downside.
In company-specific news, shares of Bitcoin minter TeraWulf jumped 4%, up 45% since last week, as Google increased its stake in the firm from 4% to 18% and became the largest shareholder.
Also read: TeraWulf Stock Gains 4% as Google Expands Stake and Becomes Largest Shareholder
In U.S. equities, Home Depot — an 8% weight in the Dow Jones — raised concerns after missing EPS and revenue estimates in its pre-market report, signaling weakness in the retail sector.
SoftBank’s $2 billion investment in Intel and supportive comments from U.S. Commerce Secretary Howard Lutnick (“We want Intel to be successful in America”) helped stabilize market sentiment. Against this backdrop, the Dow Jones posts mild gains, while the S&P 500 and Nasdaq slip modestly in early Tuesday trading.
Latest Moves of Key Assets
- Gold prints mild losses at two-week low, down 0.30% intraday to $3,323.
- Bitcoin (BTC) drops nearly 2.0%, reporting a two-week low near $114K at the latest.
- Ethereum (ETH) slips 2.5%, around $4,200, down for the second straight day at the press time.
- U.S. Dollar Index (DXY) remains defensive near 98.10, struggling to extend the previous day’s gains.
- Wall Street Benchmarks Trade Mixed: U.S. equities trade mixed, carrying Monday’s indecision, with the S&P 500 and Nasdaq facing modest losses, but the Dow Jones rising 0.30% intraday by press time.
- WTI Crude Oil remains pressured, posting mild losses around $62.10, after hitting the lowest level since early June the previous day.
Risk news eyed…
Having witnessed the majority of the scheduled data releases for Tuesday, anticipation around the Jackson Hole symposium and developments in the Russia-Ukraine peace talks could drive markets. This might escalate anxiety ahead of Wednesday’s FOMC Minutes, Thursday’s August Purchasing Managers’ Index (PMI) reports from major economies, and Friday’s speech by Federal Reserve Chair Jerome Powell.
The cautious markets may help the traditional havens, like gold, to recover, but the U.S. Dollar could face a lack of clarity amid Fed concerns and unimpressive retail earnings at home. Meanwhile, cryptocurrencies remain under pressure, weighed down by technical weakness and leveraged position liquidations as traders brace for high-impact events.
Also read: Market Digest: Bitcoin Slips to 115K as Trump–Zelenskyy Talks Stir Uncertainty
