Summary
- Wednesday’s market roundup highlights caution as U.S. President stirs trade and geopolitical fears.
- Anxiety around Fed’s next move, despite downbeat data and already given September rate cut, also restricts volatility.
- Bitcoin lacks clear direction, while U.S. Dollar drop as New York trading bell rings.
- McDonald’s delivers strong earnings, Disney falls short on revenue, and crypto drivers stay mixed.
Wednesday’s Market Roundup: Mixed Sentiment Prevails
Market sentiment is weighed down by a mix of U.S. economic data and U.S. President Donald Trump’s trade and political threats. Even so, indecision surrounding the U.S. Federal Reserve’s (Fed) next step, considering the September rate cut is almost given, keeps traders on the edge amid a light economic calendar.
Bitcoin (BTC) remains sidelined around $115K, after snapping a two-day winning streak the previous day, whereas the spot gold (XAU) prints the first daily loss in five around $3,375 at the latest. That said, the US Dollar Index (DXY) prints the first daily loss in three while falling to a week’s low.
The EU-U.S. trade framework talks challenge the bears, but Trump’s recent warnings on tariffs—especially targeting India after a 25% tariff announcement—have kept markets uneasy. Additionally, Trump also targets Brazil with higher tariffs while warning North Korea and Iran over their nuclear ambitions and flagging fears of Israel’s aspirations of taking control of the entire Gaza.
U.S. economic data showed some bright spots, with the S&P Global PMI for July performing well, but the ISM Services PMI came in weaker. The Atlanta Fed raised its Q3 GDP growth estimate to 2.5%. Meanwhile, the U.S. June trade balance improved slightly to -$60.2 billion, better than expected. With these data points, markets now appear sure of a September rate cut and two rate cuts by year-end.
Recently, the White House’s National Economic Advisor, Kevin Hassett, said that Russia sees India as a release valve to sell their stuff. On the other hand, Minneapolis Fed President Neel Kashkari appeared dovish while saying, “(It) may be appropriate in the near term to adjust rates.”
Crypto, Wall Street Update
Crypto markets showed downbeat performance amid mixed global developments. Bitcoin (BTC) seesaws around $114K while Ethereum (ETH) stays pressured near $3,600.
China’s Ministry of State Security issued a warning about the misuse of biometric data in crypto projects. Meanwhile, the U.S. Securities and Exchange Commission (SEC) announced that liquid staking and related tokens are not considered securities, offering relief to Decentralized Finance (DeFi) participants and boosting hopes for more crypto-friendly moves, especially when backed by the Trump administration.
Elsewhere, Galaxy Digital Chief Executive Officer (CEO) Mike Novogratz raised fears of crypto treasury growth hitting its peak. Even so, the public companies now hold nearly 5% of the total Bitcoin (BTC) supply. Furthermore, the United Arab Emirates (UAE) made headlines by fully digitizing the Dirham, reinforcing its push toward becoming a global digital asset hub.
On the other hand, McDonald’s Corporation (MCD) delivered strong quarterly results, but The Walt Disney Company (DIS) disappointed investors by missing revenue forecasts, even with upbeat EPS.
That said, Wall Street closed with minor losses the previous day, pressured by weaker-than-expected U.S. ISM Services PMI and concerns over Advanced Micro Devices’ (AMD) slowing data-center growth, as well as due to downbeat earnings from Super Micro Computer Inc. (SMCI).
Still, cautious optimism around potential U.S. trade agreements with Europe and China joins growing expectations of a Fed rate cut in September, to limit downside pressure. Amid these plays, major U.S. equity benchmarks were seen trading mixed at the start of Wednesday’s trading session.
Also read: Market Digest: Bitcoin Slips below $114 as Trump Targets EU, India, and Brazil
- Gold snaps four-day winning streak, prints mild losses around $3,376 by the press time.
- Bitcoin (BTC) remains indecisive around $115K, after snapping a two-day uptrend the previous day.
- Ethereum (ETH) seesaws near $3,600, even after printing the first daily loss in three the previous day.
- U.S. Dollar Index (DXY) drops to a week’s low, down 0.36% intraday near 98.40 as we write.
- Wall Street Benchmarks Edge Higher: Having witnessed a downbeat closing the previous day, Wall Street benchmarks print minor gains during the initial hours, tracking a slightly upbeat performance of stocks in European shares.
- WTI Crude Oil stalls a four-day losing streak, up 1.32% intraday to $66.00 as we write.
Risk catalysts, Fed talks eyed…
Moving forward, a light calendar could restrict the market moves on Wednesday, allowing traders to extend the latest consolidation in equities and gold while keeping Bitcoin (BTC) on the sidelines. However, key risk catalysts like headlines about the U.S. tariffs, Trump’s political moves, and pressure on the Fed to cut rates will entertain market players. Apart from that, a slew of second-tier central bankers from the U.S. might also add liquidity to the markets.
