Summary
- Market roundup for Tuesday portrays mixed U.S. data, firmer Dollar, and sour sentiment after a long weekend in New York.
- Bitcoin rises past $111K, Gold refreshes ATH while U.S. Dollar stalls five-day losing streak.
- U.S. ISM Manufacturing PMI for August missed upbeat forecasts, but improved from July.
- Challenges to Trump’s tariffs, Cook-Trump legal showdown and debate over Fed independence weigh on risk profile.
- Traders also stay cautious ahead of Friday’s U.S. Nonfarm Payrolls (NFP) after last month’s controversial release.
- Crypto industry news is mostly upbeat, while equities begin the week with losses.
Market Roundup for Tuesday: Risk Aversion Welcomes U.S. Traders After A Long Weekend
Global markets portray sour sentiment amid mixed U.S. data, political headlines, and caution ahead of the key late-week releases. Recently, the U.S. ISM Manufacturing PMI for August and headlines surrounding U.S. President Donald Trump gained major attention.
Against this backdrop, Bitcoin (BTC) extends Monday’s recovery moves past $111K, up over 1.0% intraday near $111,100 by the press time. The spot Gold (XAU) also renews its all-time high (ATH) around $3,515, even as the U.S. Dollar Index (DXY) prints the first daily gain in six, near 98.15 at the latest.
U.S. ISM Manufacturing PMI for August came in at 48.7, missing the 49.0 forecast, but above July’s 48.0 reading. Further, the details suggest that the employment and new orders were improving while prices paid indicate easing inflation pressure. Following the report, the U.S. Dollar Index (DXY) pared intraday gains, but still kept its first daily rise in six sessions, reflecting cautious market sentiment.
Elsewhere, U.S. President Donald Trump and his team are ready to challenge a U.S. court’s decision that deemed Trump’s use of national emergency powers to impose heavy tariffs as illegal. This news eased market fears of further tariff escalations.
Meanwhile, U.S. Treasury Secretary Scott Bassent expressed confidence that the U.S. Supreme Court will not overturn Trump’s tariffs. He also criticized the U.S. Federal Reserve (Fed) but emphasized its independence, adding that it was surprising the Fed hadn’t independently reviewed allegations against Fed official Cook.
Bassent further stated that if the allegations were true, Cook should be removed, noting that she hadn’t denied them. He also dismissed claims that President Trump pressured the Fed.
At the Shanghai Cooperation Organization (SCO) summit, China’s President Xi Jinping and Russia’s President Vladimir Putin presented a united front, as well as showed readiness to strengthen their ties with India, likely as a counter to the U.S.
On a similar note, the BRICS nations (Brazil, Russia, India, China, and South Africa) announced plans to settle trade in Indian Rupees (INR) for the first time. While not a major issue, this move challenges the U.S. Dollar’s status as the global reserve currency and raises concerns in the market.
Meanwhile, developments surrounding the Russia-Ukraine peace talks are almost absent as both parties seem busy with the fresh military attacks on each other, while the European Union (EU) tries to be harsh on Russia, and the U.S. plays a diplomatic role.
Crypto, Equity Update
Most major cryptocurrencies extend Monday’s recovery despite a stronger U.S. Dollar, supported by upbeat industry news and month-start positioning, with U.S. traders returning after the Labor Day holiday.
Some of the top crypto news are as follow, while more updates like this could be traced to our Crypto Bytes.
Among the top crypto news, the Ethereum Foundation’s planned Holesky Testnet shutdown gained major attention. That said, technical challenges and a successful launch of the Hoodi testnet were cited as the key catalysts for ending Ethereum’s largest public testnet.
Read details here: Ethereum Announces Planned Holesky Testnet Shutdown
In related news to Ethereum (ETH), one of the world’s biggest corporate ETH holder, SharpLink Gaming, increased its crypto Treasury, holding around 837,230 ETH (worth ~$3.6B) per the latest officials release.
On the other hand, top crypto exchanges like Coinbase and OKX enter Australia’s $2.8 trillion pension market, offering services for Self-Managed Super Funds (SMSFs) to bring digital assets into mainstream retirement investing.
Also read: Crypto Pension: Coinbase, OKX Target Australia’s Massive $2.8T Retirements Pot
Meanwhile, a Japanese cryptocurrency exchange, CoinCheck, whose holding company (CNCK) made its Nasdaq debut last year, took over French-regulated digital asset prime broking Aplo to foray into the European markets.
Further, Japan Post Bank announced plans to launch a digital yen by the end of fiscal 2026, offering easier access to digital transactions. The bank, managing around ¥190 trillion ($1.29 trillion) in deposits and partly owned by the Japanese government, will introduce DCJPY, a blockchain-based currency developed by DeCurret DCP.
On the same line, rumors surrounding Bank of China’s application for a stablecoin license fuelled the Chinese bank’s stock in the Hong Kong markets.
Notably, the Trump family-linked World Liberty Financial (WLFI) token witnessed a steep selling pressure on the first day of the 24.67 billion supply launch. Following the sell-off, the WLFI proposed using liquidity fees for the 100% buyback and burn of the tokens.
More here: Trump-Linked WLFI Goes Live With 24.67B Supply, Faces Instant Sell-Off
Talking about the U.S. equities, Wall Street began the week’s trading in the red, with all three benchmarks extending Friday’s losses. That said, Nasdaq and S&P 500 both drop over 1.0% intraday, and the Dow Jones Industrial Average is falling 0.90% on the day as we write.
The downbeat sentiment could be linked to broad financial market uncertainty and concerns over China’s push for self-reliance in Artificial Intelligence (AI) infrastructure instead of relying on U.S. technologies. Adding to selling pressure is a caution ahead of top-tier U.S. earnings reports from Broadcom Inc. and Salesforce Inc., due on Wednesday and Thursday, respectively, as well as Friday’s U.S. monthly employment report.
- Gold refreshes ATH, up for the sixth consecutive day with 1.09% intraday gains to $3,515 as we write.
- Bitcoin (BTC) holds recovery from a two-month low, rising over 1.0% on the day to $111,100 at the latest.
- Ethereum (ETH) struggles to regain upside momentum, mildly bid near $4,330 by press time.
- U.S. Dollar Index (DXY) snaps a five-day losing streak, up 0.50% intraday to 98.15 at the latest.
- Wall Street is in the red, with Nasdaq and S&P 500 down over 1.0%, with Dow Jones losing around 0.90% on the day as we write.
- WTI Crude Oil renews monthly high, up over 2.0% intraday to $65.35 while reversing the previous day’s loss and adding some more gains.
Risk catalysts eyed…
Having witnessed the initial moves linked to the U.S. data, the market’s reactions to recent trade and geopolitical news could help the USD maintain its latest rebound, putting pressure on risk assets like equities and cryptocurrencies. However, gold may still target the $3,550 level, the 78.6% Fibonacci extension from its April-May moves, unless it falls back below the $3,482 resistance-turned-support.
In addition, the legal battle between Trump and Cook, Trump’s challenge to the court’s ruling on tariffs, Russia-Ukraine tensions, and discussions about Fed independence could grab attention. Dovish bets on the Fed may test USD bulls, but they are likely to remain in control ahead of Friday’s crucial U.S. employment report.
