Market Overview
Global markets are focused on this week's policy decisions from the Federal Reserve, Bank of England, and Bank of Japan. Key highlights:
- Dow Jones extended its losing streak to seven days, the longest in four years, while the Nasdaq gained slightly.
- Chip stocks rallied, lifting the Nasdaq for a fourth consecutive week. Broadcom surged 24%, surpassing a $1 trillion market cap, while NVIDIA dropped 2% weekly.
- Tesla rebounded 4%, hitting record highs amid regulatory optimism.
- Bitcoin surpassed $100,000, marking its seventh weekly gain—the longest streak since 2021.
Bitcoin’s Rally Fueled by Pro-Crypto Political Sentiment
Early Monday in Asia, Bitcoin climbed 1% to breach $104,000, eclipsing its previous peak of $103,800. Analysts attribute the surge to:
- Speculation about lighter cryptocurrency regulations under potential U.S. leadership shifts.
- Growing institutional adoption as a hedge against inflation.
Key Events This Week
1. Federal Reserve Rate Decision (Wednesday)
- Expected: A 25-basis-point rate cut, with futures pricing a near 100% probability.
- Outlook: Policymakers may signal caution about further cuts due to economic resilience and upcoming tariff policies.
2. Bank of Japan Policy Meeting (Thursday)
- Consensus: Rates to remain unchanged, with potential hikes delayed until 2025.
- Risks: Prolonged delays could weaken the yen, reigniting carry trades.
3. U.S. Economic Data Releases
- Friday’s PCE Inflation Report: Critical for assessing Fed policy trajectory.
- Q3 GDP Revision (Thursday) and Retail Sales (Tuesday): Will gauge consumer strength.
FAQs
Q: Why did Bitcoin surge past $100,000?
A: Optimism around regulatory easing and institutional demand drove the rally, alongside macroeconomic uncertainty.
Q: How might the Fed’s decision impact markets?
A: A cut could boost risk assets, but forward guidance will be scrutinized for hints about 2025 rate paths.
Q: What’s the outlook for Japan’s economy?
A: With inflation pressures easing, the BOJ faces less urgency to hike, though delays risk yen depreciation.
👉 Bitcoin’s next price target? Experts weigh in
Global Political Developments
- South Korea: President impeached; constitutional court to rule within 180 days.
- U.S. Tech Leaders: Meta, Amazon, and others engage with potential policymakers to shape AI and crypto regulations.
Investment Notes
- Cryptocurrencies: Volatility remains high; consider diversification and risk management.
- Equities: Watch chip stocks and AI-driven sectors for momentum shifts.
Disclaimer: This content is for informational purposes only and not investment advice.