Bitcoin spot ETFs saw modest inflows on August 15th, but this was overshadowed by negative funding rates in the Bitcoin futures market, potentially indicating bearish short-term market sentiment. Ethereum ETFs experienced more significant outflows, with Grayscale Ethereum Trust bearing the brunt of the selling pressure.
The cryptocurrency market is showing signs of stagnation as the US presidential election approaches, with analysts debating whether election odds are the primary driver of market sentiment or if the influence of political outcomes, particularly a Trump victory, has been overstated.
US retail sales rebounded strongly in July, increasing by 1% month-over-month, exceeding expectations and signaling a healthy consumer spending environment. Meanwhile, initial jobless claims fell slightly, indicating a stable labor market. These positive economic indicators have boosted market sentiment, with US index futures trading higher.
Leading cryptocurrencies, including Bitcoin and Ethereum, experienced a surge on Monday as investors anticipated the release of key inflation data. The market sentiment improved, with Bitcoin breaking above $60,000 and Ethereum reaching its highest level since last week’s sell-off. This rally comes ahead of crucial inflation reports that could provide insights into the health of the economy.
The stock market has shifted gears, with good news now driving positive market sentiment. However, investors need to be cautious as the momo crowd, despite recent losses, is still optimistic about upcoming economic data. Prudent investors should consider a protection band with cash and hedges to mitigate risk.
Market sentiment has shifted from ‘buy every dip’ to ‘sell every rip,’ leading to a decline in the Dow Jones Industrial Average. The SPY, an ETF tracking the S&P 500, has also experienced a downturn. Traders using exponential moving averages (EMAs) have detected a trend change, with the 10-day EMA crossing below the 21-day EMA on April 8th, indicating a bearish trend.
The CNN Money Fear and Greed index showed some improvement, but remains in the “Fear” zone. The S&P 500 closed slightly higher, while the Dow Jones and Nasdaq Composite gained marginally. Tesla shares jumped 12% after strong earnings, while Boeing fell 2.9% following financial results. Over 25% of S&P 500 companies have reported quarterly results, with 79% exceeding estimates. Most sectors closed positive, with consumer staples, consumer discretionary, and utilities leading the gains. Dow Jones, S&P 500, and Nasdaq Composite closed with mixed results. Investors await earnings from Caterpillar, Alphabet, Intel, and Microsoft today.
The stock market has experienced volatile intraday swings in recent weeks, continuing the trend today. Despite opening higher, stocks declined due to rising Treasury yields. However, a positive auction for 5-year Treasuries has boosted investor sentiment, lifting the index from its lows. Market volatility is expected to continue, with several major companies scheduled to report earnings after the market closes.
U.S. stocks closed higher on Tuesday, recording gains for the second straight session. The CNN Money Fear and Greed index showed further improvement in the overall market sentiment, while the index remained in the “Fear” zone on Tuesday. The Dow Jones closed higher by around 264 points to 38,503.69, the S&P 500 rose 1.20% at 5,070.55, and the Nasdaq Composite climbed 1.59% at 15,696.64 during Tuesday’s session.
UBS has downgraded its outlook for palladium, predicting a price decline to $900 per ounce by the end of 2024. The shift in sentiment is attributed to a decline in demand for auto catalysts, a surplus in the palladium market, and negative risk assessment by the option market. Investors are advised to proceed with caution due to palladium’s low trading volumes and limited market size.
