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US equity indices posted their strongest one-day rally since March after consumer sentiment data surprised to the upside. The S&P 500 climbed confidently, recouping recent losses, and the Dow Jones closed above the 50,000 mark for the first time in its history. The improvement in sentiment supported risk appetite, especially in blue-chip names, but the market remained sensitive to macroeconomic signals.
Goldman Sachs, however, points to continued selling by hedge funds and warns that the current recovery may be corrective. Key sources of uncertainty are inflation, the path of interest rates, and economic releases due next week. Against this backdrop, Morgan Stanley takes a more constructive stance, flagging potential entry points — primarily in the tech sector, which could benefit if monetary policy expectations stabilize. Follow the link for more details.
The US currency remains on the defensive amid growing concerns about the Federal Reserve's independence and rising expectations of interest rate cuts in 2026. The US dollar index is losing support as investors become more cautious about the outlook for current monetary policy and possible political pressure on the regulator over the medium term.
A further risk for the dollar would be weak labor market data. If jobs data confirms a cooling economy, that would strengthen expectations for Fed easing and put additional pressure on the currency. In this configuration, the FX market remains highly sensitive to macroeconomic surprises and to commentary from policymakers. Follow the link for more details.
Bitcoin is attempting to stabilize after a marked decline, but the recovery has been uneven. The cryptocurrency continues to show a strong correlation with tech stocks, leaving it vulnerable to swings in the US equity market. Elevated volatility and thinning market depth increase participant nervousness and limit appetite for aggressive longs.
Investors are watching overall risk appetite and signals from monetary authorities. Additional uncertainty stems from the new Fed leadership and its potential approach to financial conditions. As a result, Bitcoin remains in search of a stable footing, and short-term dynamics will largely depend on the behaviour of US equities and the macro backdrop. In this market configuration, attention is shifting to short-term moves that traders increasingly execute using tools available at InstaForex. Follow the link for more details.
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