3 Key Updates: What’s Happening in the Markets Today?

Less Euphoric Markets Today

Today, markets are less euphoric with Asia dampening the sentiment.
Asian stocks have slipped, while the dollar remained steady as investors await the minutes from the Federal Reserve’s latest policy meeting (tomorrow) to assess the timing and extent of potential interest rate cuts this year.

Nvidia in Focus

All eyes are on Nvidia, one of the leading companies fueling the frenzy of artificial intelligence, and what the company’s earnings on Wednesday will reveal about the sector’s growth.

Gold and Crude Oil

Gold is slowly edging back towards Monday’s historic peak, while crude oil prices have decreased due to concerns that U.S.
interest rates may stay high for longer.
This comes as Fed officials have maintained a cautious view on a recent easing of inflation.

Within this context, three factors are under investors’ scrutiny today.

Crypto Momentum

Cryptocurrency prices have surged following positive signals towards the approval by the United States of ETFs investing directly in the second-largest token, Ether.
This marks a shift from a more pessimistic outlook last week.

According to market experts, the approval of spot ETFs on Ether in the U.S.
will signal the adoption of the entire altcoin sector, acting as a significant bullish factor.
Bitcoin has risen to $71,957, and Ether has soared to $3,720.80, both reaching levels not seen since April 9.
Analyst Sycamore from IG predicts that Bitcoin will test the all-time high of $73,803.25 in the coming days before pushing towards $80,000.

Fed Expectations

Markets are currently pricing in around 41 basis points of rate cuts by the Fed this year, with a quarter-point cut fully priced in for November.
Traders have rushed to rebuild bets on easing after early-month data showed that consumer price pressures eased in April, following three months of upside surprises at the beginning of the year.

Nevertheless, Fed officials are still reluctant to declare that inflation is coming back under control.
Vice President Philip Jefferson stated on Monday that it was too early to say whether the slowdown is truly “long-lasting,” while Vice President Michael Barr underscored the need for a more restrictive policy for longer.

China

In Asia, China’s economic challenges remain in the spotlight, with new data showing few signs of a turnaround in its debt-ridden real estate sector.
Local governments saw their lowest revenues in eight years from land sales last month, highlighting the fiscal strains they face as they depend on such revenues for a significant portion of their total income.