Daily Market Recap: Fed Holds Rates, Gold Hits Record, Bitcoin Breaks $86K

The Federal Reserve’s decision to keep interest rates unchanged sent shockwaves through global markets, leading to a stock market rally, gold surging to record highs, and Bitcoin climbing past $86,800. While the Fed maintained its outlook for two rate cuts in 2025, concerns over inflation and trade tensions kept investors on edge.

Key Market Highlights:

📈 Stock Markets Rally:

S&P 500 +1.08%, Nasdaq +1.41%, Dow +0.92% following the Fed’s steady stance.
European markets were mixed, with France’s CAC 40 gaining 0.7%, while Germany’s DAX slipped 0.4% due to trade concerns.

💰 Bitcoin & Gold Surge:

BTC/USD soared past $86,800, riding the wave of dovish Fed sentiment and increased risk appetite.
Gold (XAU/USD) hit an all-time high of $3,052, benefiting from safe-haven demand amid global economic uncertainties.

💵 Dollar Weakens Post-Fed:

USD/JPY spiked to 150.00 before retreating to 149.00 after Powell’s cautious remarks on inflation and trade risks.
EUR/USD fell to 1.0859 but rebounded to 1.0900 after Powell downplayed immediate rate hike concerns.

🛢️ Oil Holds Steady:

WTI Crude traded near $67 despite a rise in EIA inventories (+1.7M barrels).
Market focus remains on China’s demand outlook and ongoing geopolitical tensions.

Upcoming Market Movers to Watch:

📊 Key Data Releases:

Switzerland Trade Balance
Germany Producer Price Index (PPI)
U.K. Labor Market Data & BOE Rate Decision
U.S. Jobless Claims & Philly Fed Manufacturing Index
Japan Core CPI Report

💡 What’s Next?
Traders are bracing for major central bank decisions and economic updates that could dictate the next market direction. Will the dollar regain strength, or will Bitcoin and gold continue their explosive rally? Stay tuned! 🚀

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Hamza Shah