Stock Market to Push for Another Round of Highs as Fed Reaffirms a Rate Cut, Bitcoin Unaffected

  • Fed Chairman, Jerome Powell boosts investors' confidence in a rate cut coming later this month
  • Bitcoin takes a breather while altcoins show green colors

The Dow Jones and S&P 500 made a new all-time high on Thursday after Federal Reserve Chairman Jerome Powell shored up hopes for an interest rate cut later this month.

The Dow closed at 27,088 points, topping 27,000 for the first time while the S&P 500 surpassed the record set on July 3.

This boost in the stock market was driven by the remarks from Powell who told Congress that persistently low inflations and uncertainty around trade policy and global economic outlook were reasons to consider easing policy, despite economic and job growth remaining strong.

Powell’s testimony affirms investors’ expectation that the central bank will move to cut interest rates next month when policymakers will meet again.

US equity futures climbed alongside stocks in Europe while bonds fell across the eurozone as investors clung to their optimism on prospects for easier monetary policy. Shares meanwhile, dropped in Japan and Australia and registered modest gains in China, Hong Kong, and South Korea.

Meanwhile, weak data registered in both Singapore and China after President Donald Trump complained that China has not increased the purchase of American farm products.

As Fed bolsters investors’ expectations for a rate cut, stock-index futures indicate Wall Street could further attempt to push the record gains further upside.

Meanwhile Bitcoin on a Rest

While the Fed has boosted the stock prices, Bitcoin is currently trading around $11,600 after surging over 200 percent in 2019, till date.

The leading cryptocurrency has been on a tear throughout the second quarter of 2019. Moving into the third quarter, BTC has taken a breather, with 7 days change of 4.40 percent.

As Bitcoin takes a rest, altcoins are showing their green colors. Top 30 cryptocurrencies are now in the green up to 12 percent, enjoying Bitcoin trading sideways.

BTC price might be on rest, but it is currently enjoying the attention from Powell who compares it with gold, calling it a “store of value” and Trump mentioning BTC on Twitter.

The crypto community is ecstatic, seeing the crypto advertisement made by the officials, calling this “wildly” bullish for Bitcoin.

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