US Market News Digest for December 7

[Ben Graham]

Investor optimism rises amid S&P 500 growth and expectations of Fed policy easing

Investor sentiment remains confidently optimistic, bolstered by the strong growth season for the S&P 500 index, which is supported by expectations of an imminent reduction in Federal Reserve interest rates. Positive forecasts for corporate earnings provide a foundation for a continued upward trend in the stock market. Despite lingering recession risks, market participants note an improvement in macroeconomic conditions and reduced inflationary pressure, increasing the likelihood of the regulator shifting to a softer policy in the coming months.

However, the index's further growth has been capped by short-term profit-taking. Investors are hesitant to increase risk before the upcoming FOMC meeting, which could set a new direction for the market. This caution has led to a moderate correction, yet the overall sentiment remains positive due to the combination of a robust US economy and expectations for rate cuts. Follow the link for more details.

Bitcoin loses correlation with US stock market

Bitcoin has lost 3% since the beginning of the year, showing a noticeable divergence from the performance of the US stock market, where the S&P 500 index has risen by 16% over the same period. This divergence has sparked discussions among analysts: whereas the crypto market often correlated with high-tech stocks in the past, BTC is now feeling pressure from regulatory news and a decrease in interest from major institutional players. Volatility in the crypto market has increased, raising additional doubts about the sustainability of its short-term dynamics.

Nevertheless, many market participants believe that this gap may be temporary. If the Fed's monetary policy easing continues and liquidity improves, the likelihood of a reconnection between BTC and American indices will increase. Investors note that Bitcoin often catches up with the stock market after periods of desynchronization; if macroeconomic conditions become more favorable, the cryptocurrency could once again synchronize with the upward trend of US equities. Follow the link for more details.

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