Latest news with #U.S.FederalReserve
Yahoo
2 hours ago
- Business
- Yahoo
5 Macro Trends Likely to Send Bitcoin and XRP Skyrocketing in 2026
Macroeconomic factors have big implications for Bitcoin and XRP. Five such factors are currently becoming tailwinds for these two coins. Most of these trends will take a couple of years to play out in full. 10 stocks we like better than Bitcoin › Water seeks its own level, and so does money. When cash becomes plentiful in the financial system, scarce digital assets such as Bitcoin (CRYPTO: BTC) and XRP (CRYPTO: XRP) often move sharply higher. Looking toward 2026, there are five macroeconomic forces that appear ready to remove several roadblocks that have held crypto back during the past two years. XRP and Bitcoin are likely to go higher as a result. Here's why each matters. Think of liquidity as the total pool of spendable cash in the global economy. When central banks add money to their respective national financial systems, usually by enlarging their balance sheets, investors have more capital to deploy, and riskier assets like major cryptocurrencies benefit first. And since mid-2024, the total combined assets of the U.S. Federal Reserve, the European Central Bank, and the Bank of Japan have ticked higher for multiple quarters in a row. During the last comparable upswing, from March 2020 to April 2021, Bitcoin leapt 500%, while XRP surged 483%. So if major central banks keep refilling the punch bowl, history suggests another party for crypto prices, assuming nothing spoils the fun. Interest rates set the cost of borrowing money from central banks. Lower borrowing costs make cash cheaper and thus push investors to seek higher-return alternatives to government bonds, including leading digital assets like Bitcoin and XRP. The Fed is now widely anticipated to trim its benchmark interest rate by mid-2026, which implies at least a couple of interest rate cuts in the very near future. In 2019, when the Fed cut rates by almost 1 percentage point, Bitcoin rose 120% in five months, and XRP climbed 17%. That exact performance probably won't be replicated this time around, assuming things proceed as expected. But it will still likely be bullish for these coins. The U.S. Dollar Index is down roughly 8% so far in 2025 as worries over trade tensions and federal deficits mount. A weaker dollar means that global investors need fewer units of their local currency to buy dollar-denominated Bitcoin or XRP, which could have the effect of juicing demand. In 2017, a similar dollar slide that lasted through the start of 2018 preceded a jump in Bitcoin's market cap by a multiple of 13.5, and pushed XRP to rise by a shocking multiple of 34.6. As long as tariffs remain a topic of conversation for the U.S. economy, there could be a tailwind in play here. Government bond yields represent the safest return for investors. The 10-year U.S. Treasury yield has fallen from 4.7% in January 2025 to near 4.3% today. When safe yields drop, the gap between bonds and non-yielding assets such as crypto narrows, making coins more appealing in comparison. After yields slid in late 2018 until shortly after the start of their rapid climb back up in October 2021, Bitcoin's price rose by 572%, and XRP's followed, climbing 84% in the tail end of the period. When people have more disposable income, they invest more, and when they have invested in safe assets sufficiently, they move on to investing in riskier ones like Bitcoin or XRP. Paychecks are stretching a bit further after accounting for inflation recently; average hourly earnings in the U.S. rose 1.4% from March 2024 to March 2025. During the economic stimulus of the 2020 to 2021 period, fresh cash on the sidelines helped power Bitcoin's rise. There's no similarly strong stimulus this time around, but that doesn't change the fact that investors with deeper pockets are more likely to devote some of their money to cryptocurrencies like Bitcoin or XRP. Before you buy stock in Bitcoin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Bitcoin wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $704,676!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $950,198!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Alex Carchidi has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin and XRP. The Motley Fool has a disclosure policy. 5 Macro Trends Likely to Send Bitcoin and XRP Skyrocketing in 2026 was originally published by The Motley Fool
Ammon
7 hours ago
- Business
- Ammon
S&P 500, Nasdaq hit record closing highs amid trade negotiations
Ammon News - Wall Street extended its rally on Friday, sending S&P 500 and Nasdaq to all-time closing highs as trade deal hopes fueled investor risk appetite and economic data helped solidify expectations for rate cuts from the U.S. Federal Reserve. Stocks pared gains after U.S. President Donald Trump terminated trade negotiations with Canada in response to its digital tax on technology companies. Even so, all three major U.S. stock indexes posted weekly gains. Upon reaching its record closing high, the tech-heavy Nasdaq confirmed it entered a bull market when it touched its post "liberation day" trough on April 8. The blue-chip Dow remained 2.7% below its record closing high reached on December 4. The Dow Jones Industrial Average rose 432.43 points, or 1.00%, to 43,819.27, the S&P 500 gained 32.05 points, or 0.52%, to 6,173.07 and the Nasdaq Composite gained 105.55 points, or 0.52%, to 20,273.46. Reuters
Yahoo
a day ago
- Business
- Yahoo
S&P 500, Nasdaq touch record highs after tame inflation data
(Reuters) -The S&P 500 and the Nasdaq opened at record highs on Friday as a benign inflation report supported hopes for a dovish policy outlook from the U.S. Federal Reserve this year. The Dow Jones Industrial Average rose 118.8 points, or 0.27%, at the open to 43505.6. The S&P 500 rose 9.7 points, or 0.16%, at the open to 6150.7, while the Nasdaq Composite rose 49.4 points, or 0.24%, to 20217.264 at the opening bell.
Time of India
a day ago
- Business
- Time of India
Wall Street ends higher on rate cuts, S&P 500, Nasdaq miss record highs
Wall Street closed higher on Thursday, nudging the S&P 500 and the Nasdaq nearer to record closing highs as the Israel-Iran ceasefire continued to hold and a raft of economic indicators appeared to support the case for the U.S. Federal Reserve lowering borrowing costs this year. All three major U.S. stock indexes advanced in a broad rally which placed them on track for weekly gains. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Secure Your Child's Future with Strong English Fluency Planet Spark Learn More Undo The S&P 500 and the Nasdaq are now within a hair's breadth of all-time closing highs, and as the seconds ticked down to the closing bell, it looked as if those records could be reached. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. "Clearly, the pull forward of rate cuts into 2025 is one of the more significant factors" of the market's price action, says Bill Northey, senior investment director at U.S. Bank Wealth Management, Billings, Montana. "Expectations now point to three rate cuts this year." Bank stocks outperformed after the Fed unveiled a proposal to relax its leverage rules, which would ease the capital that big banks are required to hold against relatively low-risk assets. Live Events The S&P 500 banks index advanced 1.6%. "This administration came in promising deregulation," said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky. "And this is not just an example of that, but kind of a signpost that there could be more to come." Richmond Fed President Thomas Barkin cautioned against taking options off the table amid ongoing economic uncertainty, but added that he did not expect tariffs to be "as inflationary as a lot of people worry about." A muted tariff effect could help make the case for a rate cut this fall, according to San Francisco Fed President Mary Daly. Boston Fed President Susan Collins said on Wednesday she's leaning toward a rate cut later this year amid an uncertain economic outlook. These remarks follow Fed Chair Jerome Powell's two-day congressional testimony, at which he reiterated the central bank's wait-and-see policy stance with respect to rate cuts and economic tariff effects. Financial markets are currently pricing in nearly a 21% likelihood of a 25 basis point reduction the Fed Funds target rate at the July Fed meeting, and more than a 75% probability that this year's first rate cut will come in September, according to CME's FedWatch tool. "As we look at economic data , including the labor market, economic activity and price levels, we see that some additional easing is appropriate through the end of this year," Northey added. "The question remains around both magnitude and importantly timing of the first cut." Last week, the Fed released its updated Summary of Economic Projections, which showed policymakers anticipate cutting the key policy rate by about half a percentage point by year-end. A spate of economic data showed first quarter GDP contracted more than previously reported due to weaker than expected consumer spending, while ongoing jobless claims reaching multi-year highs, suggesting potential cracks appearing in the labor market. On the other hand, new orders for durable goods and pending home sales provided robust surprises to the upside. The Dow Jones Industrial Average rose 404.41 points, or 0.94%, to 43,386.84, the S&P 500 gained 48.86 points, or 0.80%, to 6,141.02 and the Nasdaq Composite gained 194.36 points, or 0.97%, to 20,167.91. Among the 11 major sectors of the S&P 500, communication services enjoyed the largest percentage gains, while real estate was the biggest laggard. Micron forecast better-than-expected fourth quarter revenue late Wednesday. Even so, the tech firm's shares dropped 1.0%. Copper prices jumped to a three-month high, boosting miners Freeport-McMoRan FCX.N and Southern Copper SCCO.N by 6.8% and 7.8%, respectively. Advancing issues outnumbered decliners by a 4.76-to-1 ratio on the NYSE. There were 338 new highs and 66 new lows on the NYSE. On the Nasdaq, 3,128 stocks rose and 1,359 fell as advancing issues outnumbered decliners by a 2.3-to-1 ratio. The S&P 500 posted 29 new 52-week highs and 6 new lows while the Nasdaq Composite recorded 79 new highs and 67 new lows. Volume on U.S. exchanges was 16.22 billion shares, compared with the 18.10 billion average for the full session over the last 20 trading days.
Time of India
a day ago
- Business
- Time of India
Stock Market LIVE Updates: Gift Nifty jumps 100 pts, hints at positive start; Asian stocks trade higher
27 Jun 2025 | 07:25:18 AM IST Sensex Today | Stock Market LIVE Updates: Equity markets continued their upward trend on Thursday, reaching a new 2025 peak of 25,565 during the session. Analysts anticipate that this momentum will persist, with the Nifty potentially advancing toward its previous record highs, supported by strong domestic fundamentals and a favorable global backdrop. Sensex Today | Stock Market LIVE Updates: Analysts believe the rally could continue, with no significant resistance expected until the 25,700–25,750 range, suggesting a potential upside of another 150–200 points. On the downside, support is likely around the 25,300–25,350 levels. Oil prices were on track for a weekly decline as the Iran-Israel ceasefire eased concerns about supply disruptions in the Middle East. However, prices edged higher on Friday amid rising fuel demand driven by the start of the U.S. summer driving crude futures increased by 34 cents, or 0.5%, to $68.07 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 33 cents, or 0.51%, to $65.57 a barrel as of 0111 GMT. The euro was little changed at $1.1697 The Japanese yen fell 0.1% to 144.63 per dollar The offshore yuan was little changed at 7.1656 per dollar The Australian dollar was little changed at $0.6552 S&P 500 futures were little changed as of 9:18 a.m. Tokyo time Hang Seng futures were little changed Japan's Topix rose 0.9% Australia's S&P/ASX 200 rose 0.6% Euro Stoxx 50 futures fell 0.2% Wall Street ended higher on Thursday, bringing the S&P 500 and Nasdaq closer to record closing levels as the Israel-Iran ceasefire held steady and a series of economic data reinforced expectations of potential interest rate cuts by the U.S. Federal Reserve this three major U.S. stock indexes posted gains in a broad-based rally, positioning them for a positive finish to the week. Equity markets continued their upward trend on Thursday, reaching a new 2025 peak of 25,565 during the session. Analysts anticipate that this momentum will persist, with the Nifty potentially advancing toward its previous record highs, supported by strong domestic fundamentals and a favorable global backdrop. Read More
