Stocks Rally as Fed Rate Hike Jitters Fade; Gold and Crypto Advance

Market Snapshot

S&P 500 (SPY) — 762.60 (+1.13%) [Twelve Data] · Nasdaq 100 (QQQ) — 716.92 (+1.73%) [Twelve Data] · Dow Jones (DIA) — 518.35 (+0.61%) [Twelve Data] · Gold (GLD) — 398.36 (+1.69%) [Twelve Data] · Silver (SLV) — 58.97 (+3.37%) [Twelve Data] · Bitcoin (BTC) — 77,542.99 (+1.51%) [Binance US] · Ethereum (ETH) — 2,485.45 (+1.75%) [Binance US] · US Oil (USO) — 155.31 (-0.55%) [Twelve Data]

Stock Markets

U.S. equities staged a decisive comeback on Thursday, with the S&P 500 advancing 1.14% to 7,637.76 and the Nasdaq Composite surging 1.69% to 26,418.30, according to the Wall Street Journal. The Dow Jones Industrial Average added 316.14 points, or 0.61%, to close at 51,778.04. The rally reversed Wednesday's sharp selloff that followed the Federal Reserve's decision to raise its benchmark rate by a quarter percentage point—the first increase since 2023.

Crypto Markets

Digital assets rallied alongside equities, with Bitcoin gaining 1.51% to $77,543 and Ethereum advancing 1.75% to $2,485. Solana outperformed with a 6.03% surge to $105.52, while BNB climbed 3.80% to $753.46 and XRP added 1.92% to $1.32. According to CoinDesk, Bitcoin and other major tokens rose as traders looked past the Fed's rate increase, interpreting the quarter-point hike as a manageable headwind rather than a regime shift.

The rally was supported by a landmark regulatory development: the Securities and Exchange Commission on Thursday unveiled a five-year exemption allowing trading venues to offer tokenized stocks and other blockchain-based securities, according to Reuters. The exemption represents a major step toward integrating digital assets into traditional markets and could overhaul equity trading infrastructure. The Wall Street Journal described the decision as clearing a path for authorized trading venues to offer tokenized stocks in the U.S., a move that had been anticipated by the industry for months.

CoinMarketCap noted that altcoins broadly outperformed Bitcoin, with the move driven by a combination of the Fed's perceived dovishness, the SEC's tokenization exemption, and technical breakouts in several tokens. Polkadot rose approximately 4.36% amid the broad crypto rebound, while Uniswap surged 24% on a confluence of altcoin strength, a technical breakout that triggered a short squeeze, and renewed focus on the protocol's fee and value accrual mechanisms. Stacks gained 7.3%, driven by strong demand for a new Bitcoin bond product and general altcoin momentum.

The SEC's tokenization exemption marks a turning point for crypto regulation in the U.S., offering clarity that has eluded the industry for years. However, the failure of the CLARITY Act to pass the Senate before the August recess leaves altcoins and exchanges exposed to potential policy reversals under a future administration, according to CoinMarketCap. Ethereum ETFs saw significant outflows following the CLARITY Act's stall, though ETH's price held above key technical support levels, suggesting underlying demand remains intact.

Stocks Rally as Fed Rate Hike Jitters Fade; Gold and Crypto Advance

Market Snapshot

Stock Markets

Bitcoin Retreats to $76.8K as Binance Reopens Withdrawals; Oil Slides 7%

Gold & Commodities

Oil

Crypto Markets

Macro & Global Drivers

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