Stock market expert Tom Lee from Fundstrat anticipates a significant rally, crediting the Federal Reserve for acquiring additional firepower
In the ever-evolving world of finance, the US stock market is currently exhibiting a unique mix of resilience and caution. The Federal Reserve's stance is shifting towards potential interest rate cuts by the end of 2025, driven by revised down job growth figures for June and July, which indicate a cooling labor market and possible economic slowdown.
July 2025 jobs growth was only 73,000, far below forecasts, with May and June’s figures revised down by a combined 258,000 jobs. This weakening in employment growth is fueling market speculation about slower economic growth ahead. Inflation, however, has held steady, but trade tariffs and price increases exert downward pressure on growth and real purchasing power.
Despite the labor softness, the stock market showed resilience in July, with a 2.3% rise, driven primarily by a handful of large-cap tech stocks like Nvidia. Small-cap stocks remain attractively valued but have yet to gain strong momentum. There is a divergence between equity market optimism and bond market caution, as long-term yields remain elevated amid fiscal concerns.
The Federal Reserve's policy outlook is becoming increasingly inclined towards easing monetary policy due to slower job growth and moderating inflation pressures. Following the downbeat jobs data, futures markets now price in a 42% probability of up to three interest rate cuts by the Fed before the end of 2025. The federal funds rate currently sits at 4.375%, but the prospect of rate cuts reflects expectations that the Fed may prioritize supporting growth amid cooling employment and inflation dynamics.
However, uncertainties around tariffs and inflation remain important factors shaping the trajectory of the US stock market. Upcoming trade tariff implementations, especially from August 7 onward, and political developments may introduce volatility. Investors are closely watching these events alongside Federal Reserve communications for further signals.
In the realm of cryptocurrencies, The Daily Hodl offers sections for Crypto Markets, Guest Post, Press Release, Sponsored Post, and Advertise. Notable events include Galaxy Digital moving $447,000,000 worth of Bitcoin (BTC) to crypto exchanges, Dreamcash beginning the rollout of its trading platform with Hyperliquid integration via waitlist access, and Apu going live for trading on Hyperliquid.
Elsewhere, G Coin is gaining traction in the gaming world, powering the shift from Web 2.0 to Web 3.0 with growing daily utility. Billionaire Ray Dalio suggests that 15% of a portfolio should be in gold or Bitcoin (BTC) for the upcoming money devaluation phase. The Bitcoin price dropped due to the release of a massive crypto report by the White House and the Federal Reserve leaving interest rates unchanged.
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- Investors contemplating various avenues for growing their portfolios might consider altcoins alongside traditional stocks, given the shifting Federal Reserve policy outlook towards easing monetary policy and the potential for up to three interest rate cuts by the end of 2025.
- Amidst the resilience shown by the stock market and the cooling labor market, the crypto exchange landscape is seeing significant developments, such as Galaxy Digital moving a substantial amount of Bitcoin (BTC) to crypto exchanges and new platforms like Dreamcash rolling out their trading platforms with Hyperliquid integration.
- As the US stock market grapples with uncertainties such as trade tariffs and inflation, billionaire Ray Dalio recommends allocating 15% of a portfolio to gold or Bitcoin (BTC), citing the upcoming money devaluation phase as a factor driving this advice. While the Bitcoin price has experienced a drop following a massive crypto report by the White House and the Fed maintaining interest rates, platforms like The Daily Hodl provide updates on Bitcoin, Ethereum, crypto, web 3, and finance to help investors make informed decisions.
