U.S. economic data turned bad, and U.S. stocks fell again like a roller coaster from the previous day's surge, while government bonds, gold, and crude oil rose. Hamas political leader Haniya was killed in an attack in Iran, triggering tensions in the Middle East. Bitcoin fell back to $62,302 yesterday as US stocks fell, but then slowly climbed back above 65K.
Table of contents
ToggleU.S. economic data raises concerns
Data released on Thursday (8/1) suggested that U.S. economic conditions are deteriorating. The number of people claiming job benefits surged to 249,000 in the week ended July 27, well above expectations of 235,000. Continuing claims also rose to the highest level since November 2021.
The ISM manufacturing index was 46.8, well below the forecast of 48.9. A value below 50 indicates a contraction in economic activity in the sector.
Treasuries, gold, crude oil rise
The U.S. 10-year Treasury bond yield was at 3.981%, falling below 4% for the first time since February. Yields and prices move in opposite directions, not only digesting Federal Reserve Chairman Powell's dovish remarks about a possible interest rate cut in September, but also reflecting people's psychology about economic recession and tensions in the Middle East.
( Powell announced a rate cut in September, U.S. stocks soared, and Bitcoin fell to 64K )
Gold prices continued their gains, reaching a record high of 2,482.29 during the session, as the market became increasingly optimistic about the Federal Reserve's interest rate cut in September, and a weak US dollar boosted demand.
Oil prices rose on Wednesday after the assassination of Hamas political leader Haniyeh in Tehran, Iran, heightened the risk of war in the Middle East, although weak U.S. economic data yesterday eased the gains slightly.
Bitcoin slowly rises back above 65K
Bitcoin fell back to $62,302 yesterday as US stocks fell, but then slowly climbed back above 65K.
