Markets brace for Fed signals as Bitcoin holds near $79,420

U.S. stock futures traded higher after a mixed Monday, as investors prepared for Federal Reserve Chairman Warsh’s comments at the Jackson Hole economic summit later this week and Wednesday’s Core PCE Price Index, the Fed’s most heavily weighted inflation gauge. The data could influence whether interest rates remain at 3.50% to 3.75% or take a different path, while August non-farm payrolls and consumer and producer price data due in early September could provide the final information supporting a rate hike. On Monday, the Dow Jones Industrials rose 0.26% to 53,417, while the Russell 2000 fell 0.76% to 2,995, the Nasdaq declined 0.77% to 25,980 and the S&P 500 slipped 0.28% to 7,652. Treasury yields declined across most maturities after Secretary Bessent said the Treasury General Account could provide up to $1 trillion to supplement purchases of long-term Treasury debt and help lower overall interest rates. The 30-year bond yield fell 4 basis points to 5.24%, and the 10-year note yield dropped 3 basis points to 4.70%. Brent crude fell 2.47% to $92.06 and West Texas Intermediate declined 2.30% to $85.06 after the Treasury expanded worldwide economic sanctions against Iran without targeting Chinese banks. Natural gas was nearly flat at $2.77, down 0.14%. Gold rose 1.11% to $4,653, supported by concerns about growing U.S. debt, a weaker dollar and geopolitical tensions, while silver was last seen at $68.74 and was also reported as closing at $68.70 with a modest decline. Bitcoin’s short squeeze rally continued, with the cryptocurrency up more than 20% over the last month and trading in a $77,000-$80,000 range. At 8 a.m. EDT, Bitcoin traded at $79,420 and Ethereum at $2,483. Wall Street research actions included upgrades for Advanced Micro Devices, Bread Financial Holdings, Dynatrace, Moderna and Shift4 Payments; downgrades for Fidelity National Information Services, Five Below, Klarna Group, Nutrien and RLI; and new coverage on Carlisle Companies, Eagle Materials, Fortune Brands, Jersey Mike’s Subs and Sherwin-Williams Company. No single analyst report should be the sole basis for buying or selling a stock.

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