Markets Await Fed Decision: Bitcoin Spikes, Gold Drops, Stocks Wobble

CN
1 day ago

Though benchmark indices flirted with record levels in the morning, stocks became somewhat erratic as the afternoon wore on. Of the major players—Russell 2000, S&P 500, Dow Jones, and Nasdaq—only the Russell 2000 and Nasdaq managed an slight uptick by 3 p.m. ET on Tuesday. These Wall Street fluctuations came just ahead of Wednesday’s much-anticipated Federal Open Market Committee (FOMC) meeting.

At this moment, the CME’s Fedwatch tool indicates a 37% likelihood of a 25-basis-point (bps) rate cut, while the odds for a more substantial 50bps reduction stand at 63%. With such close numbers, it’s shaping up to be a real nail-biter. Over on Polymarket, bettors place a 44% chance on the smaller cut and a 55% chance on the bigger one. Meanwhile, the probability of a 75bps cut sits at a mere 1%.

Gold lost some shine on Tuesday, sliding 0.58% to about $2,567 per ounce. Silver followed suit, though with a gentler decline of 0.28%, now priced at $30.62 per ounce. After reaching its intraday peak of $61,207, bitcoin slipped below the $61K mark by 3:45 p.m. ET. As of this writing, the flagship cryptocurrency is trading at $60,338, with a market cap hovering around $1.19 trillion. By 3:50 p.m., BTC was under the $60K mark once again at $59,976 per coin.

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