The correction in the US equity market, driven by a stronger dollar and rising Treasury yields following robust US labor market data, is spreading across global financial markets. The move is weighing on Bitcoin and triggering profit-taking in technology stocks, with semiconductor companies and memory-chip suppliers leading the declines. Nasdaq 100 futures have already fallen by roughly 1,000 points from their record highs, and selling momentum accelerated after the cash market open.
- A strong Non-Farm Payrolls (NFP) report boosted expectations that the Federal Reserve could still raise interest rates later this year, given a resilient labor market and persistently elevated inflation. Markets are now fully pricing in a rate hike by year-end, despite Donald Trump continuing to call for rate cuts.
- The S&P 500 is at risk of ending its historic winning streak. The benchmark index is attempting to secure a tenth consecutive positive week, which would mark its longest such run since 1985.
- Yesterday’s earnings report from Broadcom dealt a blow to the AI sector. The company’s shares continued to decline on Friday, while selling pressure spread across the broader semiconductor industry.
- Wall Street sentiment is also being weighed down by the fragile ceasefire between the United States and Iran, alongside reports that negotiations have stalled.
- According to Mercuria, shortages of marine fuel could leave as much as 10% of the global shipping fleet idle. The closure of the Strait of Hormuz has effectively removed around 14 million barrels of crude oil per day from the global energy market.
- Prices for low-sulfur marine fuel in Singapore surged by as much as 134% during the conflict, although gains have since moderated to approximately 55%.
- Brent and WTI crude oil prices have risen by roughly 40% since the outbreak of the conflict, while refined product markets are facing even greater pressure, creating uncertainty around the sustainability of further price increases.
- Hawkish US economic data and fading expectations for monetary easing are weighing on Bitcoin, which is testing the $60,000 level today—a price not seen since the depths of February’s market panic.
Bitcoin vs. US100 (H1)
Source: xStation5
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