Crypto rallies as markets hold steady ahead of rate decision
Futures point to a firmer open for the ASX 200 after US equities finished largely flat overnight, though the Russell 2000 stood out as it advanced to fresh record highs. Trading sentiment remains subdued, with participants largely on the sidelines ahead of the US Federal Reserve rate decision tomorrow morning, where a 25-basis-point rate cut is broadly expected and already reflected in pricing. The latest JOLTS report showed job openings edging higher, reinforcing signs of labour-market resilience, yet the data did little to alter expectations going into the announcement.
While some commentators suggest a larger 50-basis-point cut is warranted tomorrow, it remains very unlikely. If Fed chair Jerome Powell signals quantitative easing or some short-term liquidity measures, it could push yields lower and drive renewed strength in risk assets. Rate-cut expectations are fuelling momentum across speculative and defensive areas of the market, with Bitcoin and Ethereum moving sharply higher. Crypto-linked equities also rallied, with names including $Circle (CRCL.US)$ , $Strategy (MSTR.US)$ , $Gemini Space Station (GEMI.US)$ and $Coinbase (COIN.US)$ all gaining in the session.
The Russell 2000 hit record highs, showing continuing strong momentum in US small-cap stocks. Its rise reflects growing confidence that lower interest rates ahead will help smaller companies, which are more sensitive to borrowing costs and credit conditions. Some of the notable outperformers within the index included $Bloom Energy (BE.US)$ $Credo Technology (CRDO.US)$ Group and $Fabrinet (FN.US)$ .
Attention is firmly fixed on the Federal Reserve interest rate decision, with trading volume lower overnight, as investors await the news. Tomorrow morning we will also get results from US technology groups $Oracle (ORCL.US)$ $Adobe (ADBE.US)$ and $Synopsys (SNPS.US)$
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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