U.S. equities reached another record high yesterday, buoyed by Chair Jerome Powell’s optimistic comments about the economy. The S&P 500 closed up 0.61% at 6,086 points, while the Nasdaq gained 1.24%, finishing at 21,492 points. Powell stated that the U.S. economy is in “remarkably good shape” and expressed confidence in the current monetary policy stance. This suggests a likely 25 basis point cut in two weeks, followed by a pause in January, contingent on macroeconomic conditions. Notably, the U.S. ISM data released yesterday indicated softer readings.
In France, President Emmanuel Macron is seeking a new Prime Minister after his three-month-old government lost a non-confidence vote related to a budget proposal that failed to satisfy Marine Le Pen and the far-right opposition. The euro is trading at 1.05, with the CAC 40 index at 7,290 points.
On the cryptocurrency front, Bitcoin is once again approaching the $100,000 mark following Trump’s nomination of crypto-friendly Paul Atkins to replace SEC Chair Gary Gensler. The total cryptocurrency market capitalization stands at approximately $3.7 trillion, with Bitcoin comprising over 50% of that at around $1.9 trillion. Similar to trends in the U.S. equity market, concentration remains significant in crypto assets. Analysts expect continued upward momentum, with Ethereum potentially reaching between $4,000 and $5,000, and Ripple aiming to revisit its previous high of $3.50.