US stocks on a rollercoaster ride, concerns over economy and Middle East situation, Bitcoin rebounds to 65K

U.S. economic data deteriorated, causing the stock market to plummet after a sharp rise the previous day. Bonds, gold, and oil prices rose. Hamas political leader Haniyeh was killed in an attack in Iran, heightening tensions in the Middle East. Bitcoin fell to $62,302 yesterday following the drop in U.S. stocks, but later slowly climbed back above $65K.

US Economic Data Sparks Concerns

The data released on Thursday, 8/1 suggests a deteriorating economic situation in the United States. As of the week ending July 27, initial jobless claims surged to 249,000, well above the expected 235,000. Continuing jobless claims also rose to the highest level since November 2021.

The ISM Manufacturing Index came in at 46.8, significantly lower than the estimated 48.9. A value below 50 indicates a contraction in economic activity for that industry.

Bonds, Gold, and Oil Prices Rise

The US 10-year Treasury yield reported 3.981%, dropping below 4% for the first time since February. The yield and price trends move inversely, reflecting market reactions to Federal Reserve Chairman Powell's dovish comments on a possible rate cut in September, concerns over economic recession, and tensions in the Middle East.

With Powell hinting at a rate cut in September, US stocks surged, while Bitcoin fell to 64K.

Gold prices continued to rise, hitting an intraday record high of 2,482.29, as market optimism for a Fed rate cut in September grew stronger, and a weakened US dollar boosted demand.

Hamas political leader Haniyeh was assassinated in Tehran, Iran, intensifying the risk of war in the Middle East. Oil prices rose on Wednesday, but the weak US economic data yesterday slightly eased the upward momentum of oil prices.

Bitcoin Slowly Rebounds Above 65K

Bitcoin fell to $62,302 yesterday following the drop in US stocks but later slowly climbed back above 65K.