After last week's steep declines in US indices, the stock market downturn continues. Upcoming economic reports this week might intensify the volatility.
Stock Market Crash
US stock futures fell Sunday night, continuing the decline from last week when the S&P 500 lost 3.10%, the Dow dropped 2.37%, and the Nasdaq Composite fell 3.45%. This situation is partly due to Washington's economic policies and trade talks with Mexico and Canada, adding to investor uncertainty. This week, economic data releases, including the Consumer Price Index (CPI) and the Producer Price Index (PPI), might affect market performance.
Cryptocurrency Market Decline
The crisis also hit the crypto market, with Bitcoin falling over 5% on Monday, trading at $80,622. Trump's announcement of a strategic bitcoin reserve disappointed investors, who expected large-scale federal purchases of Bitcoin. Matt Hougan from Bitwise Asset Management argues the market is misjudging the situation, viewing the reserve as a long-term geopolitical asset for Bitcoin.
What's Next for the Markets?
Investors are looking for signs of stabilization, but the outlook remains clouded by uncertainty. Jim Cramer pointed out that Trump is trying to find solutions for market stabilization, but current White House actions are complicating efforts. Investors await substantial measures from the administration, though current conditions hinder restoring market confidence.
Wall Street is bracing for another turbulent week: both stock and cryptocurrency markets are facing high risks and uncertainty. Investors remain cautious, awaiting economic indicators and government statements to evaluate their impact on future developments.
