Wall Street is on edge as everyone braces for the upcoming Federal Reserve (Fed) meeting. Since their last gathering in late July, the markets have been experiencing significant volatility.
Wall Street's Reaction
Early August was chaotic for the market: the S&P 500 index faced three consecutive days of losses, including a significant 3% drop on August 5. Traders are concerned about the state of the U.S. economy and are expecting the Fed to cut interest rates.
Investment Expectations
According to the CME Group’s FedWatch tool, the odds of at least a quarter-point rate cut are at 100%. However, the market has rebounded since the rough start of August. The S&P 500 has seen gains in eight of the last nine sessions, climbing nearly 8% from its August low. Investors are optimistic that the U.S. economy might dodge the worst-case scenarios.
Bitcoin's Situation
Despite the optimism in the stock market, Bitcoin continues to face challenges. Its price fell below the critical $60,000 level, reaching $58,140 at the time of writing. The next hurdle for Bitcoin is breaking through the $61,000 to $62,000 range. If it manages that, it could make a run at its all-time high. Otherwise, the price may slide down toward $54,000 in the near term.
Financial markets are closely watching the upcoming Federal Reserve meeting, which will be a key event for determining the future path of the economy and financial markets.
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