The Market News Today: Asset Classes Diverge as Stocks, Crypto Rise; Gold, Oil Face Pressure

S&P 500 Futures Edge Higher as Market Recovers from Sell-Off

S&P 500 futures showed slight gains early Friday, indicating a potential continuation of Thursday’s rebound. The market recovered after a mid-week sell-off, with the S&P 500 posting its best session since November 2022. Positive earnings from Paramount Global and encouraging jobless claims data helped boost investor sentiment. However, major indexes remain down for the week, with the S&P 500 and Nasdaq on track for their fourth consecutive losing week. Analysts expect continued volatility but maintain a favorable long-term outlook for stocks.

NYSE Rally Shows Strong Upside Volume, but New Lows Still Outpace Highs

Thursday’s NYSE rally saw 87% of total volume traded to the upside, with 79% of stocks rising. Nasdaq experienced similar strength, though less pronounced. Despite the rally, new 52-week lows outnumbered highs on both exchanges. Trading volume was slightly below average. After hours, Paramount surged on earnings beat and workforce cuts, while Expedia slipped on softening travel demand despite beating expectations. Unity Software fell after forecasting lower-than-expected Q3 revenues.

Bitcoin Surges Past $60,000 as Cryptocurrencies Rebound from Sell-Off

Cryptocurrencies rebounded Thursday, with Bitcoin climbing over 11% to $61,232.36 and Ethereum rising 12%. The recovery follows a significant sell-off earlier in the week that saw Bitcoin briefly dip below $50,000. Crypto-related stocks like Coinbase and MicroStrategy also gained. Analysts attribute the market volatility to macroeconomic factors, including tensions in the Middle East, the yen carry trade unwinding, and recession fears. Despite the recent turbulence, Bitcoin remains up nearly 44% for the year.

Gold Prices Dip Amid Rate Cut Speculation and Market Volatility

Gold prices declined slightly on Friday, heading for a weekly drop as investors await cues on potential U.S. interest rate cuts. Despite Thursday’s gains, gold faced its largest weekly decline since early June. Analysts note that gold could benefit from increased risk aversion or looser monetary conditions. Markets anticipate rate cuts in September and December, with attention turning to upcoming U.S. economic data. Physical gold demand saw a slight increase in India, while premiums rose in China due to safe-haven buying.

Oil Prices Dip, but Set for Weekly Gain Amid Geopolitical Tensions

Oil prices slightly decreased in early Asian trading Friday but were on track for a weekly gain exceeding 3%. The rise is attributed to positive U.S. jobs data alleviating demand concerns and ongoing Middle East conflict fears. Geopolitical risks, including escalating Israeli airstrikes in Gaza and potential Iranian retaliation, supported prices. Houthi attacks on shipping near Yemen and production issues in Libya’s Sharara oilfield also contributed to market tension. However, a strengthening dollar could potentially limit oil price gains.