Fed Decision Looms Large Over Markets
The financial world is bracing itself for the Federal Reserve's decision on interest rates, with traders and investors holding their breath as they weigh the odds of a hike.
A CME tool indicates a 66% chance that the Fed will hold rates steady at 3.5% to 3.75%, but this leaves a 34% probability of a rate increase, a prospect that's sending shivers down the spines of market participants.
Tech stocks are already in correction territory, and the crypto Fear & Greed Index is firmly in 'Fear' territory at 29, down from 33 just a week ago. The macro picture is indeed a mess, with Meta, Microsoft, and Qualcomm set to report earnings after market close today.
Crypto markets are treading water as they await direction, with Bitcoin recovering to near $64K but posting a weekly loss of 2.8%. Ethereum held below the $2K psychological level, while Solana slipped near $73. XRP sat near $1.07, barely budging.
The top performer over the past seven days was DeFi, which managed a grand total of 0% change, a testament to the market's wait-and-see mode as it awaits the Fed's decision.