Fed Hawkish Signals Offset by Tech Surge and Crypto Breakout

The US Federal Reserve continues to send hawkish signals, suggesting that further rate hikes may be necessary to combat persistent inflation. St. Louis Fed President Musalem stated that the Fed 'may still need to implement further rate hikes' and advocated for gradual tightening to avoid more drastic policy actions later.

Fed officials have yet to signal a policy pivot, despite falling oil prices and declining long-term US Treasury yields easing concerns over energy-driven inflation. Whether tech stocks and crypto assets can sustain their rebound largely depends on whether inflation, energy prices, and Treasury yields continue to cool.

Nasdaq reached an all-time high closing price of 27,122.09, up 2.26% from the previous day. Meta led gains with a single-day surge of 11.34%, following optimistic expectations surrounding its Muse AI assistant and a target price upgrade by Wells Fargo.